Bust-Proof Investing For Boomers

We’ve been focussing on the “senior bust” that many baby boomers will face as they approach retirement. 

So how can baby boomers avoid the senior bust?

The starting point is to understand your finances.  You’ll need to know your current assets and have a good idea of how much you’ll need to live off during retirement.  Assuming your current retirement is not adequate, you’ll need to save more and invest wisely.

Some alternatives include:

Delay retirement.  The longer you work, of course, the more you can save and the longer it will be before you need to draw off of your retirement funds.  Assuming your children are grown and your expenses are minimal, you can probably save a great deal more for retirement than you could when you were younger. read more

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Baby Boomer Retirement May Be A Bust

Unless they take action, many baby boomers are heading for a senior bust.

Many of the boomers we know have not saved sufficiently for retirement.  Spooked by the last two bear markets, they took their money out of the stock market, selling off when the market was near its low point.  Now they’re looking for the high returns necessary to produce the income they’ll need when they retire – yet they also want to avoid risk.

Unfortunately for risk-averse investors, there is an inverse relationship between risk and reward.  Investments that offer the potential for high returns usually also carry high risk.  Many investors who need high returns are keeping their money in money market funds or certificates of deposit, which carry almost no risk, but offer returns that fail to keep pace with inflation, let alone provide a real return. read more

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