Thursday, April 18, 2013


The death of the savings account and the end of retirement dreams.
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. 

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.)


MadMonarchist said...

This is SO true! My Grandparents had nothing when they married and Grandpa died a millionaire. Not many knew because he certainly didn't show it, but those who did would ask what his "secret" was. The "secret" was nothing but decades of hard work, saving and being thrifty. That's it. By the time he retired, he didn't have to worry about money and Grandma still doesn't and they never "struck it rich" they just worked hard, saved and didn't spend money on things they didn't need.

julygirl said...

My father just saved from his regular salary as an accountant and died rich. He lived during the time when saving and investing paid off. I tried the same thing but in 2008 the wolves of Wall Street decimated it all. Might as well have enjoyed spending it....