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Evolving Wealth Part 4: Boomer Bucks, Key Financial Strategies for Your Golden Years

by | Saving & Investing

“A big lesson in life is never to be scared of anyone or anything”. (Frank Sinatra)

If you were born between 1946 and 1964, you are part of the Baby Boomer generation. This generation is known to be flexible and robust, having lived through many bulls and bears over the decades.

Whether you’re contemplating retirement or already ticking off your bucket list, here’s what you need to know about managing your money to make the most of life. 

Same same, but different

As mentioned in our previous Evolving Wealth articles, it’s not safe to generalise about an entire generation. Baby Boomers are often split into two different groups with some shared traits:

  • The wise generation (aged 72–79)
    This colourful group grew up during transformative times. They lived through the Space race, the hippy generation and the onset of apartheid. They are celebrated for their aspirationalism, uniqueness, and adventurous spirit. 
  • The vibrant boomers (aged 59–71)
    This subgroup experienced the fallout from the Vietnam war and the impact of sanctions and divestment as local and international opposition to apartheid grew. As a result, this younger generation of Boomers tends to be more questioning and realistic. 

    Despite these variations, the wise and vibrant boomers share some main characteristics, including: 
    • A dedicated and disciplined approach to their work. They are also goal-oriented and competitive. 
    • They like to invest in property, as it’s an asset class they understand. They tend to be risk-averse and often favour unit trusts. Boomers are more likely than other generations to use professional advice for their retirement planning. 
    • They appreciate travel and rich family experiences.
    • Although they may be slower learners, they are unexpectedly tech-savvy and dedicate themselves to continued online learning.
    • Regarding value systems, they’re loyal, respect authority and have a strong sense of civic duty and community involvement.  
Navigating retirement in a world of rising healthcare costs

Retirement can stretch for decades these days, making planning beyond traditional company pensions essential. We highly recommend that Baby Boomers continue to work for as long as possible to accommodate rising healthcare costs and general living costs. 

Mastering money moves for a prosperous future

Here are some other savvy moves for Baby Boomers to make: 

  1. Don’t skip estate planning
    Baby Boomers often consider themselves invincible, but realistically, having all your affairs in order becomes more important the older you get. This includes maintaining a valid will (Last Will and Testament), general and bank powers of attorney and a Living Will. Also remember to check all the beneficiaries on your life policies. 
  2. Consider downsizing
    Downsizing is challenging, as you may need to let go of many items that bring back happy memories. But once you’ve gone through the process, and simplified your life, you’ll feel a massive weight lifting from your shoulders. 
  3. Life or Living Annuity?
    Deciding between a living annuity and a guaranteed annuity can be daunting. Each option has its pros and cons, so consult a professional to determine what’s right for you.
The bottom line: It’s your time to shine 

You’ve spent your life working hard and thinking out of the box, and retirement should be no different. With careful planning, the years ahead can be some of your most rewarding. Ready to take charge? Please get in touch with us if you’re a Baby Boomer and want to discuss any of the above.

Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.

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