Updated research – should you be scared? Ameriprise released a great research report that updates their findings from 2007…are you feeling worse off? The data says so.
“In 2007, when the first survey was conducted, perceptions were fairly positive. For example, 51% of baby boomers were “very confident” of their ability to assure “a financially secure life” for themselves and their children. Today, however, perceptions are quite a bit darker: only 33% of boomers are confident of their ability to guarantee their own financial security. And, among their millennial children, perceptions have plummeted even more sharply — in 2007, 58% were very confident of their ability to assure their own financial security; today, 37% are.”
Most research shows Boomers’ number one fear is running out of money. I agree this is a scary time, BUT it doesn’t have to be for YOU.
Here are my recommendations:
1) Action time – whether you have saved a lot or a little, there are a number of smart moves to make the most of what you have. Don’t make a mistake. Get help or educate yourself.
2) Plan – don’t put your head in the sand. Run analysis on your situation to see how long your money last.
3) Find an expert. You can be in control of your financial affairs, but spending time with an expert as you transition into retirement or if you are already retired and don’t have a withdrawal strategy is worth the time and money!
4) Withdrawal strategy – make sure you focus in the areas you can control…be tax efficient keeping more of your money. Make sure you keep your costs low. Stay on top of your plan monitoring your spending and how your money is drawn down relative to your plan.
All these steps should be fun. If you are scared, don’t be. Find a fee-only advisor to work with.
Finally, Social Security is the biggest financial decision a majority of people make. ”Run your numbers.” You will be shocked at the difference between a good and bad strategy. Claim benefits to maximize the money you take from the system could result in a lot more money and make you be more confident.