Over the past year, I have watched my investments plummet then make a feeble attempt at recovery, only to nosedive again this past week. The economic news mirrors my concern. We might be in an economic bubble or we might be on the road to recovery. Who knows? Apparently no one can say for sure, despite their educational background or their position of power. I question whether my IRA will ever be healthy enough for me to retire on. Then, I tell myself not to worry, retirement is highly over-rated and what would I do with all that time on my hands anyway, especially if I can’t afford the lifestyle I want to become accustomed to. See? Even my sense of humor is suffering from this financial burden.
I am not sure who is to be trusted anymore. I was struck dumb, when I heard that the bank executives who put us in this economic tsunami must be given their million-dollar bonuses or they will go some place else to work. I say, “Let them go!” These people have proven to the world that they are the epitome of incompetency. I don’t understand why they kept their jobs in the first place, and I really don’t understand, knowing their history, who would hire them now. We have finally reached that point where the world has turned upside down, common sense has been abandoned and logic is non-existent. Hey folks, Nero is back, and Rome is burning.
I’m not one for idly standing by and yet, where my finaces are concerned, I must confess, I have taken the passive road. I have trusted strangers to turn my hard earned money into a comfortable nest egg. I hypnotized myself into believing that since the investmenet firm had an old, established name, it was a safe place to invest. Silly me. Over the years I have learned that the only one who can take care of me the way I want to be taken care of, is me. And if I want to see a safe, secure financial future, than it is up to me to take the necessary action to make it happen. I have made a commitment to handle my own financial future. I have enrolled in investment classes and when I am done, I will have the knowledge I need to chart my own path.
Wish me luck and follow my progress here.
I love what I do, I make decent money, my kids are grown up and independent and I am strong and healthy. Call me oblivious, but I was at a point in my life where I had few worries and every day held a new promise. It’s strange, but when the economy was stable and my investments were growing, I hardly gave much thought to retirement. I knew that I was going to wait until I reached 66 but I didn’t think much past that. However, that seems to have changed considerably since this past October. Lately every thought in my head, every plan that I make seems to be overshadowed by the damage done to my retirement fund. I can’t stop thinking about my future; will I have enough money or will I have to work longer? With the contributions I have been making over the years, I always assumed that I would have more than enough to settle into my golden years without worry but, I can’t loose this nagging feeling that it isn’t going to be enough. I have talked to friends who feel the same way too. It’s such a rude wake up call that none of us were expecting and it is coloring every move we make.
An article in US News & World Report reminded me to let go of these negative thoughts because there are still many reasons to be optimistic about my retirement prospects. One of the best reasons is that Social Security guarantees cost-of-living increases. I had forgotten this simple fact and even though most years that increase isn’t much, it does help. The government is going to have to find a better way to manage Social Security, but they are never going to do away with it for those of us who have already paid into it. You know it’s funny, but as I read this article, I also realized that I don’t need to start drawing down my 401K immediately after I retire. I can wait until I am 70 1/2, so that still gives me 10-1/2 years to recoup my losses (not 6) if I need it. Compound that with the fact that I am still investing regularly and getting bargain prices, means that my losses should evaporate much more quickly when the economy begins its upswing. There are still some concerns I have about medicare and health insurance in general, but I need to see what this new administration proposes before I decide what I need to do about that. Right now, while I am working, I have good insurance so I don’t need to worry about that for a while.
I know we are in for a bumpy ride and a lot can happen in the next six years but I think that things are going to be financially okay for me and I will be able to stick with my retirement goals. If not, I will work another year or two. After all, it’s not the worst thing that could happen.
In October, when the stock market did a free for all, Jane Bryant Quinn did the practical thing She panicked. I think many of us can identify this past October with that feeling. Traditional investment planning lulls us into a sense of security and creates an illusion of stability. But nothing happens every year exactly as planned. We do know that life is uncertain, and that uncertainty for most people especially applies to managing their personal financial affairs. It seems that even during normal economic times, some investors find themselves overwhelmed with information and conflicting advice while others don’t have the time or interest to manage their personal assets and liabilities in a disciplined manner. We create the best investment plan we can with the knowledge we have, set it aside with the faith that we are investing enough money and pat ourselves on the back when those investments grow. Then when the bears take over on Wall Street, we feel overly anxious because all of a sudden, our financial future is staring us in the face. What was gently tucked into the recesses of our minds now colors every move we make. Read more »
Downsizing, Upsizing and Rightsizing. Boomers were the first generation to be able to graduate from high school and enter the job market expecting to earn a living wage. Now, they are the first group of employees that are perceived by management as ‘LESS’ valuable than younger, entry level, lower paid Gen Xer’s entering the job market today. You probably know of at least one baby boomer who was forced to take early retirement or who was forced out of the job market due to cut backs and streamlining. These boomers find themselves too young to receive any social security benefits and apprehensive about going back to school to acquire new skills. But, without a college degree or high technology skills, many are currently working in lower paying jobs or sitting home frustrated that they want to work but can’t find employment. Compound this situation with the current inflation and a failing economy and the question arises, will our generation, the one that was promised a better life than our parents, end up worse off than our parents? Read more »
I just read some really harsh and little known statistics about the Baby Boomer generation that I want to share with you. A quarter of the more than 1 million Americans who filed for personal bankruptcy in 2007 are 55 and over. They are the fastest group of bankruptcy filers in America. In fact according to an AARP study conducted last year, personal bankruptcy filings soared by nearly 151% among people 55-64 and by almost 178% among those 65 to 74. People 75 and older saw the highest jump in filings, a whopping increase of 567% from 1991 to 2007. These are astonishing statistics, especially for the generations of people who grew up thinking that bankruptcy was a shameful occurrence. The reasons for bankruptcy and financial crisis are different for those over fifty compared to those who are younger. Most often it’s not due to excessive spending, but rather the bankruptcies may be attributed to high health care costs due to serious illness and expenses not covered by insurance. Also, some seniors go into debt trying to help their children or grand children during these difficult times. No matter how old we get, it is in our nature to take care of our children first. Those over fifty also tend to use their credit cards to charge necessities like groceries, unanticipated home repairs and especially medical expenses and prescription drugs. Read more »
Hats off to AARP for debunking another myth about retired people. The conventional wisdom about the way retirement affects married couples goes something like this: Once the husband and wife find themselves stuck in each other’s company every minute of every day, they drive each other crazy and fretfully yearn to return to work. Independent researchers for AARP - The Magazine did a phone survey of more than 1,00 retirees between the ages of 55 to 75 years old. What they discovered is that relationships remained as strong as they had been or became even stronger once these people retired. In fact, 74 percent of the respondents said they were happier in retirement than they had been when they were working. A second honeymoon but with a different twist from the first. This time around, however, the joy of sex seems to be replaced by the joys of traveling, eating out, exercising, volunteering, pursuing their hobbies and what else, but surfing the Internet. Go figure, reaching the big “O” is now replaced with shopping on-line at the big “O.” Read more »
Cleaning out my old emails this morning, I came across one from a good friend of mine and I would like to share it with you. It’s in response to a question I positted a while back about getting older and it exemplifies the adage of aging gracefully. She writes…..
I would never trade my amazing friends, my wonderful life or my loving family for fewer aches or a flatter belly. As I’ve aged, I’ve become kinder and less critical of myself. I’ve become my own best friend. I don’t chide myself for eating that extra cookie, or for not making my bed every morning, or for buying that silly cement turtle that I didn’t need, but that looks so avant garde in my fern bed. I am entitled to a treat, to be messy, to be extravagant. I have seen too many dear friends and loved ones leave this world too soon, before they understood the great freedom that comes with aging. Whose business is it if I choose to read or play on the computer until 4 a.m. and sleep until noon? Who even cares? Read more »
Not Your Mother’s 60
They don’t call us the Boomers for nothing. We are the generation that was born into a post-war society on the verge of an all time prosperity this country had never known before. We are the first generation that grew up with electric vacuum cleaners and ovens, TV dinners and fallout shelters in our basements. We are the original consumer generation with a purchasing power our parents had never dreamed existed. We are the generation that earned world-wide respect for America. We are the generation that created Rock and Roll. And now, it only seems right, we are the generation that has different ideas than our parents had about aging and retirement. We Boomers are not in our twilight years. This is our time to have fun, travel, try new hobbies and play. I hope that when you visit my blog, you will find something that inspires, prods a memory or just brings a smile of understanding.
The elections are finally over and the United States, with much help from our generation, has elected a new president. With this new president comes the pro-offered promises of change and hope and a new vision of America; but what impact will this new administration have on retired and near-retiring baby boomers? Just like everyone else caught up in the economic woes, baby boomers are facing their own set of problems. Not only have we taken a big hit on our investments, but some of us now find ourselves helping out with family members who have lost jobs or gone into mortgage default. En masse, those of us still working are rethinking early retirement and looking at the prospect of working two to five more years just to recoup our investment losses. Many of those baby boomers who have retired are now looking for part-time jobs in order to make ends meet. So, President-elect Obama, what do you have in store for us? One campaign promise that you made was that seniors making under $50,000 would no longer pay income tax. However, many Democrats think that this is not only a bad idea, but low on the list of things that need to be done. Read more »
On AC360, Suze Orman (Suze Orman on your fears) said that fear and panic was counter-productive when it came to the current market situation. It’s not fear and panic that I feel. Almost all of my working life, I have been investing with the idea of retiring at 62 (2 years from now). Then George Bush took office, the Republicans were in charge of Congress and I saw very slow growth in my investments and I said, “No problem, I can work until I am 65. After all, I like my job and it keeps me on my toes.” Now, I see myself working until I am 70+ and the idea makes me furious. I feel violated by the financial corporation’s irresponsibility. This is the same violation as I thing I would feel if someone broke into my house and stole 30% of everything I own. It’s not that I won’t survive. I’m not afraid of that. After all, I have my health and as I said, I have a great job. It’s just that the decisions about my future are no longer mine to make. Like most victims, I feel this need to be vindicated and I don’t believe this will happen any time soon. What about it? Do you see any of these executives being prosecuted or held accountable in anyway? I know that some of them will lose their jobs, but thanks to their golden parachutes, I doubt if they will be put out on the streets. More likely, they will take extended vacations on tropical islands and wait out the storm.