Now that we’re getting ready to retire, it is a race between spending our savings before we die or losing it all in the great recessionary meltdown that some are predicting, due to the massive promises governments made to boomers over the last 30 years without saving enough money to pay for them.
In the Smart Money article, it explains:
“It’s very unfair for boomers,” says Ray Harrison, who heads up wealth advisory firm Harrison Financial Group in Roseville, Calif., which manages $240 million. Unlike investors under age 50 who still have plenty of time to build up their savings, he explains, boomers in their late 50s and 60s have relatively little time to adjust to losses. “Those that just retired wow, they’re hurting,” says Harrison. To prove it, SmartMoney asked the nonprofit Employee Benefit Research Institute to estimate what would happen to future retirees if bonds were to stay at their current, low yields, while equities rose at 6% a year, a more modest rate than historical averages. They found that 56% of late boomers, those approaching retirement age today, would be at risk of running short of money in retirement”
Full article link here:
