« BackArticles

Boomers...Go-Go...Slower Go...Real Slow

On January 1, 2008, the first of the Boomer Generation (born 1946-1964) began walking across the stage of life…a wave of at least “retirement eligible” people like this nation has never seen or experienced before! The DAY OF EMANCIPATION is in view!

Actually, “retirement thought processing” should begin around 55-58 to make sure that there is a great plan in place to achieve the goals, dreams, and objectives that one has for this great 2nd half of life. If the reader is 58+, take hope, there is still time to plan but please don’t delay much longer to start the process. With life expectancies on the rise and the great possibility of one of the spouses living to 93 or more, strategies for the “long term” are most necessary. Being able to do exactly what a person wants to do into the future is my kind of guy and my kind of gal! I have clients that are playing golf at 92…driving R.V.s at age 100 (look out)…starting new careers at 70+…WOW!

My desire, as I write this commentary as well as coach my clients, is that every person identified either as a “Boomer” or a “Retiree” (by age) should have a Sense of: 1) Direction; 2) Security; and, 3) Satisfaction. Life doesn’t seem worth living without a Sense of these three dynamics!

In my last article by this same title, I addressed some of the challenges that relate to the “Go-Go decade or so” of Retirement (let’s start calling it “Emancipation”). The biggest risks in Phase I are market related as was stated and explained in my last article. Market risks certainly continues into the 2nd and 3rd phases of Emancipation living, but as the age increases, the risk factor seems to shift to health-care spending. There is a report by the Tower Group which estimates that a retired couple age 65 today will need to set aside around $200,000 for future medical costs not covered by Medicare. Another risk in Phases II and III is Inflation (oh yes, Inflation will always be around to some degree)!! At even a modest 3% average annual inflation rate, a dollar will lose half its purchasing power over 20 years. So, a couple who might have a cash flow need of $5,000 per month now may easily need $10,000 per month in the future…just to keep the same lifestyle. STRATEGIES need to be put in place for the needed amount of income at the beginning of EMANCIPATION life (and this is fairly simple), but the CHALLENGE is to be able to put STRATEGIES in place to supply that greater monthly need of income out there in the future. (YOU SEE, THERE JUST HAS NOT BEEN A GENERATION OF EMANCIPATED (RETIRED) PEOPLE WHO HAVE LIVED AS LONG AS IS EXPECTED OF THE BOOMERS IN A LONG TIME…back to Old Testament days maybe!!!).

It is extremely important to start Retirement planning around the age of 55…not 65! Think with me. A 401-k, for example, has its greatest growth spurt (under normal conditions) in the last 5-10 years of the working life of an individual. This “growth spurt” is not necessarily due to workers putting in larger amounts of contributions in their last 7-10 years before retirement, but the spiraling growth is largely due to the fact that “time and interest do wonders to money”…it’s the “snowball effect” happening to the account. Well, can anyone say “Enron”? Yes, we all remember! Workers moving toward Emancipation Day were depending on that large bucket of money they had amassed in their 401-ks to be available when they launched into their Emancipated Lifestyle. But, if the bucket “crashes” to a much lower amount just before they “sever service” (retire), what a tragedy and what an emotional catastrophe!! Therefore, 5-10 years BEFORE the desired Emancipation Day, one must begin to strategize relative to keeping the “nest-egg” one has worked so hard to accumulate!!!

It is strongly urged by this writer/advisor that everyone 55+ should begin working with someone who has “qualified advisor credentials” in Retirement issues and strategies. THERE IS MUCH MUCH MORE TO PLANNING AND LIVING A WONDERFUL EMANCIPATED LIFE (retirement) than simply putting one’s money in a certain “allocation strategy” developed by an advisor or by some “website software” and feeling that “all is well”!!! I have assisted hundreds of families as they have moved from the early days of Emancipation to the later and last years of life, and believe me, life has its constant quirks and specialized surprises!!! The small costs of having a Life Coach, one who has “been there, done that” through the lives of others (clients), will be well worth the “peace of mind” that comes when someone is truly watching over you, guiding around pitfalls, caring for you and your family, with a heart for your best interest.

You may ask: “Are there really people in this world who care about me and not just their own best interests”? My answer: “It may seem that there are not many because of all the scammers and hawkers who have taken advantage of people in retirement and have just been interested in “selling their products”! BUT, YES, there are people who are qualified to assist you and truly care about you! (AND, DON’T YOU DARE PLAN YOUR FUTURE ONE SEMINAR AT A TIME, ONE FREE MEAL AT A TIME, ONE SLICK TALKER AT A TIME…this leads to DISASTER!!!). YOU LOOK FOR and find an advisor or Life Coach who:

1) IS COMPETENT – knows (by experience) what he/she is doing in Retirement Planning

2) YOU FEEL COMFORTABLE WITH

3) YOU HAVE CONFIDENCE IN

4) WILL LISTEN TO YOUR GOALS, DREAMS AND OBJECTIVES

5) KNOWS HOW TO PLAN FOR YOU TO HAVE THE ABILITY TO REACH YOUR GOALS, DREAMS, AND OBJECTIVES

6) WILL MAKE SURE ALL YOUR LEGAL PAPERS ARE IN PLACE AND WELL COORDINATED WITH YOUR FINANCIAL AFFAIRS

7) TRULY CARES ABOUT YOU – AND ALL THE MEMBERS OF YOUR FAMILY

8) HAS A “TEAM” OF PROFESSIONALS WHO IS OVERLOOKING YOUR GAME PLAN

9) CAN COUNSEL / ADVISE YOU ON LIFE ISSUES THAT ARE NOT NECESSARILY CONNECTED TO YOUR MONEY, BUT YET WILL INDIRECTLY AFFECT YOU LIFE AND REACHING YOUR GOALS.

I saw an advertisement somewhere, and I cannot remember where, but it seems so true due to what I know about the issues of Retirement living. The little statement went something like this: “Retirement Income Planning IS Brain Surgery. How Steady Are Your Hands?”

I was reared in a home that taught “integrity was more important that money”. Even though the world seems to have lost a lot of its old-fashioned honesty and care about one’s fellowman, there are still people in America with “old-fashioned” values. I URGE YOU TO FIND THAT ADVISOR / COACH THAT YOU FEEL CONFIDENT HAS THOSE OLD-FASHIONED WHOLESOME VALUES, yet has leading-edge creativity of Retirement (Emancipation) Planning, and allow him/her to guide you to your goals so you don’t have to struggle and “wonder” alone.

Ray Griffith is CEO of the Granite Group of Companies, President of the National Association of Insurance and Financial Advisors (Ft.Worth), Founder of The Women’s Empowerment Forum, President of the Greater Texas Educational Institute, member of the Real Wealth Radio Network, and is an Investment Advisor Representative.

Securities and Investment Advisory Services offered through Woodbury Financial Services, Inc., Member FINRA, SIPC, and Registered Investment Advisor, 1670 Keller Parkway, Suite 200, Keller, Texas 76248 (817 379 9323).