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5 Money Moves Baby Boomers Need To Make

5 Money Moves Baby Boomers Need to Make

Complete your emergency fund In a 2016 GoBankingRates survey, 33% of baby boomers aged 55 to 64 had no money stashed away in savings, while 36% had less than $1,000. That's why, regardless of age, you still need enough emergency savings to cover three to six months' worth of living expenses. Currently, anyone aged 50 and over can put up to $6,500 a year into an IRA and $24,000 a year into a 401(k). Even if you've been saving throughout your career, now's the perfect time to boost your retirement savings rate because, conceivably, you only have a few more years to fund your account. If you have a fully loaded emergency fund, and your IRA or 401(k) balance is healthy, it pays to pump some extra money into your mortgage so that it's paid off by the time you retire. This way, you'll be able to stretch your retirement income further once you do stop working. Get out of credit card debt Believe it or not, seniors aged 65 and over carry more than $6,300 of credit card debt on average -- and that type of debt can be a huge drain on your limited retirement income. In fact, Genworth's 2016 Cost of Care Survey estimates that it typically costs more than $43,000 a year to reside in an assisted living facility, and $82,000 a year or more to live in a nursing home. That's why it pays to sign up for long-term care insurance in your 50s, when it's cheapest to secure coverage. Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after.
Here’s Why 43% Of Baby Boomers Could Wind Up Cash-Strapped In Retirement

Here’s Why 43% of Baby Boomers Could Wind Up Cash-Strapped in Retirement

Social Security is only designed to replace roughly 40% of the average worker's pre-retirement income. We're not saving enough The Economic Policy Institute reports that an estimated 41% of baby boomers have no money saved for retirement at all. The median savings amount among workers aged 56 to 61 is a measly $17,000, which is a drop in the bucket. That may sound impressive, but it won't get a typical senior very far. Let's also assume you and your spouse are each eligible to receive $1,360 a month in Social Security benefits, which is what the average beneficiary gets today. Add in $2,720 from Social Security benefits ($1,360 x 2), and you have $3,401 per month to spend, or $40,812 per year. If you're aged 50 or older, you can put up to $6,500 a year into the former and $24,000 a year into the latter. If you have a 401(k) and you manage to max it out for the next 10 years, you'll have another $302,000 in retirement savings to work with, assuming your investments generate a moderately conservative 5% average annual return during that time. If you can't max out your retirement plan contributions, save whatever you can, even if it's only a few thousand dollars a year. That's why the expert financial planners and portfolio managers from Motley Fool Wealth Management have put together an exclusive video seminar on addressing our clients' biggest questions… Like what (and when) to sell in a bull market… to why all dividends aren't created equal… to the three critical questions you should be asking your financial advisor… This free video has you covered so you can weather the market in stride.
Here’s A Thought: You DO Have ‘enough’ To Retire

Here’s a thought: You DO have ‘enough’ to retire

I never liked Pappagallos, but it didn’t matter: I was in it for the race, not the shoes. The fundraiser was a good cause, but in my mind, it was also a contest. Stuck in the back was a 1992 Wall Street Journal interview with John Updike, in which the novelist railed against what he considered a spiritual emptiness at the core of American life. I can no longer compete like that. As a writer and editor, I did a full 180-degree turn from covering the business world to writing a book for a less-heralded, and definitely less prestigious, audience—middle-school children. Instead of competing with others, they take on challenges suited to their particular disabilities and find satisfaction in their successes, however small they might seem to an outsider. I am committed to these organizations, grateful for the opportunity to work with people I like and respect. Indeed, I want them to look and feel good, because their friendships will keep me engaged in the years ahead. Updike’s observations clarify what I now know: that interior time spent appreciating “enough” is a far better investment than time spent comparing one’s achievements to others or struggling to cross some distant finish line that is always just out of reach. Our condition, in Updike’s words, is “one of anxiety, of lostness.” Life is “a search [for a] sense of having found home.” In retirement, I have found home.
Hey, Baby Boomers — Summer Camp Isn’t Just For Kids Anymore

Hey, baby boomers — summer camp isn’t just for kids anymore

Courtesy Amy Temperley/Aging Is Cool Linda Levy jumped at the opportunity to attend Camp Meraki near Austin, Texas. As a kid she went to summer camp every year and later she worked as a camp nurse at multiple camps. The program, which was run by Aging Is Cool, an Austin, Texas-based group that organizes social and physical activities for retirees, was like the summer camps she attended as a kid in many ways. “Half of our elder campers were campers here back in the days of black-and-white photographs,” Brock said. “So we had a built-in audience of adults who wanted to come to camp.” Some of these summer camp programs targeting older adults are run by kid’s camps in conjunction with their youth programming, but others are organized by senior groups across the country during less busy times of the year. Aging Is Cool held its first session of Camp Meraki this summer for people over the age of 60. “We’ve just been overwhelmed by people reaching out and asking when they can come to camp,” Temperley said. Attending summer camp later in life isn’t just about participating in childhood activities. For Gloria Lloyd, a retired public school teacher who attended Camp Ocoee with Boomers Together, going to summer camp was also an opportunity to cross an item off her bucket list. The opportunity to make new friends especially rang true for Levy, who recently moved to Texas to be closer to family.