Baby Boom or Baby Bust: What Will Your Retirement Look Like?
Recent Headlines Read
Households lose Over 40% of their Wealth !
This is no surprise for many Americans struggling to make ends meet during times of economic uncertainty.
The Federal Reserve's Survey of Consumer Finances documents steep declines in Americans financial status between 2007 and 2010 Including:
- 7.7 % decline in Median Income
- 38.9% decline in Net Worth, Assets minus Liabilities
- The Median value of direct and inderect stock holdings fell 18.3%
- The Median value of non-financial assets fell 16.8%
- The Median value of homes declined by 18.9%
What Are We To Do?
What Will Baby Boomers Do?
Overcoming the past economic down turn will be difficult for most baby boomers, especially those on the front end of the wave who began turning 65 in 2011. Time, is the best antidote for recovery in the financial realm, unfortunately older boomers have less time. Younger boomer stand a better chance having more time before retirement.
Some investment strategists say it is time for boomers to double down, increasing contributions to 401K and IRA accounts. Howerver, in this choppy market it is hard for many boomers believe that is the answer for them. Beyond that it difficult to contribute more when many boomers have experienced loss of earnings.
Working longer is almost mandatory for many boomers, but the good news is we are all healthier and expected to live longer than previous generations.
regardless of our individual circumstances baby boomers must now take some time to rethink what their golden years will look like.