However, the reality is that the job market for middle-aged and elderly baby boomers is very competitive and low paying. The situation is even bleaker concerning retirement. Well over 76% of baby boomers don’t have enough money saved for their retirement future. Around 7% of baby boomers may go bankrupt after elderly age. The cost of health care throughout retirement can cost almost $300,000.
Many baby boomers must become more familiar with complex financial terms and topics. Organizing their finances may be impossible due to lack of money, comprehension, or medical issues. You have options if you want to help baby boomers with their financial decisions.
Consult a Fiduciary Financial Consultant
Getting professional advice from a financial advisor with expertise in helping baby boomers can be the first step. Persuade the baby boomer to consult with a financial advisor who acts as a legal fiduciary. Legal fiduciaries are fee-based consultants as opposed to commissioned-based consultants. Legal fiduciaries are fee-based consultants as opposed to commissioned-based consultants. Legal fiduciaries are legally obligated to put the concerns of their clients above profit for themselves.Commission-based financial advisors must make a commission and/or sell sponsored financial market products. Their priority is the commission, regardless of how helpful they are as advisors. You can at least compare rates with a fee-based fiduciary financial advisor. Make sure that you meet in person as well. Make your baby boomer relative or friend feel engaged and fully involved.
Downsizing
People in the baby boomer age range may own houses and properties that they may be unable to upkeep or maintain anymore. It takes time and energy to keep a home. If they are empty nesters, they may be wasting much money living in a too-spacious house. Or, they may need be unkeeping up with the utility payments. While costs aren’t easy to suggest to your baby boomer friend or relative that they downsize their life.Help them to itemize, collect and assess the value of their belongings for possible sale and/or auction. You can also hire downsizing experts who specialize in assisting elderly clients. It is difficult to part with items collected over a lifetime, so do everything you can to be sensitive about the process. Assist in the sale of the home and in the search for an apartment. This will be a complicated process. It may be necessary to help baby boomers get their finances right.
Final Expense Insurance
Talk to your baby boomer friend or relative about getting final expense life insurance coverage. Final expense life insurance is a bare-bones version of a life insurance policy. It is designed primarily to pay for end-of-life medical and/or funeral expenses. Beneficiaries can be listed, and such policies can be leveraged as a loan, but that wouldn’t be the best use of the policy. Most average, low-cost final expense life insurance policies are worth $20.00 to $25,000.Premiums can be as low as a few dollars a month. There is no medical exam or doctor’s visit required. You may even be allowed to apply for this type of insurance on behalf of the baby boomer. Their consent and signature will be required. If you’re helping them, you may be listed as a beneficiary and be responsible for arranging and paying for their funeral expenses.
Ross Quade’s article on Final Expense Insurance.com explains, “Organizing a funeral while grieving is a tricky enough situation as it is; your loved ones should not have to do so while also figuring out how to cover thousands of dollars’ worth of funeral expenses.”
