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The New Generation

Financial advisors say they notice big differences between their baby boomer clients and those that survived the Great Depression. Joe Duran‚ chief executive of United Capital Financial Advisers Inc. in Newport Beach‚ Calif.‚ says that it’s not just an age difference; it’s a philosophical difference.

Most boomers are looking forward to traveling. To satisfy this desire boomers believe they can eat into their retirement savings. On more than one occasions Mr. Duran has found himself advising a client that not only can the client not travel‚ but instead the client needs to postpone retirement in order to save more money.

“Most people in their 50s haven’t seen real adversity, and there’s a level of optimism that things will never go into a real tough period. When that happens, people are ill-prepared and they don’t like the fact that they have to make sacrifices.”

John Egan‚ a certified financial planner with JM Egan Financial Planning of Madison‚ N.J.‚ observes that his boomer clients are undeniably eager to leave their work life. “They want to spend their money‚” said Egan.

William Green‚ a certified financial planner with Green & White Advisors‚ a Houston firm says boomers only start to worry when they get closer to retirement. They recognize they’ll be more active than their parents and their income expectations are significantly higher.

InvestmentNews

April 14‚ 2008

Boomers are Optimistic

People in their 50s and 60s are sick of the rat race and they just want to know when they can retire.

It should come as no surprise that baby boomers are planning to engage in a multitude of activities during their retirement years. According to a survey conducted by The Natural Marketing Institute of Harleysville, PA, 93% expect to travel, eat out, and pursue hobbies once they reach 70.

Of the boomers surveyed, 74% said they wouldn’t consider themselves old at the age of 70. Seventy-five percent even stated that they believe their best years are ahead of them. Is this denial or wishful thinking?

Carol Orsborn‚ chairwoman of FH Boom‚ believes this generation brings a sense of resourcefulness to the challenges they will face and nothing seems to daunt them. FH Boom is a marketing initiative for baby boomers.

This sense of resilience seems contrary to other findings in the study. Thirty percent of the respondents stated they don’t think they will have enough money to live on when they reach retirement age and 22% said they know they will not have enough. So how will they adapt?

In talking with boomers‚ Ms. Orsborn discovered that many believe they can adapt by finding work‚ if necessary‚ driving older cars‚ and even sharing houses. Stephen Mitchell‚ director of New York-based Merrill Lynch retirement group in Pennington‚ N.J.‚ admits that boomers have not saved enough‚ but he still believes there is room for optimism.