Here in the wealthy enclave of the San Francisco Bay Area, it seems and feels like ground zero for the everlasting internal debate between quality of life vs. standard of living.
Here in the wealthy enclave of the San Francisco Bay Area, it seems and feels like ground zero for the everlasting internal debate between quality of life vs. standard of living.
We are currently in the midst of one of the largest transfers of wealth from one generation to the next that our country has ever witnessed. That’s because as parents of baby boomers start to pass, the legacies they are leaving behind in the form of inheritances are in the trillions of dollars.
Last year alone in our financial planning practice, one out of three new clients contacted our practice as a result of receiving an inheritance. And in many cases, the inheritance they received was a game changer - meaning the amount received was large enough to create financial independence.
If you’re a single boomer and find yourself happily or begrudgingly back in the dating scene, it’s only a matter of time before the right person comes along and captures your heart as well as your imagination.
For the next 19 years, close to 10,000 boomers will turn 65 everyday and the majority will also be heading into retirement.
If you’re like the majority of people, come the New Year, you feel almost a primal urge to do something about your finances.
It may be something simple like checking to see how your investments performed last year or perhaps something more ambitious like developing a comprehensive financial plan.
What exactly you do is not the point, but definitely do something, anything, just get started. What you’re looking to do is get into the habit, at least once a year, of investing some time in not only how your relationship with money is going individually as well as with your partner, but also in assessing the previous year from a your money and your life holistic perspective. Call it the year in review.
If you’re a baby boomer, you most likely grew up with the notion that men are born with a natural ability to be good at managing money and investing.
During their working years, baby boomers have invested a significant portion of their retirement savings in stocks, boosting equity valuations above historical averages for the past 30 years. As the baby boom generation retires and begins spending from their investment portfolios, future equity returns could decrease. With that in mind, it’s crucial that boomers nearing retirement develop retirement income strategies with prudent as well as realistic expectations of future investment returns.
The Role Demographics Will Play
And now for the bonus round - a few multiple choice questions about Americans and retirement.
Imagine for a second you and your life mate are headed out on a 30+ year journey, one that you had been planning to take for as long as you both can remember. You’ve dreamed about all the places you’re going to visit and the people and friends you’re going to meet along the way.
You know given your age, this will likely be the last, yet greatest adventure of your life with memories and experiences you’ll cherish forever. And vital to the success of this journey will be the confidence and knowing that the hard earned money you saved your entire working life will last the duration of your great adventure called retirement. You also know that once you set sail for the great unknown, there will be no chance for a do-over 10-15 years from now if you failed to properly plan.
