Debt Dims Boomers' Retirement Pospects

Ted

FYI: What is the biggest difference between baby boomers' retirement and that of their parents? Many people would say disappearing pensions. But even in the heyday of traditional pensions in 1979, fewer than 40% of U.S. workers were covered by a defined benefit plan, according to the Employee Benefit Research Institute. And many of those workers never stayed long enough at a single employer to collect a pension.
Regards,
Ted
http://www.investmentnews.com/article/20160718/FREE/160719943?template=printart

BobC

There is a lot to be said for the "good old days" in terms of paying cash for almost everything. I can remember the era of no credit cards, and I can clearly remember my mother carefully watching how she spent her household budget each month. I grew up in a truly middle-class family. There were some kids in my school that had lots more than I did, but there were a lot some who had a whole lot less than I. One positive then was the lack of in-your-face, gotta-have-it-now marketing 24/7. They were indeed simpler times. I have preached for a long time that the biggest thing most folks can do to enhance their retirement picture is to pay off their mortgage before retirement and, of course, not carry credit card debt if at all possible. Some sectors of the financial planning community think this advice is a bit out of step, but our clients who have accomplished this are seeing the wisdom of it. Another thing to do is to monitor every bit of spending for at least one month, to find out where money really goes and to see how much frivolous spending most of us do. It doesn't mean pinching pennies, but it can be very revealing...and shocking.