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Costs of Retirement

Bradley Hall

Feb 24, 2023

Surviving Uncertainty

The "Silver Tsunami" as some have coined as the phrase to describe the baby boomer generation approaching the point of retirement age or "seasoned" as I'm sure they would prefer. Many in various healthcare disciplines have viewed this as an opportunity to enter the field to begin providing products and services to this population. While those products and services may be needed, and even essential in certain cases, many seniors are finding it difficult to afford them. With market volitility in 2022, there was an average of a 23% decline year over year in their retirment accounts according to Fidelity Investments, the nation's largest provider in 401K plans. Market volitility along with inflation has retirees returning to the workforce in preparation for the uncertainty in the future. According to AARP "One percent inflation over 20 years based on a $1,341 monthly income will result in a $34,406 cumulative loss...8.3% the shortfall jumps to $400,000." Seniors have also seen challenges in downsizing homes. With interest rates hovering around 5% and the potential to be manipulated higher to curb inflation, the sale of a long-time residence for a smaller more efficient home could present a financial burden that may be more of a detriment to seniors' monthly budgets. In the midst of all of this chaos, there are positive options to explore to protect your life savings. Those who have a financial planner understand the importance of having a market expert that have your best interest in mind. They can be the determining factor of you retiring and staying retired or having to find other income alternatives. So doing your due diligence to vet the right person is essential to your financial future. Another defensive strategy to market conditions is real estate investing. If there are oppotunities to own residential living, single or multi-family, then it would provide a consistent flow of monthly revenue to combat rising costs. People will always need a place to live. So those who position themselves to be that solution will be better suited to not only survive these uncertain times, but thrive with little to no worry. Healthcare costs are only increasing and, for the foreseeable future, show no signs of slowing. Don't wait until care is needed to begin financially preparing. As a more "seasoned" individual once said, "It's better to have it and not need it, than need it and not have it."

Bradley is the owner of Granny's Helping Hand LLC, assisting individuals with disabilities with activities of daily living (ADLs). Proudly providing care to veterans.

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