| Baby Boomer-or Old Loser?
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| | to grow and the funds will be available
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| They grew up in prosperous times and
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| | when work is no longer an option.
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| lived life to the hilt...but have baby
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| | How will boomers find needed funds in
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| boomers saved enough for retirement?
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| | retirement?
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| In the eighteen years between 1946 and
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| | An Associated Press survey reported that
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| 1964, over 78 million babies were born in
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| | the majority of boomers hope to retire
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| the United States. World War II had been
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| | from their current jobs at around age 63.
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| good for the American economy, pulling it
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| | However, 66 percent anticipate they will
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| out of the Great Depression for good.
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| | work for pay after retiring. Twenty-seven
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| During the "fabulous 50s," unprecedented
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| | percent will continue to work out of
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| industrial growth provided steady
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| | financial necessity, 43 percent because
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| employment and rising incomes. The
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| | they can't picture "sitting around doing
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| four-child family became the ideal, along
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| | nothing," and 19 percent so that they
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| with a house in the suburbs, two cars in
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| | will have money available for extras they
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| the driveway, and that wonderful new
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| | could not afford on their retirement
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| invention, the television, in the living
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| | income.
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| room. One-income families were the
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| | The majority of boomers foresee neither
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| norm-and for the middle class at least,
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| | full-time leisure nor full-time
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| one paycheck was enough to supply
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| | retirement, but a combination of both.
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| families with an increasing number of
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| | With 30 years of retirement a real
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| luxuries and new experiences
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| | possibility, they are looking for
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| While many boomers have invested wisely
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| | challenges, not rocking chairs. Some plan
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| for retirement, the majority have just
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| | to launch new careers or use their skills
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| not saved enough. There have been
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| | as volunteers. Others say they will go
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| incredible social and economic changes
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| | back to school, start their own
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| since the 1950s, when boomers grew up
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| | businesses, or try to turn a profit from
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| with an innocent confidence that life
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| | a hobby.
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| could only get better. Unlike their
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| | Are You a "Wealth Builder"-or "Stretched
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| fathers, who were likely to stay with one
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| | and Stressed"?
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| company and draw a sizable pension, many
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| | In The New Retirement Survey, Harris
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| boomers have job-hopped-sometimes out of
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| | Interactive(R) and Age Wave questioned a
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| boredom or a desire to find work that
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| | diverse population and identified five
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| would make them happy, and sometimes
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| | different types of soon-to-be retiring
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| because of mergers, layoffs, outsourcing,
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| | boomers: the "Empowered Trailblazers,"
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| and early-retirement buyouts.
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| | the "Wealth-Builders," the "Leisure
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| Skyrocketing housing, education, and
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| | Lifers," the "Anxious Idealists" and the
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| healthcare costs have depleted retirement
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| | "Stretched and Stressed."
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| nest eggs as boomers have found
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| | About 18 in this group plan to work some
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| themselves sandwiched between college
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| | after retirement, but they will also be
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| expenses for their children and care for
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| | busy with travel, volunteering, taking or
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| their elderly parents. The increased
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| | teaching classes, and generally enjoying
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| frequency of divorce has also left many
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| | anything new that comes along.
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| boomers with much less in their IRAs and
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| | "Wealth Builders" (20 will continue to
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| 401Ks than they thought they would have.
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| | work after official retirement.
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| Then there are those who have put aside
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| | "Anxious Idealists" (13) just want to
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| nothing at all. Perhaps they followed the
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| | relax. They're sick of work, probably
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| advice in the popular 70s song "Cast Your
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| | never liked their jobs, and definitely
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| Fate to the Wind." Or perhaps they lived
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| | don't want to work after retirement. They
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| paycheck to paycheck and simply never had
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| | had low income levels and did not save
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| anything to save.
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| | enough, but they figure "someone will do
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| Financing Retirement: How Much Will You
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| | something" to help them if they get into
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| Need?
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| | trouble.
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| In 2008, the oldest of those 78 million
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| | The "Stretched and Stressed" (18 chance
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| boomers will turn 62 and will qualify for
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| | of identifying with a group that feels it
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| reduced-rate social security payments. In
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| | needs more money for retirement. With the
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| the decades that follow, more and more
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| | economy in constant fluctuation and costs
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| will qualify. As most people know, social
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| | of necessities rising steadily, it's no
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| security replaces only about 40 of their
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| | wonder that most people fall into the "I
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| pre-retirement income in order to
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| | need more money" category. Peace of mind
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| maintain a comparable lifestyle. But that
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| | means knowing not merely that you will
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| assumes that their expenses will
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| | somehow be able to survive, but that
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| decrease-that retirees will simply put
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| | you'll have the funds to allow you to
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| themselves on austerity budgets and make
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| | enjoy the happy retirement envisioned by
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| up the shortfall. Unfortunately, even if
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| | the "Empowered Trailblazers."
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| they want to be more frugal, it won't be
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| | YOU Control Your Future.
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| easy. Supplemental Medicare policies and
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| | Fortunately, no matter how old you are
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| long-term care insurance are new expenses
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| | right now, it is very possible to become
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| retirees must absorb, and property taxes,
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| | a "Wealth Builder." This doesn't mean you
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| home and auto insurance, energy costs,
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| | have to become a workaholic or even keep
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| and food expenses will all continue to
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| | working full time. Instead, you can build
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| rise.
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| | an income generator that will provide
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| The Worst That Could Happen...
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| | funds for you to invest now and to fund
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| Boomers' biggest fear is that a
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| | your retirement for many years into the
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| healthcare crisis will use up funds
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| | future. And you can do it in the privacy
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| they've set aside for retirement. Medical
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| | and comfort of your own home, or even
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| advances allow people to live much longer
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| | from your RV or vacation hotel. As long
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| than in the past, but their quality of
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| | as you have Internet access and a
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| life is often not the best, and spending
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| | telephone, you can build a successful
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| for prescriptions that prolong life is
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| | business that will quickly transport you
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| through the ceiling. Boomers are worried
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| | from a state of anxiety and pessimism
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| about living out their final years in an
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| | about retirement to one of financial
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| unpleasant but expensive nursing home, or
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| | confidence and security-ready to enjoy
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| having to ask their children for help.
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| | the rest of your life in a style you may
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| This fear is another factor that fuels
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| | never have imagined possible.
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| the desire to accumulate just a little
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| | Is there still time? Absolutely.
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| bit more money and take less from
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| | Obviously, the sooner you get started,
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| retirement nest eggs so they'll be able
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| | the better.
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