Baby Boomers is the nickname for the generation of people born between 1943 (or 1946) and 1960 (or 1964).^[1] That means this year, in 2019, the very youngest of the Baby Boomers will turn 55 years old.

Back when they entered the workforce, they probably imagined they’d be retiring with a company pension about now. In 1980, 60 percent of workers had a defined benefit pension (a traditional pension where you know what you’ll be receiving in payments forever). By 2006, only 10 percent had such a retirement plan.^[2]

For those youngest Baby Boomers, the official Social Security Full Retirement Age is 67.^[3] The earliest they can receive Social Security disbursements is at age 62.

That means most of the unretired Baby Boomers likely expect (or hope) to be able to retire in the next 7-12 years.

If that’s you, are you ready?

It seems that every year we hear from some other study detailing how little most Baby Boomers have accumulated for their retirement years…

• in 2014, about ⅓ of all Baby Boomers had nothing saved for retirement ^[4]
• in 2016, only 15 percent of Baby Boomers had over $500K saved for retirement ^[5]
• the typical Baby Boomer who has a 401(k) only has $135K saved – about $600/month income ^[6]
• and, to make matters worse, Social Security disbursements may actually go down during these Baby Boomers’ retirement years ^[7]

You’ve probably seen or heard some frightening statistics. But has it spurred you to action? Have you done anything to address that with regard to your own retirement? Knowing is not the same as doing.

It could feel overwhelming, and may certainly become complicated when we are trying to accomplish these retirement goals:

• to consider all of the possible future events which might affect our retirement years
• to take advantage of any tax incentives for saving before retirement
• to avoid any tax penalties for spending (or failing to spend) after retirement
• to create a livable (and hopefully enjoyable) financial plan for living during retirement
• to minimize the tax burden on our beneficiaries

For many, it can feel like a burden to even get a serious start on retirement saving. Hopefully, that’s not still the case for you, since you’re nearing retirement.

At this stage in your financial life, you should be getting to the point where you want to transition from an emphasis on high growth accumulation of assets into a new focus on slower growth with preservation of the assets you already have. If you have been investing in a target date (or lifecycle) fund, it has probably been making that change for you over the years.^[8]

Have you visited with a professional financial planner to make sure your investments are where they should be considering your age, your total savings, your physical health and life expectancy, your projected income and retirement goals, etc.?

A financial planner cannot wave a magic wand at the end of your working years and suddenly make you into a millionaire if you haven’t already been saving consistently for years. The only way that’s going to happen is if you win a significant lottery prize – but don’t count on that for your future.^[9] What a good planner can help you with is that list of complicated retirement goals we mentioned earlier.

As part of developing a written plan for entering and living through your retirement years, a financial advisor can help you work to maximize the preservation of your savings. That’s important to help minimize the risk that you’ll suddenly see a large portion of your nest egg disappear just before or just after you enter retirement.

Helping people with issues like these is what James Holloway Sr. and the rest of the team at Texas Financial and Retirement do full time. Call 903-534-5477 or email bestclients@texasfinancialandretirement.com today to ask about a free initial visit. If it seems like we’re a good match for one another, we’ll examine your current financial position, listen to your dreams for your retirement, then work to develop a good plan to help you navigate your retirement.

Everyone’s financial situation is different, and everyone has their own picture of what constitutes an ideal retirement. At Texas Financial and Retirement, we want to help you get retirement right, your way.

Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Texas Financial and Retirement, Inc. are not affiliated companies. Investing involves risk, including the potential loss of principal. Neither the firm nor its agents or representatives may give tax or legal advice.  Individuals should consult with a qualified professional for guidance before making any purchasing decisions. 731177

Contributing writer, Howard Thompson