Millions of Baby Boomers are rapidly reaching retirement age in a “silver tsunami” that is placing a renewed focus on how this generation feels about their finances. According to Charles Schwab’s Modern Wealth Survey, 66% of Boomers believe they are in a better position to reach their financial goals than previous generations.
How did this generation find themselves to be so well positioned financially?
A majority of Boomers feel they have a positive relationship with money, which gives this generation a strong financial foundation. In addition, more than 3 in 5 Boomers (63%) are actively investing today, and they overwhelmingly expressed confidence in their investment strategy and ability to reach their financial goals. Boomers attribute this confidence to having more ways to build wealth (68%), more investment options (64%), and more accessibility to investing in general (58%). Financial confidence doesn’t always come easily, but we hear common themes from those who share it.
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1. Do your research and seek professional advice
In today’s world, there is an overwhelming amount of information online, and it can be difficult to discern what financial advice is trustworthy. While “finfluencers” may be gaining traction among younger generations, Boomers are most likely to use a financial professional/institution (such as a financial adviser, investment firm, or accountant) for financial advice. They noted the top reasons for trusting these professional sources are their proven track record of success (53%) and the proper financial certifications and credentials (45%).
A financial adviser can help you navigate the complex world of investing, but it’s important to carefully determine which professional resource is right for you and best meets your needs. Are you seeking help with budgeting and savings goals or more complex guidance around financial planning, wealth management and tax planning? If you are seeking assistance with financial decisions, you will want to understand the different designations you encounter and create a list of questions to ask a potential adviser to find the right fit.
2. Have a financial plan
When it comes to managing your finances and preparing for retirement, the quote “if you fail to plan, you plan to fail” could not be more true. A financial plan is essentially a roadmap to attain your goals. It is easier and more affordable to get a financial plan today than it’s ever been before, whether you get started with a do-it-yourself digital financial plan or have an in-depth conversation with a professional.
Boomers noted that once they created…
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