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How to Help Baby Boomer with Finance Decisions

The baby boomer generation is known for being the generation of babies born after the Second World War Baby boomers are a generation that worked for everything they had, saved money and passed on their financial wisdom to their children. They are a proud generation who value hard work, sacrifice, and independence.

However, the reality is that the job market for middle-aged and elderly baby boomers is very competitive and low paying. The situation is even bleaker concerning retirement. Well over 76% of baby boomers don’t have enough money saved for their retirement future. Over 7% of baby boomers may go bankrupt after elderly age. The cost of health care throughout retirement can cost almost $300,000.

Many baby boomers are unfamiliar with complex financial terms and topics. Organizing their own finances may be impossible due to lack of money, comprehension or medical issues. If you want to help a baby boomer with their financial decisions, you have options.

Consult a Fiduciary Financial Consultant

Getting professional advice from a financial advisor with expertise in helping baby boomers can be the first step. Persuade the baby boomer you know to consult with a financial advisor who acts as a legal fiduciary. Legal fiduciaries are legally obligated to put the concerns of their clients above profiting for themselves. Legal fiduciaries are fee-based consultants as opposed to commissioned based consultants.

Commission-based financial advisors need to make a commission and/or sell sponsored financial market products. Their priority is the commission, no matter how helpful they are as advisors. You can at least compare rates with a fee-based fiduciary financial advisor. Make sure that you meet in person as well. Make your baby boomer relative or friend feel engaged and fully involved in the process.

Downsizing

People in the baby boomer age range may own houses and properties that they may not be able to upkeep or maintain anymore. It takes time and energy to maintain a house. If they are empty nesters, they may be wasting a lot of money living in a house that is too spacious. Or, they may just not be able to keep up with the costs of a mortgage and utility payments. While it won’t be an easy decision, you may need to suggest to your baby boomer friend or relative that they downsize their life.

Help them to itemize, collect and assess the value of all of their belongings for possible sale and/or auction. You can also hire downsizing experts who specialize in assisting elderly clients. It is not easy to part with items collected over a lifetime, so do everything you can to be sensitive about the process. Assist in the sale of the home and in the search for an apartment. This will be a very difficult process. It may be necessary to help a baby boomer get right with their finances.

Final Expense Insurance

Talk to your baby boomer friend or relative about getting final expense life insurance coverage. Final expense life insurance is a bare-bones version of a life insurance policy. It is designed primarily to pay for end-of-life medical and/or funeral expenses. Beneficiaries can be listed, and such policies can be leveraged against for a loan, but that wouldn’t be the best use of the policy. Most average, low-cost final expense life insurance policies are worth $20.00 to $25,000.

Premiums can be as low as a few dollars a month. There is no medical exam or doctor’s visit required. You may even be allowed to apply for this type of insurance on behalf of the baby boomer. Their consent and signature will be required. If you’re helping them, you may be listed as a beneficiary and be in charge of arranging and paying for their funeral expenses.

Ross Quade’s article on Final Expense Insurance.com explains, “Organizing a funeral while grieving is a tricky enough situation as it is, your loved ones should not have to do so while also figuring out how to cover thousands of dollars’ worth of funeral expenses.”

Be Persuasive

Baby boomers are known for their pride and independent spirit. They may be reluctant to ask for help when they need it. Especially in getting their finances in order. Take your time. Be patient and convince the baby boomer you know that they need help. We all need help sometimes.

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