How to Dig Yourself Out of the Boomer Retirement Crisis
This week’s slap was hard for even me to believe, and it goes out to the boomers… again.
For the last five years, in most areas of the country, housing prices have been steadily increasing.
That’s a good thing, especially if you’re approaching retirement and are planning to take out your equity and downsize to a smaller home.
And, as we all know, the stock market has been on a record tear!
We’ve gone from 13,000 five years ago to nearly 22,000. I’m sure 22,000 will happen this year, and when it does, it’ll be a 69% move.
Think about that – 69%!
We also have low inflation. That’s a big positive for consumers and businesses.
And even though low interest rates have put a squeeze on fixed-income folks, they are great for businesses.
The economy has been improving as well.
If you look at what the stock and bond markets have done since the election, and the uptick in consumer sentiment, this is nothing short of a boom!
But here come the boomers…
I’m not kidding, this is unbelievable! During the same five-year period…
- An increasing number of boomers have stopped funding their retirement accounts. That’s during one of the biggest moves in stocks ever.
- 59% report that Social Security is their primary source of income. That’s up from 42%.
- 24% express confidence that they’ll have enough in retirement. That’s down from 37%.
- Twice as many now report that they have to rely on their children for financial support.
In other words, boomers haven’t just missed the entire recovery, they fell further in the hole during it.
And most have missed it for the exact reason I have been screaming about here and in other articles for years… They panicked during the collapse and went to cash. They sold low again and let their fear dictate their decision-making.
We don’t seem to be able to get out of our own way. The boomer retirement mess is getting worse, not better.
P.S. That said, the boomer retirement crisis is getting only worse… but there are ways to dig yourself out of the hole. In fact, my colleague Marc Lichtenfeld recently discovered the perfect retirement business. The best part? No employees, no red tape, and it requires less than four hours per week… It’s essentially an extra paycheck ($1,038) each week. To learn more about how you can collect the next payout – scheduled for September 1 – click here now.