Let us now visit the Baby Boomer:
The Baby Boomer’s phase – a phase before you enter into retirement. What you do during the Generation X stage will have a significant impact when you enter into this critical life phase. ?By now, you should be clear on what Financial Independence is all about. You cannot afford to be ignorant or nonchalant to the over-arching needs of old age.?By broad definition, Financial Independence is to have a fully paid home, savings in the bank and also a reasonable level of IGAs that will provide you with a steady stream of income flow – without you having to work.
The whole series of questions will help you put things in clearer perspective. This series of soul-searching questions aim at helping you align your current plan and actions to your future goals and aspirations.
For once, let’s be serious – because your future is worth it.
Without a plan, most people will not be able to achieve lifetime success. We need to have a strategic game plan. You need to identify and allocate your current resources in a prudent manner that can help you achieve your long term financial plans, goals and dreams.
Baby Boomer- Know Your Resources And Have A Good Start
This stage represents a very challenging phase of your life. It is the period in which you will experience different family members being at different phases of their lives. Having to manage single-phase planning is already challenging enough, much less multiple phases!
Being at this phase now, many of my life’s priorities have shifted drastically. My children were ready to go to university. They were also moving into the Gen Y age band – which means a different method must be used to approach them. Also, there were medical issues to be addressed regarding my wife and myself, and even my parents and parents-in-law. Then there were job security issues to be managed as the economic environment has changed dramatically over the past two decades or more.?With all these pressing issues, where do I begin?
Naturally, as before, I went back to my 5 Golden Rules and I revisited and updated my 5-Step Strategy:
I started with a plan to finance my children’s tertiary education. In addition, I prepared to take up responsibility and exercise accountability as they moved into the Gen Y age band. I also identified my resources to ensure that they were sufficient to meet all my other financial goals and objectives. Once that was well established, I began to share my plan with my children and provided them with a clearer picture on the necessity and importance of planning, and having periodic reviews. I want to be a Strategic Financial Coach and Mentor to my children. I?believe that the best gift that a father can give to his children is the gift of love and that also means readying them to be equipped for life’s challenges ahead. When you leave behind wealth and riches for your children, they may simply squander them. However, when you are a coach and mentor to them, you will certainly leave a lasting legacy behind
In my periodic review of my financial game plan, I will also review the ability of my plan to absorb the 3 shocks:
1. Time Line Shock
2. Self Funding Shock
3. Market Shock
How well your financial plan can absorb the three shocks is determined also by how confident you are of fulfilling all your financial objectives.
Another vulnerable consideration when you move into the Baby Boom bonus stage is that your children, who cannot possibly be in their youths, are entering into a new stage of life. They will have a new set of challenges and issues to deal with. As such, you must not only be able to handle your own challenges but also be able to be a counsel to them. It is going to be a period of coping with multiple challenges.
Be accountable and responsible when you get into the Baby Boomer’s territory. Your youth is leaving you and you cannot afford to make any major mistakes at this stage of your life. If you are not in this stage yet, be prepared for it. However, if you are already in this stage and are still caught in a messy situation, start looking for a Strategic Financial Coach and Mentor. He or She will be able to guide you. Make sure you find someone reliable, lest they create even more problems and complications for you.
“Is never too late to start anything; remember is not how you die but is how you lived your life that matters.”