Gen X Is Stuck in the Middle and Financially Squeezed. How One Financial Adviser Is Helping.

Gen X families, including affluent ones, face a hornet’s nest of financial challenges, from helping out their adult children to providing care for ageing parents to managing careers in a perilous job market.

Zach Mangels, a senior vice president at Wealthspire Advisors in San Rafael, Calif., estimates a quarter of his clients are in the Gen X demographic.

“Mortgage rates are higher, carrying costs are higher, educational costs are higher, groceries are higher, eldercare is higher—all of that stuff eats into cash flow. And even people with higher incomes are feeling that,” says Mangels, 40.

Barron’s Advisor spoke with Mangels about the financial challenges facing his Gen X clients, people between the ages of 46 and 61.

Mangels touched on how he creates short-term plans for clients concerned about career setbacks, why he recommends boundaries for Gen X parents who want to financially support adult kids, and how he guides clients with ageing parents.

How has financial planning for Gen X clients changed?

Typically, when you create a financial plan, you’re looking at long-range goals.

But now I look at more immediate needs because of the pressures Gen X families are dealing with.

For example, I see more clients whose children are coming back home after graduating from college, needing financial support for a much longer period of time than previous generations expected to receive.

How should help for adult children be structured?

If they need to support their child, I want to understand the nature of what the support will look like.

I have a client whose kids just graduated and whose majors don’t lend themselves to a high income right now.

They knew their kids would be coming back home after graduation and we talked about what the nature of their help would look like.

First we looked at their financial plan to see what kind of support they could provide and we defined the maximum amount.

Then we designed the support in a way that would be planned, explicit, and with purposeful boundaries.

That’s very important for the younger generation. Parents need to know how to help their kids without them becoming dependent.

The children need to have agency and to know they don’t have access to an unlimited piggy bank.

What was the plan?

The clients had a conversation with their kids about what to expect.

The kids could live rent-free for three years, with a small stipend, an amount that didn’t disincentivise them from looking for a job.

In this environment, entry-level jobs are increasingly hard to come by, but any job that moves you closer to a career you want is worth looking at. In this case, their daughter got a job as an assistant to a personal shopper, which was related to the direction she wanted to follow.

Do you help the parents practice what to say?

I didn’t provide a ton of details to the parents with what exactly to say. But I coached them on the basics—having a clear, purposeful, intentional conversation and getting buy-in from their kids.

How do you advise clients with ageing parents?

The cost of long-term care for seniors has increased dramatically.

One of the conversations I have with my clients is how they perceive their parents’ financial circumstances and to what degree they might have to provide a layer of financial support. My dad was in memory care for a few years and we paid maybe 15 grand a month.

My clients’ parents are usually relatively stable financially. But the most important issue is the use of the family residence to help provide support. A lot of people in California who have owned homes a long time have a lot of equity in those homes. That’s the ultimate backstop, the last line of defence.

What about the job market?

Gen X is also dealing with career and income volatility. We’ve seen all the headlines about tech layoffs and the rise of AI. A lot of my clients work in the tech industry.

The conversations I have more frequently focus on clients’ concerns about their ability to continue earning at the same level.

We look at diversifying their equity component more quickly, getting it out of company stock, especially for those in tech.

For example, some clients at Amazon have restricted stock units they can sell periodically. But now they’re selling those (Amazon) stocks and then deploying the [cash into other equities] more slowly.

We’re hearing about how quickly AI is going to change things. For people in software on the front lines, they’re pretty anxious about it.

Can you provide an example?

One client who works at Google told me he expected a lot of change with AI as the disruptive force.

A few companies will benefit, he feels. A lot won’t. So he’s actively selling his company shares.

Historically we would reinvest the proceeds as they’ve come in. But now he wants to slow that down. Hold cash a little bit longer and slowly deploy it.

His perception is that change is coming quickly. He doesn’t know what that will look like but it probably won’t be good.

In behavioural finance, we know you feel a loss much more significantly than you feel a gain. And he’s trying to avoid putting money in the market right before there is a big correction.

It sounds stressful.

It’s super stressful. And as we go into 2026, especially in the tech sector and among those with high incomes, I see a lot of anxiety.

I have another client who works in finance, but the nature of his job moves with economic cycles.

He was laid off at the start of Covid and he’s getting nervous again. It’s a “vibecession” that a lot of people are feeling right now.

How do you help someone worried about a job loss?

Over a year ago, we restructured where his investments are held, so that if he gets laid off and ends up spending his emergency fund, the next thing he’ll tap is a more conservative account we created.

It’s not that we took his overall asset allocation and made it more conservative. We just put more investments in this other account. It’s a matter of asset location and it gives him peace of mind knowing he has a fallback he can tap.

That strategy would be helpful for anybody today. The challenge is if you have accounts with a lot of capital gains.

Does multigenerational planning help?

My work with baby boomer clients often involves conversations about supporting their Gen X and older millennial children.

I’ve seen a lot of parents and grandparents of Gen Xers looking for ways to accelerate their generational wealth transfer, trying to provide assistance now when it’s more impactful on their kids’ lives.

For example, a baby boomer client was looking for ways to help her Gen X son, who is married with a child in middle school, but had started accumulating a lot of debt after he was laid off.

We worked together to model the level of support she could provide and how to structure the assistance so it wouldn’t impact her son’s sense of independence.

Ultimately, she decided on a one-time gift that would cover about six months of living expenses. I call this indirect Gen X planning.

Reporting season has once again reminded investors that a strong profit does not guarantee a rising share price, and a large loss does not always trigger a sell-off. What matters most is how each result compares with expectations and, increasingly, what management says about the year ahead. During the August 2026 season, companies offering credible turnarounds or unexpectedly strong guidance were rewarded handsomely, while those flagging weaker margins, slowing demand or greater uncertainty were punished.

The following ranking draws on Morningstar’s review of 164 ASX-listed companies and measures each company’s share-price movement on the day it reported. This captures the market’s immediate response to the earnings announcement, before subsequent economic developments, dividends and company-specific news cloud the picture. Here are the five biggest winners, and the five hardest-hit losers, of the season so far.

The five winners

1. Bapcor (ASX:BAP): +41.0%

Bapcor delivered reporting season’s largest relief rally after presenting early evidence that its troubled automotive-parts business was stabilising. Although underlying revenue fell 1.8% to $1.92 billion and underlying NPAT collapsed 85% to $10.8 million, underlying EBITDA of $152.5 million exceeded guidance.

More importantly, working-capital initiatives released $68.5 million in the second half, lifting cash conversion to 109.4% and reducing net debt by 63% to $135 million. The statutory loss was $431.6 million, largely because of non-cash impairments. Investors focused on improving operational momentum, stronger liquidity and management’s expectation of modest FY27 revenue growth.

2. Zip Co (ASX:ZIP): +18.2%

Zip comfortably surpassed its FY26 targets, sending the buy-now-pay-later provider’s shares sharply higher. Transaction volume rose 23% to $16.7 billion, while cash earnings before tax, depreciation and amortisation jumped 58% to a record $268.9 million. Statutory profit climbed 46% to $116.4 million, and the cash operating margin expanded by 4.2 percentage points to 20%.

The strongest signal was guidance for FY27 cash earnings of $340 million—around 26% growth and above analysts’ forecasts. US transaction volume increased 42.5% and now represents three-quarters of group volume, offsetting weaker customer activity in Australia.

3. CSL (ASX:CSL): +17.3%

CSL’s result was hardly spectacular in isolation, but it cleared a market bar that had fallen dramatically following earlier downgrades and restructuring announcements. Underlying NPATA was US$3.1 billion, down 2% in constant-currency terms, while operating cash flow reached US$3.51 billion.

CSL maintained its full-year dividend at US$2.92 per share and completed a A$1 billion buyback. The real catalyst was FY27 guidance for approximately 5% underlying profit growth, compared with market expectations closer to 2%. After an extended period of earnings disappointments, investors interpreted the outlook as evidence that CSL’s core plasma business was approaching a sustainable recovery.

4. Judo Capital (ASX:JDO): +16.9%

Judo Capital demonstrated strong operating leverage as its specialist business-lending franchise expanded. Full-year profit before tax rose 34% to $168.1 million, while pre-provision profit increased 42%. Gross loans and advances grew 18% to $14.7 billion, reaching the top of the bank’s guidance range and comfortably exceeding broader system growth.

Deposits increased 24% to $12.2 billion, return on equity improved by 1.1 percentage points to 6.4%, and earnings per share rose 29% to 9.9 cents. Reaffirmation of the FY27 outlook gave investors confidence that loan growth could continue without sacrificing margins or credit quality.

5. Super Retail Group (ASX:SUL): +15.8%

The owner of Supercheap Auto, rebel, BCF and Macpac reported record sales of $4.2 billion, up 3.2%, despite cautious discretionary spending. Profitability went backwards: normalised profit before tax fell 7% to $306 million and normalised NPAT declined 2.8% to $226 million as transformation spending weighed on margins. Nevertheless, the result exceeded subdued expectations, online sales grew 5.3% and membership across the group’s loyalty programs reached 13.1 million. Investors were also encouraged by positive early FY27 trading, stable gross margins and continued market-share gains. A fully franked 33-cent final dividend added to the appeal.

The five losers

1. Hansen Technologies (ASX:HSN): –21.2%

Hansen’s historic result met expectations, but investors recoiled from its outlook. The utility and communications software provider achieved an underlying EBITDA margin of 31%, exceeding its 30% target, while generating strong cash flow. However, management designated FY27 an “investment and transition year”, signalling a roughly five-percentage-point margin contraction as spending on products, sales capabilities and organisational changes increased.

Revenue had already been broadly flat, leaving investors concerned that the investment program would depress earnings before new growth appeared. Leadership changes, including the chief executive’s departure, added uncertainty. Management expects revenue growth and margins above 30% to return in FY28, but the market was unwilling to wait.

2. Life360 (ASX:360): –19.4%

Life360’s headline growth was impressive: quarterly revenue rose 38% to US$159 million, subscription revenue increased 31%, and adjusted EBITDA climbed 53% to US$31.1 million. Monthly active users reached 102.4 million and paying circles grew 27% to 3.2 million. The sell-off reflected expectations rather than a collapsing business.

Net income fell 18%, the net margin contracted from 6% to 3%, hardware shipments dropped 18%, and full-year EBITDA guidance was merely maintained. After a strong valuation run, investors wanted a larger upgrade and clearer evidence that heavy investment in advertising, international expansion and artificial intelligence would generate additional earnings.

3. PEXA Group (ASX:PXA): –17.0%

PEXA reported a 7% increase in continuing-operations revenue and 12% EBITDA growth to $152 million, accompanied by a two-percentage-point margin expansion. Free cash flow increased 39%, suggesting the core Australian electronic-conveyancing platform remained highly profitable. Investors instead concentrated on management’s warning that property-transfer volumes could decline, alongside regulatory uncertainty surrounding the fees PEXA can charge.

The company is also continuing to invest heavily in its loss-making international expansion. Morningstar considered the market reaction excessive, arguing that structural transfer-volume assumptions had not materially changed, but the combination of softer near-term activity and regulatory risk overwhelmed the respectable headline numbers.

4. SEEK (ASX:SEK): –14.3%

SEEK produced solid FY26 figures, including 10% revenue growth to $1.20 billion, a 15% rise in EBITDA and 28% growth in adjusted earnings per share. It also lifted its fully franked annual dividend by 13% to a record 52 cents. Those achievements were overshadowed by falling paid job-ad volumes and cautious FY27 assumptions.

The statutory accounts included a $201 million loss from the SEEK Growth Fund and $377 million of significant items, making the headline result considerably less attractive. Investors were particularly concerned that economic weakness could limit volumes while the company continued investing in platform integration and artificial-intelligence products.

5. JB Hi-Fi (ASX:JBH): –12.3%

JB Hi-Fi’s full-year result was broadly respectable, with group sales rising 5% to $11.1 billion and underlying earnings per share increasing 6% to $4.48. The damage came from its current-trading update. Australian sales were almost flat during the June quarter and deteriorated further in July, while earnings in the core Australian electronics business fell 3.6%.

Housing-related categories were particularly weak as higher living costs and interest rates constrained household budgets. With JB Hi-Fi entering the season on a demanding valuation, an in-line historic result was not sufficient: the loss of sales momentum prompted investors to rapidly reduce their expectations for FY27.

Overall, the season showed that share prices react less to whether profits rose or fell than to the gap between results and expectations. Bapcor was rewarded for being less troubled than feared, while several fundamentally profitable companies were punished because their outlooks failed to justify elevated valuations.