Roughly 25% of the U.S. population consists of baby boomers, a number that's expected to rise substantially in the coming years. In these uncertain economic conditions, shaky investments can see baby boomers lose a large portion of their wealth and savings. Baby boomers must plan accordingly to preserve their purchasing power and continue to earn income for a prudent post-retirement nest egg.
This reality has many seniors reconsidering their investment strategy, especially when it comes to the real estate market. Real estate investments can bring financial strength to retirement portfolios, as well as financial security for their children in the years to come.
Many baby boomers have not prepared well in advance to meet their expenses post-retirement. A few think they will manage somehow, while only a small number of retirees feel that they have sufficient money to finance their lives post-retirement.
1. Dividend-Reinvestment Plans
Dividend reinvestment plans, usually known as DRIPS, are a viable investment option for baby boomers. These allow investors to reinvest their dividend checks automatically to a single dividend paying company. There are many companies that offer such plans, while they might be offered by a transfer agent or broker as well. The main benefits of DRIP’s are as follows:
The retirement time for baby boomers has just started this year, and expectedly, many of them are not as prepared as they should have been. Baby boomers should know that the financial securities they undertake today will affect their future for the rest of their lives.
On an average, a baby boomer is expected to live 83 years or more because they are healthier and are expected to have a greater life span. Below are some investment options for baby boomers which they should consider.