Booming Encore’s Post

"You really, really, really, really shouldn’t be taking out your retirement for a house.” In Ana Teresa Solá’s latest CNBC article, Stacy warns against tapping into your 401(k) for a home purchase. Despite the temptation, experts caution that the long-term consequences could outweigh the short-term gains. Find out why dipping into retirement savings might not be the best move for aspiring homeowners. #FinancialAdvice #RetirementPlanning

How do we define if someone is living comfortably in retirement? Too often, it's based on subjective responses. As shared in the article written by Andrew Biggs and published in Forbes, when retirees were asked whether they were finding it difficult to get by, just getting by, doing okay or living comfortable, 86% of the 65- to 74-year-olds reported either doing okay or living comfortably. But when they looked a little further into this, often pride stopped them from necessarily being honest about their financial situation. But when posed with the following specific criteria; “A financially secure retiree can be defined as a person who has no credit card balances, no medical debt and no recent use of predatory financing [meaning, pawn shops or payday loans], and can pay all bills and manage a $400 emergency.” . Only 51% of retirees could meet this standard. So does this mean we have a retirement crisis on our hands? Not necessarily. For instance, they also discovered only 58% of 25- to 34-year-olds could easily cover a $400 emergency expense which actually increased with age - 77% for those 65 to 74 and 82% for those 75 and over. So what is the lens we should use as to analyze financial security in retirement? It seems there are people at many different ages who are struggling financially. Those in retirement aren't necessarily worse off than anyone else. Maybe we need to take a look at the situation as a whole, rather than just one specific age group and eliminate the financial insecurity for all. https://lnkd.in/eCccft8W #babyboomers #boomers #retirement #retirementplanning #aging #longevity #finances #money #savings #generations

Many Americans who are within 10 years of the average retirement age are significantly below the recommended target of having eight times their annual income saved. This means many Millennial and Gen Z workers can look forward to helping support their elder family members in the coming years. It’s not too late to get back on the right financial footing for a comfortable retirement — learn more in this piece from Newsweek: https://bit.ly/3WhNhfA #Advisor #retirement #savings #millennials #GenX #GenZ #eldercare #financialplanning #investing #future #parents

Seniors Overestimating Their Employment Time And The Resultant Retirement Shortfall This issue is well-documented in a recent Urban Institute white paper by Jim Parrott, Laurie Goodman and Ted Tozer at the Urban Institute: "Many seniors enter retirement without enough savings to maintain their standard of living. Less than half of 65-to-74-year-olds have a retirement account, a share that falls to a little over a third for those older than 75. And only one in five seniors can rely on their retirement accounts as a major source of income. The gap between what those entering retirement need and what they have is partly caused by many people overestimating how long they will work. Seventy percent of workers expect to work for pay in retirement, but only 22 percent ultimately do, with close to half retiring earlier than expected because of health, disability, or a change in the structure of their organization. Many find themselves falling out of the workforce before they have built up the savings needed to do without the income. Yet many of these same seniors have built up considerable wealth in their homes. Seventy-eight percent of 65-to-74-year-olds own their homes, as do 82 percent of those 75 and older, and for most homeowners, home equity is their largest single source of net worth. Many seniors thus find themselves short of the savings they need to maintain their standard of living in retirement, but the shortfall could be made up with their home equity." Seniors should consider monetizing their housing wealth through a reverse mortgage to provide tax-free funds to improve their lifestyle in retirement.

When the kids leave the nest and the family home seems too big and requires too much work to maintain, many retirees opt for new living arrangements. Let's look at the pros and cons of downsizing and upsizing in retirement to help you make the best choice. #retirement #familyplanning #planningforthefuture

There are many benefits to living in a retirement community, but there are also important considerations as well. Ask yourself these 7 questions as you consider the financial implications #Retirement #Planning

💡 Locked out: two in five expect to rent in retirement as confusion clouds options Two in five adults who are currently renting (39%) expect to still be renting when they retire, highlighting a major risk to their later life financial security if millions are left to fund housing costs from their pension savings. Full story: https://lnkd.in/eKy3DfHG #WillsProbate #Retirement #Pension #Savings

What do working Americans fear more than death? Retirement. George Petras in USA TODAY writes that many Americans are not only financially unprepared to retire – some fear retirement more than death, a recent survey shows. About 61% of working Americans are more afraid of retiring than of dying, and 64% fear retiring more than getting divorced, according to a national survey for LiveCareer in June. Those concerns reflect grim pictures painted by other studies over the years as the population continues to get older and live longer. About 20% of Americans ages 50 and older have no retirement savings, according to an AARP survey in January. It also found 61% are worried they won’t have enough money for retirement.   How scary is retirement? Find out here: https://lnkd.in/eF2GxvRQ   #retirement #savings #retirementsavings #401k

When the kids leave the nest and the family home seems too big and requires too much work to maintain, many retirees opt for new living arrangements. Let's look at the pros and cons of downsizing and upsizing in retirement to help you make the best choice. #retirement #familyplanning #planningforthefuture

A really interesting report looking indepth at issues of affordability and adequacy