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 Forecasts
- 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 Boomers
- 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 asset allocation.
Links To Resources Mentioned
Money Map Retirement Review
1-800-757-0436
Thank you for listening!