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. A majority of Boomers feel they have a positive relationship with money, which gives this generation a strong financial foundation. 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.
1. Conduct Your Research and Seek Expert 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” gain traction among younger generations, Boomers are most likely to use a financial professional or institution for 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 determine which professional resource is right for you and best meets your needs.
Are you seeking help with budgeting and savings goals, or do you need more complex guidance around financial planning, wealth management, and tax planning? If you are seeking assistance with financial decisions, understanding the different designations you encounter and creating a list of questions to ask a potential adviser is crucial for finding the right fit. This methodical approach ensures you engage the right professional for your financial journey. While the online world offers abundant resources, a trusted financial expert can provide personalized advice tailored to your unique financial situation and goals.
2. Create 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 truer. A financial plan is essentially a roadmap to attain your goals, and it is easier and more affordable to get a financial plan today than ever before. Whether you start with a do-it-yourself digital financial plan or have an in-depth conversation with a professional, taking the first step is crucial. Boomers noted that once they created a financial plan, they felt more in control of their finances, and in turn, more confident they would reach their financial goals.
While more than one-third of Boomers have taken the necessary steps to document their financial plan (38%), another third (34%) have only thought about their financial goals. It’s essential to discuss your financial goals and ensure you have a plan in place for your situation. Several firms offer free online tools and education, and employ Certified Financial Planners® that you can meet with on a one-time or ongoing basis. This proactive approach can make a significant difference in achieving your financial aspirations and maintaining confidence in your financial journey.
3. Develop an Investment Strategy
An investment strategy goes hand-in-hand with a financial plan. Schwab’s first investing principle is to establish a financial plan based on your goals, as these will help guide how conservative or aggressive your strategy should be. Are you saving for a dream trip, a second home, or perhaps a child’s education? Knowing your goals will help you determine if you need a strategy focused on growth or stability. The next step is to build a diversified portfolio based on both your capacity to take on and tolerate risk. This strategic approach can help you achieve your financial objectives while managing potential risks.
While most firms offer the option to invest on your own, consulting a financial adviser can help simplify the process of identifying the products and services that best meet your needs. A professional can help tailor an investment strategy that aligns with your specific goals and risk tolerance. Regularly reviewing and adjusting your investment strategy is key to staying on track with your financial goals, ensuring your portfolio remains aligned with your evolving financial circumstances and market conditions. This ongoing engagement is crucial for achieving long-term financial success and confidence.
4. Remain Engaged
Millions of Baby Boomers are swiftly approaching retirement age, ushering in what some call a “silver tsunami.” This demographic shift is prompting a renewed look at how Baby Boomers view their financial situations. According to the Modern Wealth Survey by Charles Schwab, around 66% of Baby Boomers feel they are in a stronger position to achieve their financial goals compared to earlier generations. Many Boomers indicate that they have a positive relationship with money, which has resulted in a solid financial foundation for this generation. Notably, more than three in five Baby Boomers, which accounts for 63%, are actively investing at present. They have shown a significant level of confidence in their investment strategies and their capability to attain their financial objectives. This confidence and active engagement in investing suggest that Baby Boomers are well-prepared to navigate their financial futures as they transition into retirement.
