Dear Young People. One thing about getting older is that you never think it will happen to you, until it does. And once you're there, you can't believe it has happened. Truly. You simply won’t believe it.

I had one of those moments this week, and I’m only 40.

I was one of the oldest people in the room

Recently, I attended an investment seminar with a classroom of full of very switched-on twenty-somethings. At aged 40, I was one of the oldest people in the room.

There was no age restriction on this seminar, mind. It was just that my generation didn’t seem all that into it. Those of us aged 40+ who were in the room were only starting the investment journey. All the twenty-somethings were well on their way and seemed just as confident as the presenter in their knowledge.

I admired their astuteness as they raised interesting issues and rattled off facts for discussion, all the while garnering up-to-the-second, real-time data via apps on their phones and glowing effortlessly.

By 3 pm, powered by water only, they were still chatting, scrolling and processing information, distracted only by the occasional TikTok. Me on the other hand, was two coffees deep and in desperate need of a nap.

What ever happened to my Sony Discman?

I was surprised so many of them were already investing at such a young age, as I had naively figured it would be more of my own age group who were into it.

This revelation of the investing difference between our age groups brought forth two distinct feelings.

Firstly, I genuinely felt happy that these young people were already leaps and bounds ahead with their personal finances. They possessed the knowledge, tools, and motivation to excel with their money, and the charts and calculators we used proved it. The future was undoubtedly bright for this group.

Secondly, I felt a fleeting regret that I hadn't had the inclination or opportunity invest my cash (rather than spend it all) when I was their age - back in the late 90s/early 2000s.

I briefly wondered what happened to my Sony Discman from 2003. Then I imagined what that money (from memory, around $200 odd) could have been worth twenty-years on, had I invested it, like these Gen Z were already doing.

(Well, I used a calculator, and it would have been worth about $475 today. But sadly, that Discman went to landfill a long time ago).

‍

 We lived it up in the 90s/00s

Millennials, Gen X, and those others born pre-1990 didn't have access to the plethora of DIY information available to our younger counterparts today, including online retirement calculators, KiwiSaver calculators, budgeting apps, webinars, blogs, #fintok, Sharesies, Hatch, podcasts, and so forth.

Investors as we knew it were typically old white men, not 20-year-old university students from diverse backgrounds.

But that's only part of the story. To be honest, while we (Millennials and Gen X) probably lacked the tools and education, we lacked the motivation as well. Following in the footsteps of our Boomer parents who lived through a bit of a golden age, my contemporaries and I quite possibly preferred to spend our hard-earned cash (yes, cash) on the rave scene, pubs, clothes, electronics and OEs, (where we did the same thing, but in other countries.) Oh, and we even SMOKED. (Boy, that was foolish.)

Nowadays, once the kids are in bed, we get our cup of tea and put on our reading glasses and doom scroll the headlines about not having enough for retirement (apparently it is around $775k). And we wonder if/how/why we missed the boat. (Well, I do anyway.)

Up until a few years ago, I naively thought default KiwiSaver and the Super would be enough. It won’t be.

Back to the seminar. There was a stabbing moment of remorse as I used the Sorted calculators to see the thousands of dollars that could have been, had I paid attention to my investments sooner.

But my moment of regret for what could have been had I started investing in my twenties (let's face it, it was actually just shallow self-pity) was fleeting.

The reality is that I had a choice to be better with my money back then and chose not to. I have to own that.

‍

‍Gen Z are on to it

As opposed to how I used to roll at their age, I see Gen Z spending their money at the gym, buying second-hand clothes, going to vegetable markets, pursuing side hustles, and investing that money. They're getting around on bikes and scooters, not smoking, and not even drinking that much (apart from kale smoothies.) They're doing great, really great.

And of course, they have to be. Buying a house is becoming more of a luxury, not a given right of passage for Kiwis. As climate change and AI have arrived at our doorstep, the prospect of some kind of self-insurance strategy doesn’t seem so wild anymore. Tiny homes and off-grid living is not a passing trend for hippies. Gen Z faces struggles now that no one has ever had to. And they're rising to meet those challenges like true champions.

‍

‍It's never too late

It's true that my retirement funds at age 65 certainly won’t be as hearty as it could have been, had I jumped on the investment bandwagon twenty years ago. To me though, those Gen Z’ers in the seminar were an inspiration to get into investing and to get onto it now.

While I don’t have the 60+ years that they have, I still have the 40+ years (finger crossed) to adopt the "little and long" approach — and continue investing and reaping the rewards of diversified risk and compound interest.

The message from the seminar was crystal clear.

The best time to start investing was always yesterday, but in case you missed it, you can always start today.

‍

Shona.

‍

Always get professional advice

The information shared in this post is meant to be general guide to support you on your journey. When making important decisions about your finances, we encourage you to seek independent financial advice first, tailored to your unique situation.  As well as talking with a financial adviser, make sure you talk to your lawyer and accountant too – together they'll help you find the best solution for your specific situation. Our knowledgeable financial advisers are here to help. Check out our website for the details about our financial advisory services in our disclosures  
https://www.velocityfinancial.co.nz/disclosure-statement.

‍

‍

‍

‍

‍