Baby Boomers are approaching retirement age, but this influential generation is facing some serious financial challenges. The recession that began in 2008 has thrown many Boomers' retirement plans into chaos, leaving them scrambling to put their finances in order so they can finally quit work and start enjoying their golden years.
If you are part of the Boomer generation, then you likely saw your investments plummet in value as the stock market crashed a few years ago. Your attempts to recover from this financial catastrophe may have been held back by low interest rates, which result in poor yields on bonds and other types of safer investment products.
Traditional investment advice recommends moving your money from high-risk investments such as stocks into low-risk products as your planned retirement age approaches. The problem for the Boomer generation is that the yields on many low-risk products are so poor that they do not even keep up with inflation.
Getting the balance right between high- and low-risk investments in the run up to retirement can be tricky, particularly for Boomers, who are having to make urgent decisions in the midst of large-scale economic uncertainty. Meeting with a financial adviser who specializes in retirement planning can help you to find out whether you have the right balance of investments to see you through your retirement. This kind of professional can also help you to reduce your overall risk, which is generally advisable when preparing to retire, while still achieving your target returns.
In addition to the economic turbulence that has depleted many Boomers' retirement accounts, this generation is also facing the challenge of preparing for a long period of retirement. Average life expectancy has improved dramatically for the Boomer generation compared to their parents, which means that it is more important than ever to check that your savings are enough to cover the entire retirement period. Boomers who initially set up their retirement plans decades ago may need to revisit their calculations to check whether they have enough money to live the life they want throughout their golden years.
If you are planning to retire in the next three to five years, then meeting with a financial adviser is a must to ensure that your retirement savings can see you through the rest of your life in comfort. The poor timing of the economic downturn does not mean that you have to accept a lower standard of living in your later years; there are ways to reduce the risk of your portfolio in preparation for retirement while still achieving the returns that you need to live comfortably.
Article From Inter Valley Health Plan