How a Baby Boomer Can Gain
a Financially Secure Retirement
The Baby Boomers and the Great Recession:
The Baby Boomers are those born between 1946 and 1964. During these years following the end of the World War II, new births increased dramatically and 79 million babies were born in America. A conservative estimate is that this is more than a 30% increase in birth rate than prior decades.
As a generation in the history of mankind, the Baby Boomers are the wealthiest, most active, and physically fit. With their self-confidence, personal growth and optimistic outlook, team orientation, health, wellness and youthfulness, they boosted American consumerism to its pinnacle.
An American author and lecturer, Ken Wilber described this generation’s narcissism and forever young attitudes in his book and coined the phrase “Boomeritis.” They are overzealous in their working out at gyms and taking yoga classes.
As the Baby Boomers are reaching their retirement age in this current rough economy, they are facing many challenges. According to the NY Times Article published in May, 2012, the long term unemployment among the people between age 50 and 65 more than doubled over the period prior to the Great Recession, which started in December 2007. This financial crisis which hit globally is also known as the Second Great Depression, was the terrible game changer for the Baby Boomers.
The 2007 economic crisis, considered “worst” by the top economists since the Great Depression, caused the stock market to crash and trillions of dollars evaporated from 401 K retirement accounts. According to a Wikipedia article, “Aging in American Workforce,” 42 % of those surveyed said they would delay retirement. 25 % claimed they would not retire. According to an article from www.today.com most Americans with 401K and other financial retirement plans have debt payment that eats up their income faster than any savings they have.
The Web of Fears:
According to one definition, fear is a distressing emotion aroused by impending danger, evil, pain, etc., whether the threat is real or imagined. If statics and survey show the threat is evident, and a large percentage of people testify to it, perhaps that threat is real. Does this mean the fear itself is real? After all this situation that you fear has not really occurred yet. In this blog, we will explore how to use the fear of old age to change our lives. We will outwit the fear of old age.
Napoleon Hill spent over 25 years researching in collaboration with more than 500 distinguished men of wealth and success. In “Think and Grow Rich,” Hill describes Six Basic Fears and names them in order of their most common appearance:
- The Fear of Poverty
- The Fear of Criticism
- The Fear of Ill Health
- The Fear of Loss of Love of Someone
- The Fear of Old Age
- The Fear of Death
Among the Baby Boomers or any one older than this generation, the Fear of Old Age is perhaps the most complex issue. When the fear of Old Age begins to strike the Baby Boomer, it is no longer isolated to one category of fear. The Fear of Poverty is inevitable in today’s economy. In today’s economy, people are concerned that they will not enjoy a financially secure retirement. In the recent economic crisis, many of them suffered as much as 60% of value lost in their investments.
With a pandemic spread of debates and cardiovascular disease, compounded by the rise of medical expenses, people are afflicted with the Fear of Ill health and the Fear of Loss of Love. Since the writing of this book, divorce rates in U.S. tripled. This generation has been over exercising and causing joint and muscular injuries. This once proud, youth conscious group are now afraid of being criticized by their younger counter part generation who are optimistic about their future. A rise in cancer and other illness cause the fear of loss of spouses and along comes the Fear of Death.
The Examination of Your Retirement Plan:
As discussed earlier the value of investment went down substantially and many people’s 401 K’s evaporated in value. Evaluate your retirement plan and its financial security measures based on the following criteria:
- Have you seen a financial consultant or have calculated your financial needs during your life expectancy?
- Do you have any or more than one source of residual income?
- Do you have more than 401 K plan, such as saving accounts or traditional retirement plans?
- If you have real estate generating income, is it located in more than one region or country?
- Do you have at least two adult children who have great financial resources and are willing to support you financially?
The more “yes” answers you have, the more strategically situated you are.
Outwit the Fears:
Fear is always seen as a bad indication and people try to deny, run away from or eradicate the feeling of fear. Fear is seen as the emotion to be denied and/or divided and conquered.
When the people are practicing spirituality, a new perspective begins to emerge. Joyce Meyer, a popular speaker and Bible teacher, said, “Courage is fear that has said its prayer.” In their pursuit of spirituality, the students strengthen and develop faculties to receive inner guidance. This may be achieved by meditating and praying to receive a word of wisdom to improve your own capacity to handle and cope with your problems.
Along with spiritual tools, you can learn new scientific strategies in the changed economy.
There is a community of heart-centered entrepreneurs and a simple online academy. This is where you will be able to outwit the fear of poverty in old age.
Accepting your denials, by educating yourself with new strategies and seeking out the support of people who are already living with plans to outwit the problems, we are facing in today’s turbulent world of economy and health, especially with the worldwide pandemic!
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To Your Happiness and Success,
Yukiko Iino