Baby Boomers in Trouble – MarketWatch

This post is just a quick one to point out several important topics affecting Baby Boomers approaching retirement. I find MarketWatch has some very interesting articles and audio’s. Some I don’t agree with but the ones listed here I believe are important to us Baby Boomers.

This will be a short post because a family matter has taken most of my attention. It should be back to normal tomorrow.

They just seemed to me to hit all our hot buttons with their topics.

Consumers more at risk from financial scams as stocks slump

Summertime, and the scamming is easy. The North American Securities Administrators Association issued a warning last week about summer scams, suggesting that investors protect themselves against “hot energy-related tips, speculative real estate promotions, unsolicited invitations from new online ‘friends,’ and complex, opaque investment products that fail to offer clear disclosures of their risks and costs.”
See Chuck Jaffe.

Housing crash hits baby boomers

The collapse of the housing bubble will likely have drastic implications on the wealth and retirement of certain baby boomers, according to a report Tuesday by the Center for Economic and Policy Research.
See full story.

‘Vast majority’ of boomers will lack home equity in retirement

The housing slump has crushed the nest eggs for many baby boomers, according to a new study by the Center for Economic and Policy Research. “We’re really talking about a really large drop-off from just a few years ago,” says Dean Baker, the director of the economic research group. He says typical household wealth for Boomers between ages 45 and 54 is on track to drop from $155,000 in 2004 to under $98,000 in 2009.
Listen to Audio Report.

I’d also like to bring your attention to Tips at the Bell article called “The Death of “Buy and Hold”. Whilst I do not advocate buying Stocks unless you know what you are doing Stephen Rawls makes a good case using GE the Blue chip of them all. You need to sign up for his newletter so I can’t point you to it. But he says:

‘investors who originally bought GE in late 1998 are no longer profitable (not considering dividends)’

‘An investment in General Motors in May 1999 would have lost 83.7% by last week.’

‘Holding onto losers, even great companies like GE, GM, or a Microsoft, can be deadly to your investment returns’

Rule #1 in Retirement is to Avoid Large losses. That includes losses on any asset we have as Baby Boomers. I believe we have had it so good we haven’t realized the world has changed and it a much more volatile place. We can not longer sit on our hands and expect our investments to just grow over time. We have to make decisions about what we invest in and that means we can be WRONG. Decision-making is not something we have had to do much of with our retirement money. But now it is the most important thing we can do now.

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