Eddie Patel, President
Action Investment Services, Inc.

6 Top Issues Facing the Retiring Baby Boomer

Written by Eddie Patel

1. Inflation

I highlighted the recent spike in inflation on the radio airwaves in my most recent shows on WIND, airing on 3/29 & 4/05. According to CNNMoney.com, inflation was an astounding 4.3% in 2007.

The dollar has been steadily weakening against foreign currencies in Europe, Asia & South America and this continues to pose a massive threat against the plans of would-be retirees. If you are a "Boomer" planning to retire in the not too distant future, it is imperative that you seek out returns in excess of inflation to keep up with the cost of living.

2. Longevity of Life

You may not know this, but the fastest growing segment of the population is those age 85 and over. Long life may not only bring great joy, but also great responsibility. A boomer must be mindful of income distribution in a responsible way, so as not to outlive their retirement savings.

3. Investment Risk

More so at retirement than at any other point in time, investment risk will pose a disproportionately large threat to a retiree's overall security. A Boomer retiree should actively seek financial vehicles which offer guarantees and fringe benefits (like nursing home provisions, long term care riders, chronic illness riders) to supplement their investment plan.

4. Health Care

Seems like health care has been in the news a ton lately - and for good reason. Approximately 57 million people continue to remain uninsured. A retiree not armed with the proper health care, may be out of luck if they are uninsurable at advanced ages.

5. Long Term Care

Skilled home care services or nursing home services will be in high demand in the coming years. As more Boomers retire, the threat of long term care needs are becoming staggering. Visit our article on Long Term Care for more information.

6. Overspending

I think we all can admit that there are times when it seems like we just can't hang on to our money. Be it a new car, a new boat, a new pair of sunglasses, or even a great night on the town - there is always something tugging at our finances. Overspending will pose a huge threat to retirees as habits that they have formed for 30 years may have to be altered.

Of course, Action Investment Services believes that the use of our income planning services will actually net you more money to spend on travel vacations, your grandchildren, or that new house you want – but we will always address the issue of needs overspending before we ever dip into the luxury and big ticket items.