Chattanooga Money Experts Weigh in on the Baby Boomer Retirement Wave and Share Advice on Reaching ‘the Golden Years’ in Financial Comfort
The baby boomer retirement wave is transforming the financial planning industry, as over 10,000 people per day turn 65 years old through 2030. With a shortage of advisors and a shift from what the world looked like to what it is going to look like, the financial industry is experiencing a significant pivot. Experts Ashlee Patten, owner and CEO of The Patten Group, and Garry Thurman, owner and CEO of Guardian Investment Advisors, share their insights and advice on the impact of the baby boomer retirement wave and how to achieve financial comfort during the golden years.
The Impact of the Baby Boomer Retirement Wave
Patten notes that the financial advisor population is already skewed, and the pandemic has worsened the shortage of advisors available to provide advice to those who seek it. Baby boomers, who were heavily represented in the financial services industry, are leaving the workforce, and this loss is anticipated to create a gap in the financial services industry. Additionally, Patten mentions that advisors should be prepared for inflation as it could become a stress point in the future.
Thurman highlights the issue of longevity risk, with people living longer and running out of money becoming the number one fear in America. Financial planners must create written income plans that prepare boomers for retirement and ensure they enjoy financial comfort during their golden years. Guardian Investments is currently fully booked, as many boomers seek advice on how to manage their wealth during retirement.
Advice for Achieving Financial Comfort
Patten discusses the competition heating up for 401(k) rollovers, and the new Department of Labor Rollover rule designed to protect boomers from financial advisors taking advantage of them. As many people have taken their money out of their 401k to move it to more expensive financial products with less liquidity or penalties, the new rule aims to prevent gimmicks and standardize information comparisons across products.
Thurman emphasizes the importance of creating a written income plan for boomers, as longevity risk and running out of money are the number one fears for Americans. Financial planners must be able to determine if their clients have enough money to retire and configure cash flow streams to fund retirement, ensuring clients are financially secure during their golden years.
The baby boomers are living longer, and the number one fear in America is running out of money during retirement.
Financial planners are in high demand due to the influx of boomers retiring and seeking advice.
The Department of Labor Rollover rule aims to protect Boomers from financial advisors taking advantage of them via rollover strategies.
As baby boomers continue to retire and leave the workforce, it is essential to seek advice from financial planners who can help in creating a written income plan, managing cash flow, and preparing for longevity risk. With the shortage of advisors and competition heating up in the financial planning industry, it is crucial to ensure that retirement planning is informed and reliable.
Navigating the baby boomer retirement wave can be challenging, but seeking advice from financial planners like Ashlee Patten and Garry Thurman can help prepare for financial comfort during the golden years. Creating a written income plan, managing cash flow, and understanding retirement planning is essential to ensure you are financially secure and prepared for longevity risk.