“Boomers” retirement plans…not good…not good at allby Kent Spoerlein | on April 25, 2013None of us have a crystal ball, but if you were born between 1946 and 1964…you are most likelyfacing some economically volatile final years.It’s NOT looking good.70 million-plus of us (I’m one too) are wrestling with 2 huge issues – boredom and financialuncertainty.We all hoped for a payoff in the final “golden” years with marvelous rewards like grandchildren, golf,gardening and fly-fishing – or whatever your own personal passion is. We envisioned a final chapterof serenity and fulfillment – a vision that, for many, has become little more than a pipe dream.Here’s why.For starters, most of us do not have enough money. Not even close. How’s that for a bucket of icewater in the face? Pensions are no longer “fashionable” and our own replacements like IRAs and401Ks are dramatically undefunded. I’ve read that about 90% of our seniors have less than $20,000total saved. Money saved converts to income and the combination of not-enough money andhistorically low interest rates means that the amount of money we have to live on every month isusually nowhere close to being able to sustain our lifestyle.My own personal bank offers (today) a certificate of deposit ($5,000 minimum) for 60 months at arate of .00797%. Wow!$20,000 at that rate will generate $13.28/month in income.Can you live on $13.28/month? No? Neither can I.Let’s say you’ve been one of the lucky ones and have saved $100,000. Now your rate skyrockets to.oo846. Your income would be $70.50/month. Now you can truly live in luxury. Maybe not.
$500,000, a half million dollars, gives you a monthly income of $352.50/month.There’s always Social security. The vast majority of seniors are TOTALLY dependent on thisgovernment program. Depending on your earnings, you will receive somewhere between about zero– that’s right, there is NO minimum to an average of $1,177 (as of 2012) to an absolute maximumof $2,513. To receive the “maximum” you must have paid in the maximum every year since youturned 21 and it is based on full retirement age of 66 in 2012.If you are “average”, you’re getting (or will get) $1,177 fom Social security and about another $13 orso from your ($20,000) savings. That’s $1,190/month.Doesn’t sound like much, does it?If you still have a mortgage on your house or only pay the real estate taxes and utilities or if you rent,that comes out of the $1,190. So does your food, your car (if you can afford one), insurance, medicalexpenses (the older you are the bigger these are), clothing, entertainment, travel (probably not a lot ofthat), etc., etc.Think about it. We’re pretty much screwed.Maybe it’s time to start thinking about a small, home based business that can generate somemuch needed income going forward. It’s obvious that we’re ALL gonna’ need it. Maybe it’stime to take your future into your own hands.Tomorrow, we can talk about the OTHER difficulty we have to look forward to.Boredom