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Surviving 2008 for seniors
Talking 'bout my generation
More than time separates generations of Americans. Culture, attitude, technology and politics all swirl into the mix, turning workers who came of age in the '50s, '70s and '90s into very different people. Each group has its own spending and savings style, and each views homeownership, health care and retirement through its own filters.
We've divided these generations into three categories. Find the one that best fits you and click to see how our experts see your immediate financial future.
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| Seniors |
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Who you are: You can remember back to the days when letter jackets and poodle skirts were the "in" thing and you used 12 cans of Aqua Net a week to get that bouffant just right. Thank goodness times have changed and you now think for yourself. |
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What you want: To play golf or travel. Take an art class. Garden. Volunteer a little. Maybe climb a mountain or two. You want to live the good life -- on your terms. |
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How you're making it: You've saved, lobbed a few bucks into an IRA and the house is yours, but you still haven't really crunched the numbers because you can't believe retirement is that close. Weren't you 16 just yesterday? |
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You think retirement is: Looking good! |
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Greasers, doo wop,
sock hops -- you had a blast. But while you
ditched the eye shadow and zoot suits,
are you still stuck in the past when it counts
the most? If you're eyeing retirement like it's
the last gas stop before you hit the Sahara,
maybe you should take time to check your financial
oil, too.
Just plain moving on
The children are out on their own -- well, most
of the time anyway. There's always that boomerang
kid who keeps showing up on the doorstep with
his stuff in a cardboard box. For the most part,
though, you're done raising your family.
Unless you've shown a Yoda-like devotion to saving for retirement, your home is probably your biggest and most important asset. Deciding what to do with it in 2008 can be tricky.
Owning your home free and clear prior to retirement should be a huge priority. If you can't manage a payoff, you might consider selling, taking the equity and buying a less expensive home outright. Rowley warns that because housing prices went up across the board, people are finding that when they sell, they aren't getting as much home for their money as they had hoped. Rowley says try before you buy.
"Maybe rent for awhile first," she suggests.
Melt that debt
Helloooo. Anyone at home? Not if you're still plunking down your credit cards for stuff you should buy outright. Sure, you need one to pay for your plane ticket or hotel room. But if you're limping under the burden of hefty credit card debt at this stage of your life, then you need to put your budget on a plastic-free diet right now.
Anticipated increases in interest rates will compete with inflation to batter your retirement bucks down to nothing. Best bet, says Rowley, is to keep a zero balance or run the risk of squandering precious retirement income on interest.
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