Baby Boomers could very well be the generation that has worked the hardest in their professional careers. However, despite this, many Boomers have not been able to save enough to enjoy a relaxing retirement. There is in fact a high percentage of Baby Boomers struggling with financial issues. Many of these they will not be able to sort out before they retirement.
Many independent studies have been done on the Baby Boomers retirement situation and concluded that about 1/5th of Baby Boomers might be forced to retire before they have paid off their mortgages, while others will not have enough funds for retirement for other reasons.
But, do not worry yet. Here, we have jotted down some vital tips that can help Baby Boomers augment their retirement savings and improve their current retirement situation.
It’s Time To Re-evaluate Your Assets for Retirement
Considering the fact that you are moving ahead towards retirement and old age, NOW is the right time to evaluate your home. You might not need nor be able to maintain a big house.
So, if you own a big house that exceeds your needs and you are still making mortgage payments on it, it could be better to downsize to something smaller and with no mortgage.
Don’t Invest Aggressively To Make Up For The Lost Time
What’s gone is gone. You cannot get that time back. But, at the same time, if you think that you can make up for the lost time by aggressively investing in some tempting stocks or other entities, you would likewise be wrong. Do not make risky investments as that would be your second terrible mistake.
Undoubtedly, an all-stock portfolio is better than others. But, you may not be able to manage the ups and downs that come with it. So, even if you are planning to invest, its better to play it safe. Don’t risk your wealth on anything that is too uncertain.
Reconsider Your Insurance
Whether it’s your life, car, or home insurance, it is now the right time to reconsider all your insurance policies. There are some lucrative policies for people above 50. You can choose one of these policies to sell for cash right now. Also, if your children are included in your policies, you may wish to discontinue sell those.
Your children are grown-up. They can take care of themselves. This frees you up to sell your policies that will prove to be extremely supportive in your retirement years.
Work On Enhancing Your Health Care Savings and Opt For Real “Good” Healthcare Plans
As medical costs continue to increase at an accelerated pace, this is one of the expenses which cannot be avoided. Itis better to start planning for your health care plans today. Look for health savings accounts which offer tax benefits and also look for the best health care plans with maximum benefits but low premiums that you can find. But, above all, the industry experts reckon that Baby Boomers need the right financial advice to ensure that they get the best in their retirement years.