As you edge closer to retirement, it would be nice to plan for zip-lining through the jungle or a spiritually-rejuvenating visit to a yoga retreat center. However, most baby boomers have conflicting financial priorities as they age. They worry about adult children, mortgage and education debt as well as medical expenses as they age.
Invest discretionary income
With careful financial goal planning, it’s possible to settle the conflicting priorities. Baby boomers can get back to being part of the trailblazing generation in retirement as long as they save for all of their goals. The key is to save discretionary income now for specific financial needs in the future.
Balance wants and needs
According to a new study by the National Center For Policy Analysis that examined how spending among baby boomers has changed in the past two decades. Surprisingly, boomers are not spending more on entertainment, but they should be able to when they are retired. It’s important to include practical needs as well as dreams when goal planning.
Plan for parental payouts
Many baby boomers should include their adult children in their financial goal planning unless they plan to stop supporting adult children. According to a recent study by Trulia, half of all Millennial home buyers in their 20s and early 30s say they plan to ask parents and grandparents for down payment assistance. Some baby boomers have boomerang children living at home, which can also increase expenses.
Prepare for health costs
Another important priority to include in your goal planning is medical and health care. Health care spending jumped 30 percent for people young baby boomers and 21 percent for older baby boomers, according to the National Center For Policy Analysis study.
For help with goal planning as you grow closer to retirement and figuring out how to invest for financial priorities, contact us.