One of the
largest worries that a baby boomer has to deal with is the financial aspect of
life. It may seem strange to include the
money aspect of your life in this e-book, but the Baby Boomer needs to take
into account the financial obstacles that they are beginning to experience.
Many baby
boomers are already seeing the financial crunch as they watch their parents
struggle to pay the bills. Some of them
are seeing that their parent’s homes are being reverse mortgaged to pay them
something back so that they can actually afford daily life. Even worse, should they need long term health
care and end of life care, they aren’t sure of just how that’s going to be paid
for.
But, there is a
problem. The Baby Boomer generation is
also the generation that changed the world with their care free attitude. They started their lives in a post war period
that was quite prosperous, didn’t have to worry about saving because many of
the years have been economically beneficial to them. And, now, most baby boomers don’t have the
funds that will allow them to retire.
Baby boomers
liked to spend, and they spent more than any other generation before them. They also liked to mortgage real estate, run
up credit cards and even have started more businesses than any other
generation.
What does all
of this mean to you, though?
As a Baby Boomer, is it incredibly important for you to invest the time and money into looking at your financial situation.
The first thing
you need to address is how long you’ll be working. Many Baby Boomers plan to work longer. Since this generation has aged well to this
point, they are expected to live longer.
But, that doesn’t mean that they will be leaving their jobs at the
standard age of 65 which is what Social Security allows them to do.
Instead, many
of them, more than half, will continue to work longer. Some will retire only to work part time,
start their own business or work without pay.
The smallest percentage of Baby Boomers plans to never work again after
they retire.
The question
is, what can you financially do?
Many of your
parents didn’t spend their time determining just how expensive it will be to
afford health care and even more so the cost of living that is today. For that reason, many more are living off of
Social Security, help from family and even elderly care services.
But, you don’t
have to find yourself in this position.
Here are some tips that can help you to get your finances in order so
that you can work or not work at your leisure when you reach your retirement.
·
Savings. The
largest component of being able to live well after you retire is the money that
you have in the bank. Of course, if you
haven’t started saving at this point, you still should be considering it. The payments that will come in from Social
Security are likely to be quite low in comparison to the lifestyles that most
Baby Boomers live today.
·
Spending. Many Baby Boomers like to spend. But, now is the time to reel that in some so
that you can afford to spend longer into your future.
·
Determine what
pension, 401k or other type of investment you have and manage it. It will be incredibly important for you to
learn how these funds are doing. As you
approach retirement, you’ll need to readjust the funds to be more conservative
so that you don’t lose it all.
·
Invest
wisely. Although there is plenty of time
to invest and see a nice return, it is also something that should mean more
risk to you now. You’ll want to do the
research needed and work on your risk tolerance to determine the best
opportunity for you.
The Key To Success
Since each
financial outlook is different from one Baby Boomer to the next, one of the
most beneficial tasks that you can take on is to find a financial advisor. While we have talked a lot about the things
that you can do to improve your life’s longevity, you need someone that can financially
make that possible. A skilled financial
advisor will provide you with the knowledge to make the right decisions,
ultimately.
They can help
you to determine how to spend, invest and save your funds. They can help to develop a strategy that will
allow you to fund the lifestyle that you are living today well into the
future. Working with you, they will help
you to find out what things you can do differently now, so that the financial
reward comes later.
What You Need To Plan For
What you may not
realize is just what you need to plan for.
With the longevity that you’ll get from being healthy, you will need
funds that will take you through your entire life. If you have a lifestyle that you are
comfortable with right now, you’ll want to maintain that in the coming years as
well. With financial advice, that can
happen.
In addition to
this, more and more people are looking at traveling, exploring the world and
enjoying the luxuries that life has to offer.
With this also comes an added cost.
While these things are excellent tools to keep your mind stimulated and
your body healthy, you’ll need to be able to afford them.
In addition,
there is health care to consider. With
the rising costs of just stepping foot into a doctor’s office, it is becoming
increasingly important to find a way to afford this too. The risk of counting on insurance companies
or government funded medical care is quite limiting and can often place you
where you don’t want to be.
Even still,
many Baby Boomers still have homes to pay off that are mortgaged at least one
time. This means that you’ll need to be
able to make enough to use this money wisely.
While there are options like reverse mortgages that allow you to be paid
a sum of your home’s value each month, this comes at a high price and may not
be the right decision for your needs.
Beyond anything
else, the Baby Boomer generation is one that likes to set life at their own
pace and likes to do things their own way.
Having changed the world, you may just need some extra funds to make
that continue, too.
If you are a
Baby Boomer, it is time now to make the decisions regarding your finances for
the future. If you don’t make these
critical decisions now, then the funds won’t be there when you need them.
Invest your time and money into a solid, trusted financial advisor that you can work one on one with. Learn what they can offer to you and find out just what it is that you can expect from them. With the dedication of these individuals, you will quickly find your place in the financial lifestyle you want to live.
The Baby Boomer
must address money concerns now, while they are healthy and while they have the
time to make changes. To live a
prosperous life, you need to manage the financial aspect of it as well as the
health aspects.
Yet, this
doesn’t have to be difficult with the right people by your side to make it
happen.
