The biggest fear among many boomers today is not having enough money to retire. Often it's due to circumstances during their working years that kept them from building up their nest eggs. But along with these upright hard-working folks is another element of boomers who've fallen into the subtle trap of lifestyle creep.
Unlike their frugal parents and grandparents who lived through the great depression of the 1930s, most baby-boomers under age 60 have never seen anything but prosperity. Their mindsets are totally opposite, and spending and carrying large debt have become their normal way of life.Share
Reverse mortgages, originally aimed at the elderly who needed more income but simply wanted to continue living in their life-long homes and neighborhoods, have now become giant debit cards for many age 62 and above baby boomers who not only want to maintain, but kick up their retirement lifestyle.
But when they start tapping their home equity as a cookie jar for things they never had before, it's lunacy, especially when they have no clue of the future financial emergencies they might be faced with.
Lifestyles of the Rich and Stupid ... Preferring to look rich than ever be rich, they live in a constant state of FEAR... False Extravagance Appearing Real. Sure, we can blame it on our great American culture that promotes the love of money and spending over investing and saving, just as we can blame our cigarette makers and distilleries for our smoking- and drinking-related deaths. But the real root of the problem lies not with the distributor... but the distributee. (Read entire post.)