, January 4, 2011 7:50 am
I hope you were able to rest a bit during the holidays. Happy New Year! Now, let’s get on with some Money Tips Online.
In the next 18 years, 10,000 Americans will turn 65 every day! Baby Boomers are used to wanting more out of life, and for living life on our own terms. We do want to have it both ways…have our cake and eat it, too (and freeze a slice for down the road). Well, here’s a slap so you’ll snap out of it! Most Boomers have no idea just how much money they’re going to need in retirement.
A recent study by the Employee Benefit Research Institute estimates that about half of the Boomers between the ages of 56 – 62 will face a financial shortfall in retirement. They won’t have enough dough to cover their medical costs and core retirement expenses. Just over 40% of those between 46 – 55 are going to have the same problem. But there’s still time for most to rectify this problem: be more pragmatic about your spending…tighten your belt…make adjustments.
Separate “basic needs” from “perks”. A weekend getaway or coloring your hair isn’t a necessity (really). Aren’t you keeping up? Gray hair is in. 60 is the new 40. Consider the possibility that you may have to downsize and move to smaller digs that costs less to maintain. Start getting used to the idea that you may have to work a couple of years longer than you originally thought..maybe longer. If you don’t change your mindset, you will continue spending your retirement assets today. That’s probably not a plan that you want to subscribe to. Start the new year off right: do a budget, cut your expenses and start saving more. You’ll be glad you did. Until next time, here’s to good planning!