The ‘boomers’ and their parents have always done things differently – they were raised in a different era. I’m not talking about the cold war; no, there are other things we don’t even think about today.
Laurie Sue Brockway highlighted 27 Things ’60s Kids Did That Would Horrify Us Now in Country Living’s October 30 issue. The piece reflects on era contrasts and safety standards. It lists examples such as no seat belts, unsafe cribs, no bike helmets, and no childproofing, illustrating how daily life differed. You might enjoy it.
But, Boomers face a whole set of new challenges now. IRA decisions.
There was a time when pensions and Social Security covered retirement – easy easy. But pensions are largely gone and the risk of actuarial computations for withdrawals has been shifted to the retiree. I noted that just recently some investors sued Schwab and TD Ameritrade for not being warned about the risks of structured notes – despite the fact they chose to bypass advice and invest on their own in self-directed accounts. They thought they knew what they were doing; they didn’t.
Investing is simple during the accumulation stage. People sock money away in funds and expect it to grow. However, the distribution phase of life is different. Now the baby boomer is the actuary and has only one chance to get it right.
The problem, of course, is that IRA decisions can affect taxes on Social Security, Medicare premiums, and even additional surcharges. And, to make matters worse, some of these decisions are irreversible and permanent.
And, of course, there’s the issue of an uncertain time horizon – and not running out of money during cycles of inflation, interest rate, and tax law changes.
If you’re thinking you’d like to do some learning, you’ve come to the right place.
Good morning class (the last three words I understood in Math 221 – a course I was talked into taking in my college freshman year). Grab some coffee and get ready to take some notes.
Enjoy!
Jim
If you’d like some help, tell me your priorities. This will give us something to talk about.
Jim
