Planning a Secure Retirement? Top 4 Strategies for Baby Boomers

These are the best strategies for baby boomers when they want to have the retirement of their dreams!

Forget the rocking chairs and bingo nights—baby boomer retirement is about redefining growing old gracefully! But when you have this newfound freedom, things are not that simple because many questions come along, and one of those is: How do you secure a happy and finally stable retirement?

More than 10,000 boomers are retiring every single day, and because the average lifespan increases, most people become interested in the ever-increasing healthcare costs and the market dips.

So if you want to turn your golden years into the best years of your life, we have some actionable strategies that will help you feel like you are in the prime of your life. Learn how to build a nest egg with these strategies for baby boomers!

strategies for baby boomers
Photo by inray27 at Shutterstock

1. Try to combat inflation with your investments

Imagine that you have saved enough money for your retirement, that you have meticulously planned everything, and BOOM! Inflation rears its ugly head and is ready to take away your purchasing power. That coffee you used to buy as a treat in the morning is now a luxury item, but don’t worry because there is a solution to this.

There are a few strategies for baby boomers out there, and considering investments that combat inflation is a truly useful one.

Try to look at inflation as a sneaky thief who is shamelessly stealing your hard-earned savings. You can’t allow that to happen, and if you choose some clever investment options, you will probably be safe.

The first thing you can consider is definitely real estate. This is an investment filead that is known to survive weathering inflation storms. And generally, over time, the values of properties rise, which is why you can think about investing in Real Estate Investment Trusts (REITs).

You and other people will put your money in the same place and buy income-producing properties. This means you will buy a part of a shopping mall or maybe an expensive apartment building. This is a good addition to your investment portfolio and is definitely one of the best strategies for baby boomers who want to have a secure retirement.

Another thing you can try is dividend dynamos. In this case, big companies will concisely hand you a part of their profits. You will have to invest some money in stocks for that company, and it is a great way to combat inflation. Also, if the stocks go up, you will get more money.

2. Insurance coverage is key

Maybe you feel like you are finally leaving your dream life and have a nice garden where you can relax and drink your favorite cocktail. But out of nowhere, your medical bill arrives, and the sum you can see on the “total” field is big enough to turn your favorite drink sour. How about that? After all, you have invested money and built the perfect nest, right?

This is why you should never overlook insurance. Your health condition is unpredictable, and you want to be prepared for unexpected financial blows. One of the strategies for baby boomers is to have a well-rounded insurance portfolio that can act like armor when something like this happens.

Your insurance is the first line of defense that will be there when you look at the medical expenses that keep adding up quickly. Prescriptions, doctor visits, and hospital stays—all of them are experienced, and Medicare alone will not cover everything.

This is why you need to look into plans like Medicare Advantage or Medigap policies that will help you cover those gaps and have a carefree retirement.

But insurance is not only about health. Having life insurance can ensure that your loved ones are financially secure even after you are no longer around. Even more, disability insurance can be there to give you and your family peace of mind in case you suffer an injury or a debilitating illness.

3. Planning your legacy

At some point, all of us manage to build a life, and many times we have some treasured possessions that we want to find their way to the right people when we are no longer around. This is where the estate plan comes in, and it will act as a tool that will guide your legacy into the future.

It is a good idea to think about estate planning from time to time because, in the end, it can be recognized as the ultimate act of love and organization. An estate plan is the only thing that can let you outline how your assets will be distributed after you are gone.

Here are a few steps that can help you have peace of mind. First, you need to have some appointed individuals who will act as your financial and healthcare powers of attorney. This means they will be able to make decisions for you when you will not be able to.

A will or a trust act is going to be there and clearly state who inherits what. In this way, you can be sure there is no room left for interpretations, and no one will have their feelings hurt. Also, remember that life insurance policies and retirement accounts usually have designated beneficiaries. Check it from time to time and make updates that reflect your current wishes.

A comprehensive estate plan is one of the best things you can do for your loved ones, and it will surely give them peace of mind. No more stress and no more legal confusion—this is what you should be aiming for. This is for sure one of the greatest strategies for baby boomers, and you should look into it.

strategies for baby boomers
Photo by simon jhuan at Shutterstock

4. Building an emergency fund

This is one of the first strategies that baby boomers should apply to their lives. We know that people tend to romanticize retirement and present it as a time for walks in the parks and doing everything you always wished for, but in the end, you can encounter unexpected car repairs or a natural disaster. You never know what is going to happen.

This is why it is recommended to have an emergency fund. When the unexpected happens, you will be ready to act quickly, and most of the time, what you need in a situation like this is money. Most of the time, experts recommend 3-6 months’ worth of living expenses in your retirement fund, but during retirement, it is ideal to have a little bit more.

You can try to make a list of all of your expenses and also the healthcare costs that might appear and are not covered by the insurance. Then add a little wiggle room for those unforeseen events, and this might help you find out how much money you need in your emergency fund.

Creating this fund might seem like a daunting task, but you can start small. Start with an amount each month, such as $50 or $100, and believe us when we say that it will make a difference in the long run. This is going to be your safety net, and it is worth investing in it.

We hope that these strategies for baby boomers will be helpful and that you will be able to make your retirement a time of relaxation and recharging. After all, it is your chance to enjoy the fruits of your labor.

If you want to learn more about how to have a carefree retirement, this book might help you: Safety-First Retirement Planning: An Integrated Approach for a Worry-Free Retirement (The Retirement Researcher Guide Series)

You should also read: 8 Expensive Places to Retire That Are Worth Every Penny


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