I received this information from my financial planner, Wally McMaking with McMakin Financial Services that I thought I would share with everyone.

Baby Boomers and Retirement

Procrastination, timing (bad), and poor financial decisions have caused many 'boomers' to face financial disaster just as they are ready to retire.  The situation is serious because 'boomers' have not saved enough for retirement but still want to retire early.  A recent business report form the Associated Press explains the reasons for concern among 'boomers".

 

REASONS FOR CONCERN

1.  Pension plans are a thing of the past.  In 1980, 39% of workers had a guaranteed pension payout during retirement.  Today, that number has been drastically reduced to 15%.  pension plans have been replaced by 401 (k) plans. which require the employee to save more for his retirement and do not guarantee a fixed payout during retirement.  Today, 42% of workers have 401(k)s.

2.  "Boomers" relied on their homes for part of their retirement income.  The idea was to downsize before retirement and use the profit to subsidize retirement  income.  In some parts of the country, the crash in housing prices has slashed home values by a third. Locally, however, real estate has only dipped about 11% in 2010 compared to 2009.  We are still 38th in the nation in foreclosures - and this is the one time we like being on the bottom of a list!

3.  Mortgage debt for'boomers' is another problem.  Twothirds of boomers between ages 55-64 have a median mortgage debt of nearly $100,000.

4.  Too many boomers are relying on social security to fund their retirement income - no explanation required.

5.  Health care costs in retirement eat up a higher percentage of income.

6.  The unemployment rate is near 10% and many boomers both WANT and NEED to work longer than pervious generations.

Wally told me that it is never to late for many boomers to start planning.  Here are five areas he suggested to think about and act upon NOW:

1.  Create a plan

2.  SAVE MORE NOW!

3.  Retire later.

4.  Scale back your lifestyle

5.  Delay your social Security Income.

Call Wally if you want to discuss any of these ideas.  He has done a great job for us personally.  225-926-9585

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