“When I was young, I thought money was the most important thing, but now that I’m old, I know that it is”. ~ Oscar Wilde
Well, here we are — the Baby Boomer generation in full bloom. We consider our lives to be our legacy. So, we spent a great deal of it trying to make it mean something. To make our mark upon the world. We spent most of our adult working lives is spent dealing with issues around our money. How we feel about it? How we think about it? How we use it? And, how we earn it. We rarely think about legacy at all, if ever.
More than 76 million Baby Boomers (those born between 1954 and 1964) living in the U.S. today according to the U.S. Census Bureau. More than 10k Boomers turn 65 every single day.
Only 27% of the Baby Boomer generation believe they will have enough money for health care expenses when they retire. That is a very low number and those Boomers who are tasked with caring for elderly parents, and in some cases, grandchildren, they are going to feel the severe financial pinch even more.
At age 50, the reality of mortality becomes more prevalent. We start thinking of our children and grandchildren and their financial well-being. We start to re-evaluate our own financial situation and the likelihood of longevity. Some of us were wise enough to begin the process of saving for our retirement early, and even more disciplined to carry out our plans. Others of us, found it difficult because of life happening all around us, and dealing with one dilemma after another which kept us in a cycle of putting everything else as a priority. Leaving our financial future on the back-burner indefinitely.
Baby Boomers are faced with some significant challenges, such as caring for our elder parents. Dealing with the possibility of critical illness ourselves, and even caring for our grandchildren because their parents are working two or more jobs to take care of them. Or worse, they cannot provide for them properly.
The retirement of old is gone, where we are sitting in the rocking chair, sipping tea and watching the sunset. Some of us must go back into the workforce to be able to afford the health care necessary at this stage in life. There is nothing “golden” about these years if you find yourself in that place.
So, what solutions do the Baby Boomer have for having more money than life?
Social Security is on its way out. That is a hard fact that many of us were not prepared for, and for good reason. We simply were not told the truth about social security or the economic danger that it faces with fiscal budgeting through our government. However, there are viable solutions to the “Boomers” who arrived late to the retirement savings party.
While most people do not think of insurance as more than a protection for life, it is a life-saver when it comes to building up much needed cash reserves for those moments when life can be challenging, or we are face with being incapable of working to earn money.
The Whole Life Insurance policy provides you with an opportunity to build cash reserves. And, if structured properly, can provide you with a tax-free solution to income growth, distribution, and passing it on to heirs. Insurance companies pay dividends on the life of the policy which compounds over time, add to that the interest that is earned, and you end up with a reserve you can withdraw when you need it most.
Another insurance product that has been extremely popular since the crash of 2008, is the Fixed-Income Annuity (FIA). These are often referred to as “income protection” or “longevity plans”.
Annuities provide guaranteed income for the remainder of your life, If structured that way. Which is another benefit, they are extremely flexible with the immediate or deferred options available. Another benefit is that annuities are favorably treated by the IRS.
You can take a monthly payment from the structured annuity and have income for the rest of your life. Although, each person has a unique situation, and this explanation has been simplified to help you understand the options available, it still goes without saying that creating a longevity plan that includes one or both options is a great solution for someone age 50 to 62 with little or no savings for retirement.
Now is the time to act and see what is available to help you make your “golden years” truly golden. You can begin to set in place a plan that will take care of you in your fifties, sixties, and beyond. Just be determined that your financial well-being is as equally important as anything else.
Let’s talk legacy!
Book your free Legacy Consultation with me, today…
Kim Harris – The Legacy Creator™