February 16, 2017
Baby Boomers Potluck Revisited
As promised, here is a quick review from the retirement potluck I attended over the weekend! There were two kinds of people present to celebrate my friend’s retirement – those focused on retirement and those focused on the party. The first group had some obstacles standing in their way, while the second only had one thing on their minds – a good time.
In my brief presentation, I highlighted some of the issues that are currently facing retirees – increasing health care costs, increased life span, and I introduced them to the YOYO concept – You are On Your Own. This seemed to strike a chord with those present, so I thought it would be most advantageous for everyone if I addressed some of their questions:
Have they saved enough to retire?
As previously discussed, through a combination of lack of planning, economic and lifestyle changes, and bad timing, many baby boomers are facing a personal finance disaster. Factors working against these would-be retirees include a rocky decade on the stock market, a sharp drop in home values, traditional pensions dying off, and increasing life expectancy. “But just like with every other stage of life they’ve gone through, baby boomers are expected to transform how we think about ‘retirement,'” says NPR’s Jennifer Ludden. Many will be forced to continue working, but remember: boomers tend to “derive more of their identity through work” and an AARP poll of those turning 65 this year found that 40% have no plans to retire — ever.
What is the “coolest” place that I have visited?
Nothing even comes close to the river cruise I shared in my December 16 blog. The trip amongst European castles and ruins was unbeatable!
Should I investigate self-employment?
Self-employment is a great way to earn extra income during retirement, while also a way to fulfill life-long dreams. Self-employment is controllable, which makes it an attractive strategy. Some people may have planned their finances well and may not need the extra money from self-employment, but it still helps keep the mind sharp and gives you a daily purpose. Unfortunately, the 2008 financial crisis severely eroded the savings of many baby boomers and self-employment is a way to generate supplementary income to help them achieve their Lifestyle Planning dreams and once again balance their finances.
What are the biggest changes from when we were young?
In my opinion (in no particular order): increased life expectancy, learning that you CAN lose money in real estate, bonds might not be a safe investment anymore, and the old saying, “What is good for GM is good for America.”
Do you have questions? We would love to address them as best we can – give us a ring!
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