When people feel behind financially, they often take bigger risks—right when they can least afford to.
There’s a quiet but important trend happening right now—especially among younger investors and those who feel behind.
They’re not saving more.
They’re taking bigger risks.
And not the kind of risk that builds wealth.
The Reality: Most People Are Behind
Let’s start with a quick snapshot.
According to Kiplinger, a trusted source for everyday financial guidance, average 401(k) balances are:
- 30s: ~$69,000
- 40s: ~$145,000
- 50s: ~$246,000
That may sound decent—until you compare it to what’s actually needed.
- By your 50s, many guidelines suggest 6x your salary saved
- Early retirement often requires 25x your annual spending
Most people aren’t close.
And that gap creates something far more dangerous than market volatility:
Psychological pressure
What Happens When People Feel Behind
The second article highlights something I’ve seen play out in real time.
When investors feel behind, they don’t usually double down on discipline.
They start looking for a shortcut.
According to reporting from Financial Advisor Magazine:
- Investors who feel behind are more likely to take speculative risks
- They’re drawn to:
- Options trading
- Crypto speculation
- “Get rich quick” strategies
- The motivation isn’t greed—it’s fear of not catching up (Kiplinger)
That’s an important distinction.
This isn’t irrational behavior.
It’s very human behavior.
The Rise of “Gamified” Investing
Layer on top of that:
- Trading apps designed like games
- Instant feedback loops
- Social media highlighting big wins (and hiding losses)
And suddenly investing starts to feel like:
A way out
Instead of what it really is:
A long, slow process of compounding
Why This Is So Dangerous
Here’s the problem:
When you’re behind, you have less margin for error—not more.
But risky behavior does the opposite:
- Concentration instead of diversification
- Speculation instead of compounding
- Timing instead of discipline
It turns a difficult situation into a potentially unrecoverable one.
The Uncomfortable Truth
There is no shortcut.
There never has been.
The people who build real wealth tend to do the same “boring” things:
- Start early
- Save consistently
- Invest in diversified portfolios of publicly traded companies
- Stay invested through good and bad markets
That’s it.
The Real Risk Isn’t Missing Out—It’s Starting Late
The biggest risk isn’t that you didn’t pick the next big winner.
It’s that you:
- Waited too long to start
- Took a detour into speculation
- Or abandoned a disciplined plan
Because the earlier you start, the more time does the heavy lifting.
The later you start, the more you’re tempted to force the outcome.
What This Means for You (and People You Care About)
If you take anything from this, let it be this:
The most important financial advice you can give someone isn’t about what to invest in—it’s to start early and stay consistent.
Because once someone falls behind, the conversation often shifts from:
“How do I build wealth?”
to
“How do I catch up quickly?”
And that’s where mistakes happen.
A Simple Message Worth Sharing
If you have kids, grandkids, or younger colleagues:
- Encourage them to start early—even small amounts
- Show them the power of compounding
- Warn them about the illusion of fast money
Because the greatest advantage in investing isn’t intelligence or timing.
It’s time.
Sources: Kiplinger; Financial Advisor Magazine
Content in this material is for general information only and not intended to provide specific advice or
recommendations for any individual. All performance referenced is historical and is no guarantee of future results.
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through
Western Wealth Management LLC , a registered investment advisor. Western Wealth Management LLC
and Kennebec Wealth Management LLC are separate entities from LPL Financial.
