Yes my fellow Boomers…you’re hearing it everywhere; our current state of economic affairs are ABSOLUTELY DEVASTATING for us as we head toward our much anticipated retirement days in the sun. Here’s an example (contracted) from US News and World Report:
3 Ways the Economic Crisis Is Destroying Baby Boomer Retirement
- Stock Market declines: During the past 12 months, retirement accounts have lost $1.6 trillion or 18.3 percent of their value, according to Urban Institute
- Falling Home prices: The average home price fell 3.9 percent from January 2007 to May 2008, according to the Office of Federal Housing Enterprise Oversight
- Decreasing Job markets: Contracting credit markets could weaken the labor market, thus limiting employment opportunities for older adults
And although the writer of this USNWR article does provide ideas for how to offset today’s admittedly troubling economic conditions, many others do not, staying firm on the newspaper-selling, google-search-engine attracting, dire news, all of which can understandably make a Boomer feel…well, panicky.
Here’s why, issue by issue.
Stock Market Declines
Will the recovery from this mess take years? As Sarah would say, “you betcha!”
But the operative word is “recovery”. We do, in fact, have a few years to hold on and wait out this inevitable, years-in-the-making, needed correction to our (and our nation’s) overspending, under-saving, and the massive, voter permitted deregulation of an industry that has proven itself at least 2 other times in the past 30 years of being incapable of controlling itself (but immensely capable of poor decision-making and business practices founded in greed).
Panic, sell off your stocks, and you create precisely the situation you fear; a self-fulfilling prophesy. My guess is that all of us were smart enough to have generally diverse portolios. This economic situation is why we have such diversity, so trust it. Selling your stocks will just make your situation worse (because it will take the market into a greater downspin), and has no upside (because you’re selling at such a huge loss). Worst case scenario, you will have to work an extra year or two to compensate for the losses your portfolio is experiencing right now. But your investments will come back. If you don’t panic and crash the system.
OMG, as our kids would text-speak, there is plenty of work for us right now! Whether you’re recently laid off (due to the economy…) or seeking your retirement second career a little sooner than you’d originally budgeted for, there are “recession-proof” industries/jobs that will snap up a Boomer with our experience and background, in the proverbial heart-beat!
This from the Miami Examiner’s Baby Boomer Expert (Paul Briand):
Uncle Sam to Baby Boomers: I want you
The last time some Uncle Sam needed some Baby Boomers was during the Vietnam War … as soldiers.
Now, according to a new partnership, there is need anew … as workers.
The Partnership for Public Service has started the FedExperience pilot program with federal agencies, corporate partners, and other stakeholders to match government’s critical hiring needs with the talents of experienced, older workers.
The partnership sees a win-win relationship between the government and older workers.
I’ll add to that a list of other, Boomer friendly and recession-proof jobs available right now:
- Mechanical and Electical Engineer
- Sales Executive
- Technology Executive (for those of you with or able to get quickly get your Computer Science degree)
- Customer Support/Management
- Database Administration
- Product and Project Management
- Financial staff at every level (from Finance execs, to accountants and bookkeepers)
- Business Analysis & Development
- Adminstrative/Executive Assistant
And yes, you may have to put off for a little while your dreams of business ownership, but there’s no need to throw out that dream. Just postpone it perhaps for a year or two. That said, if you do want to go for it now, sign up for my free report Forbes 9 Best Boomer Markets: http://tinyurl.com/3rlrpe
Is your house worth less right now? It is. But the housing market is already reaching its bottoming-out point and will rebound in less than one year. So just hang in there a little longer before you take that reverse mortgage or consider moving.
Will you have to revamp your retirement timeline or plans? Perhaps, but again, our retirement is hardly IN RUINS!!! It is on hold for a while, or will look differently than we’d hoped for a while.
Ultimately, Boomers, this is not a catastrophe; it is a major but temporary inconvenience. It is scarey, but not fearsome. We will not all be living a new millennial version of The Grapes of Wrath; we will be living a little leaner, which isn’t a bad thing anyway, really.
We’re going to be fine. But not if we panic.