Financial Planning: 31% of Boomers Would Rather Clean Their Bathrooms

At a recent conference organized by the Million Dollar Round Table, an international association of investment and insurance professionals, baby boomers were the #1 topic of conversation. Why?  They want our business, of course. This is the conclusion they came to after two days of brainstorming with psychologists, gerontologists and economic guru Dr. Alan Greenspan, former chairman of U.S. Federal Reserve.  "It would be wise to harness the power of positive thinking and provide a tailored financial planning experience: one that caters to the individualist streak of the "me" generation.

It becomes very obvious that motivating us boomers to save is quite the challenge.  Why is that? 

According to Lee Eisenberg, author the The Number, "there's a pandemic loose in the U.S. -- it's called 'inspiration deficit disorder', or IDD. It's about inertia and avoidance. He thinks boomers aren't exactly sure what they are planning for. I guess there is some merit to that thinking.  So many of us are rejecting the idea of retirement and looking for another alternatives.  But, because the alternatives are not clear to us, we don't know how to plan for them. Make sense?

Financial advisors say they have to deal with continuing consumer skepticism.  A study by Wachovia Corp revealed the No. 1 road block to planning for retirement, according to the boomers they surveyed, was corporate scandals.  Apparently they have eroded trust in the market and the people who advise about the markets.

Dr. Ken Dychtwald, founder and president of Age Wave, a San Francisco consulting firm, says "the industry needs to shift its traditional focus from products to solutions and from numbers to what really matters in people's lives". I agree with that.  Novel, a financial professional who doesn't have the one-size-fits-all mentality.  Someone who actually looks at their client's complete lifestyle to determine their needs.  Creating a plan we can feel comfortable with.

It's no secret the alarm bell is sounding, but apparently with little impact.  Aetna, the health insurance provider did a study that showed 31% of pre-retirees would rather clearn their bathrooms or pay bills than plan for retirement.

We boomers are born optimists.  But, come on, we really do have to take care of business.  We believe money equals freedom.  To remain the independent souls we cherish so much, we are going to need a steady income stream.

This I know for sure.  You have to start now looking for a financial advisor that can help you.  You don't have to get into bed with the first one you interview.  Yes interview.  This is your money and you have to feel comfortable with the person you choose to manage it. Whoever that is, tell them your immediate needs and what you envision for the future.  If you don't like the word retirement, (I hate it) tell them not to use it.  Tell them to refer to it as "Act Two".  In short, do whatever it takes to take the fear out of the numbers game.  Once you do that it can actually be something you will enjoy participating in.  Let me know how you make out.