| Baby Boom—Or Bust? They
grew up in prosperous times and lived life to the hilt...
but have baby boomers
saved enough for retirement?  In
the eighteen years between 1946 and 1964, over 78 million babies were born in
the United States. World War II had been good for the American economy, pulling
it out of the Great Depression for good. During the “fabulous 50s,”
unprecedented industrial growth provided steady employment and rising incomes.
The four-child family became the ideal, along with a house in the suburbs, two
cars in the driveway, and that wonderful new invention, the television, in the
living room. One-income families were the norm—and for the middle class at
least, one paycheck was enough to supply families with an increasing number of
luxuries and new experiences.
While
many boomers have invested wisely for retirement, the majority have just not saved
enough. There have been incredible social and economic changes since the 1950s,
when boomers grew up with an innocent confidence that life could only get better.
Unlike their fathers, who were likely to stay with one company and draw a sizable
pension, many boomers have job-hopped—sometimes out of boredom or a desire
to find work that would make them happy, and sometimes because of mergers, layoffs,
outsourcing, and early-retirement buyouts. Skyrocketing
housing, education, and healthcare costs have depleted retirement nest eggs as
boomers have found themselves sandwiched between college expenses for their children
and care for their elderly parents. The increased frequency of divorce has also
left many boomers with much less in their IRAs and 401Ks than they thought they
would have.
Then there are those who have put aside nothing at all. Perhaps they followed
the advice in the popular 70s song “Cast Your Fate to the Wind.” Or
perhaps they lived paycheck to paycheck and simply never had anything to save. Financing
Retirement: How Much Will You Need? In
2008, the oldest of those 78 million boomers will turn 62 and will qualify for
reduced-rate social security payments. In the decades that follow, more and more
will qualify. As most people know, social security replaces only about 40% of
pre-retirement income. Investment advisors suggest that retirees will need 60-80%
of their pre-retirement income in order to maintain a comparable lifestyle. But
that assumes that their expenses will decrease—that retirees will simply
put themselves on austerity budgets and make up the shortfall. Unfortunately,
even if they want to be more frugal, it won’t be easy. Supplemental Medicare
policies and long-term care insurance are new expenses retirees must absorb, and
property taxes, home and auto insurance, energy costs, and food expenses will
all continue to rise.  The
Worst That Could Happen...
Boomers’ biggest fear is that a healthcare
crisis will use up funds they’ve set aside for retirement. Medical advances
allow people to live much longer than in the past, but their quality of life is
often not the best, and spending for prescriptions that prolong life is through
the ceiling. Boomers are worried about living out their final years in an unpleasant
but expensive nursing home, or having to ask their children for help. This fear
is another factor that fuels the desire to accumulate just a little bit more money
and take less from retirement nest eggs so they’ll be able to grow and the
funds will be available when work is no longer an option.
How
will boomers find needed funds in retirement? An
Associated Press survey reported that the majority of boomers hope to retire from
their current jobs at around age 63. However, 66 percent anticipate they will
work for pay after retiring. Twenty-seven percent will continue to work out of
financial necessity, 43 percent because they can’t picture “sitting
around doing nothing,” and 19 percent so that they will have money available
for extras they could not afford on their retirement income. The
majority of boomers foresee neither full-time leisure nor full-time retirement,
but a combination of both. With 30 years of retirement a real possibility, they
are looking for challenges, not rocking chairs. Some plan to launch new careers
or use their skills as volunteers. Others say they will go back to school, start
their own businesses, or try to turn a profit from a hobby.
Are You a “Wealth Builder”—or “Stretched and Stressed”?
In
The New Retirement Survey, Harris Interactive® and Age Wave questioned
a diverse population and identified five different types of soon-to-be retiring
boomers: the "Empowered Trailblazers," the "Wealth-Builders,"
the "Leisure Lifers," the "Anxious Idealists" and the "Stretched
and Stressed." - About
18% were “Empowered Trailblazers,” people who look forward to retirement
because they see it as a progression to another phase of life. About 90% in this
group plan to work some after retirement, but they will also be busy with travel,
volunteering, taking or teaching classes, and generally enjoying anything new
that comes along.
- “Wealth
Builders” (20%) are looking for more financial security for themselves and
their families, and money is the main reason 79% will continue to work after official
retirement.
- “Anxious
Idealists” (13%) worry that they do not have enough money to retire, especially
since they want to leave an inheritance for their children and a legacy to charitable
organizations.
- “Leisure
Lifers” (13%) just want to relax. They’re sick of work, probably never
liked their jobs, and definitely don’t want to work after retirement. They
had low income levels and did not save enough, but they figure “someone will
do something” to help them if they get into trouble.
- The
“Stretched and Stressed” (18%) are well aware that they have not saved
enough for retirement. They will work because they have to, but they don’t
look forward to it. This group is the least optimistic.
 You
have an 82% chance of identifying with a group that feels it needs more money
for retirement. With the economy in constant fluctuation and costs of necessities
rising steadily, it’s no wonder that most people fall into the “I need
more money” category. Peace of mind means knowing not merely that you will
somehow be able to survive, but that you’ll have the funds to allow you to
enjoy the happy retirement envisioned by the “Empowered Trailblazers.”
YOU Control
Your Future. Fortunately,
no matter how old you are right now, it is very possible to become a “Wealth
Builder.” This doesn’t mean you have to become a workaholic or even
keep working full time. Instead, you can build an income generator that will provide
funds for you to invest now and to fund your retirement for many years into the
future. And you can do it in the privacy and comfort of your own home, or even
from your RV or vacation hotel. As long as you have Internet access and a telephone,
you can build a successful business that will quickly transport you from a state
of anxiety and pessimism about retirement to one of financial confidence and security—ready
to enjoy the rest of your life in a style you may never have imagined possible.
Is there still time? Absolutely. Obviously, the sooner you get started, the
better.
A
team of skilled business professionals is ready to take you through the steps
of building a home business that can free you from worrying about the future.
If you are ready to take control and secure your financial future, you’ve
come to the right place. Simply
fill out the form below for additional information.
Make
it a great day,
Linda
Stephens
303-703-1418
or
800-608-8554
Email
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