Mar 2, 2018
Learn how your financial life relates to different weather
forecasts. We have tips to avoid bad weather and strategies for
when weather is a certain way. Why not have strategies when things
happen in your financial life? Learn about financial situations
that are unique to baby boomers.
Main Questions Asked:
What strategies should I use when certain financial situations
arise? What financial situations are unique to baby boomers?
Key Lessons Learned:
How Your Financial Life Relates to Different Weather
- The tornado of the financial world. Market corrections can be
like tornados. They don’t happen often, but they can be very scary
events. Emotional changes happen in a person during a market
correction. Having a plan in place with proper asset allocation can
help ease the blow.
- The heat index. The heat index combines temperature and
humidity to see how hot it feels. You could be taking a lot more
risk than you realize. Having a risk analysis with a scatter chart
that measures risk and returns will let you know where you are on
the chart. You want the least amount of risk with the highest
amount of return.
- Black ice. Not knowing what is in your portfolio. Financial
risks that you don’t see and could do damage to your portfolio.
Thinking you are in better shape than you are because you don’t see
the big picture.
Financial Challenges That Are Unique to Baby
- Sandwiched between kids and parents who need help. Retirement
has been damaged by helping kids and/or parents. Most are in good
shape financially and can catch up.
- Fear and angst? Will I run out of money? What about health care
costs? Will the surviving spouse be taken care of?
- Underestimating the amount of help that their kids are going to
get. Baby boomers tend to more for their kids and underestimate the
amount of help they give their kids. They also may not get an
inheritance they are counting on.
- Being overconfident and underestimating the risk they are
taking. You can learn the hard way when a market corrects if you
underestimate your risk. Having a good plan will help with risk and
Links To Resources Mentioned
Money Map Retirement Review
Thank you for listening!