Baby boomer financial concerns and desiresDate posted: 11/4/15 08:30:00 AM
There are 76.4 million baby boomers in the U.S. This massive group is incredibly influential and can make a substantial impact on the economic landscape. As many of these individuals are now entering retirement, their financial priorities may be shifting.
Professional financial portfolio management for boomers
Retirement has become a milestone that means different things for different individuals who reach it, according to USA Today.
"Deciding to invest in the stock market a bit more liberally might be necessary for some boomers."
"For most Baby Boomers, retirement is no longer a point in time at which one immediately stops working. It is now a phased transition which may involve shifting from full-time to part-time work, taking on a position which is more satisfying and/or less demanding, or pursuing an encore career. Few Baby Boomers expect to immediately stop working when they retire," noted Catherine Collinson, president of the Transamerica Center for Retirement Studies, according to USA Today.
If individuals want to continue living in the manner to which they have become accustomed, provide for their families, invest in their futures and pay for their grandchildren's higher education, they may be forced to seek additional income by working a little longer. But, it's not all bad; U.S. News & World Report noted some baby boomers might also want to continue working because they enjoy filling their free time in this manner.
Whether boomers are entering retirement this year or decide to work a bit longer, a financial advisor can be a helpful resource for managing assets for the years ahead. A professional's assistance can help boomers ensure they continue to grow their retirement nest egg.
One way a professional can be of assistance is to help retirees determine ways to diversify their portfolios, find investments that can support an income stream or make decisions about long-held assets. Some retired individuals may be leery of buying and selling certain stocks, according to Forbes. Deciding to never sell or buy certain stocks could seriously impact an individual's finances and even retirement plans. Flexibility and agility are crucial even during the golden years of an individual's financial lifespan.
"Many boomers would like to live a slower-paced and more relaxing life."
According to U.S. News & World Report, many boomers would like to live a slower-paced and more relaxing life. While baby boomers have the lowest rate of poverty when compared to other age groups, such as millennials, they are also the most anxious. Financial stability and stock market uncertainty contribute to higher stress among those in this demographic.
Investing in a professional financial advisor and utilizing his or her expertise when managing a portfolio may help relieve some of that stress.
As this generation enters retirement and potentially begins embracing a different life pace, they will need to manage their funds properly to finance their lifestyle.
For example, travel and new homes are two popular expenses among members of this demographic.
Baby boomers are looking to travel more in 2015, which means tourist hot spots will likely reap the benefits of an influx of travelers. Many affluent individuals are interested in international traveling and visiting natural wonders of the world. To be financially prepared for these types of adventures, boomers must not only concern themselves with the daily expenses of retirement when considering their portfolios, but also plan for the costs associated with travel.
Another expense many baby boomers will want to consider is the possibility of relocation. The wants and needs of this generation have changed. While many in their youth headed to the suburbs to raise their children, some retirees now yearn for an urban lifestyle in a nicer home. The demand for homes in these metro regions may drive up property values, meaning baby boomers will ultimately need to spend more to purchase the home they want.
While the increased purchase activity may further bolster the housing market, it requires boomers to make good financial now if they hope to fulfill this particular desire.
To support both the financial concerns and desires of baby boomers, this generation would be well-served by enlisting the help of a professional advisor.
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