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How Baby Boomers Will Fund Their Retirements – Money Talks News

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Whether you can’t wait to retire or plan to remain at your desk for as long as possible, a sobering reality remains: For many of us, there will come a day we no longer are able to work.

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Whether you can’t wait to retire or plan to remain at your desk for as long as possible, a sobering reality remains: For many of us, there will come a day we no longer are able to work.

Perhaps illness keeps you from holding a job. Or maybe age discrimination — despite being technically illegal — bars you from decent employment. Whatever the reason, it is likely that at some point, the job income will dry up.

What will you do then? Investopedia asked thousands of adults — including baby boomers ages 58 to 76 — to describe how they will support themselves financially once they are no longer able to work.

Following are the top sources of money baby boomers plan to tap when work disappears.

13. Bonds (three-way tie)

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Percentage planning to use this for income: 5%

Bonds have a long history of providing retirement income for retirees. Particularly in previous generations, those in their golden years who shunned risk often put their money — and their retirement hopes — in government bonds.

Some retirees still use this strategy, but it has become less attractive as boomers and others have gravitated toward stocks. Bonds offer a measure of safety, but remember that their lower returns tend to leave retirees who choose them more vulnerable to inflation.

Looking for a stellar return on bonds? Check out “This Risk-Free Bond Now Pays 7.12%.”

13. My children or relatives will care for me (three-way tie)

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Percentage planning to use this for income: 5%

When all else fails — your investments and savings go south, your spending goes north and debts continue to pile up — you can always look to Junior to bail you out.

You took care of your kids for 18 years or more. Consider it payback time.

Unfortunately, the reality today is that it is more likely that parents will take care of children well into adulthood than the other way around, as we detail in “8 Things You Should Not Do in Retirement.”

13. Cryptocurrency (three-way tie)

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Percentage planning to use this for income: 5%

Some might think boomers would deem cryptocurrency to be faddish, insisting that it is a young person’s game. But 5% of boomers appear to be intrigued by Bitcoin and company.

If digital currency has piqued your interest, check out “9 Surprising Things You Can Buy With Cryptocurrency.”

12. Cash-value life insurance plan

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Percentage planning to use this for income: 6%

The promise of …….

Source: https://www.moneytalksnews.com/slideshows/how-baby-boomers-will-support-themselves-once-they-can-no-longer-work/

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