“Baby boomer is a term used to describe a person who was born during the Post-World War II baby boom between 1946 and 1964. Following World War II, several English-speaking countries – the United States, Canada, Australia, and New Zealand – experienced an unusual spike in birth rates, a phenomenon commonly referred to as the baby boom. The terms “baby boomer” and “baby boom”, along with others expressions, are also used in countries with demographics that did not mirror the sustained growth in American families over the same interval. ”
That would make the oldest baby boomers 62-63, and the youngest about 45. Basically, the oldest of the group are entering into retirement now or are just a couple of years from retirement. On the other hand the youngest are around 20 years away. By now the oldest of this group should have changed their portfolio holdings to accomodate their low risk tolerance, and the youngest are likely to have half of their retirement investments tied up in equities or stocks or more likely in mutual funds through a 401k plan. What about those in the middle? Hopefully they’ve changed their asset mix from the riskier to something safer, however, it is unlikely and they’re overexposed to risks they may not be able to recover from in a few short years.
This brings in some harsh realities in finding ways to survive for many of our parents. As a generation “x’er” myself, I can see that there is the potential that I will have to support them financially some time down the road. Otherwise, mom and dad may be forced to work until they’re physically incapable, possibly resulting in the inevitable financial drain on us. So, not only is it important for us to pay attention to our own portfolios as we age, it could be argued that making sure our parents understand what is going is equally or even more important. Even more, it is important not to act irrational at times like these, trying to bail out your parents by making large changes may actually hurt them more than help them. Be wise, read my site and learn more about evaluating their current situation and their (and your investment horizon) options to address this financial crisis properly.
The only bright side to the picture for us x’ers is the fact most of us still have 30 years of investing left, and if history is any indication the market will rebound and we will all make back far more than we’ve currently lost.
Confused about the bailout? Read my article that explains what is going on in really simple terms.