No question, the economy is suffering. People are suffering. My brother, the Salvation Army minister, tells me that he prays every day for the weather to stay below freezing, because then the electric company in his town can't cut off service to folks who owe money. Last week it reached 38 degrees and he was scrambling to find money to pay off delinquent bills, so these people could have heat and light.

These people are generally not our clients. Most have few options to improve their lives, and most know that retirement will not be their reality. But thinking about them helps me put my own clients' lives into perspective. My clients will have more choices and some flexibility and it's my job to help them make the most of it.

Change for the Better

With the economy so difficult, you would think people are postponing their retirement. Not true. Last week, I talked to a client whose retirement date is set for nine months from now. We revisited her plans and she still wants to retire in November. What has changed is her expectation for that retirement. She knows her resources are different, but she also knows she will be making a life change for the better.

One month after she retires as a hospital administrator, Marybeth will move to a small college town and begin her teaching career. Teaching is something she's always wanted to do, so this retirement decision is the fulfillment of a lifelong dream. As far as she's concerned, she's retired. Teaching is the fun stuff; the fluffy, sweet icing on the retirement cake.

The fact is, Marybeth can't afford to retire. The recent, precipitous decline in her portfolio demands that she continues to work. But I wouldn't tell Marybeth that. She is 59 years old, a roaring baby boomer. Baby boomers do not respond to "can't." You don't tell boomers they can't retire. They tell you they won't retire because they need to stay mentally and physically active; they need to stay productive and useful. They want to do something that is personally rewarding. They will never tell you they can't retire because they don't have the resources, even when that's true.

The Boomer Dilemma

Let's step back a minute and look at boomers. They are 77 million strong. Between now and 2025, one boomer—the product of the post-World War II birth explosion, born between 1946 and 1964—will turn 591/2 every seven seconds. I will be that boomer six months from now. We are big consumers, known for driving or wearing assets rather than saving or investing them. (My 12-year-old nephew walked into our house one day and announced, "This looks just like Sharper Image." Sadly, Sharper Image went bankrupt when it became clear that we boomers had already bought every gadget they offered.)

Not only have we been ber- consumers, we've made massive use of credit and are still paying for it. I like to tell people that the difference between my generation and my parents' is that when my folks needed a new refrigerator-the operative word being "needed"-they saved first, then bought one. When my generation wants—operative word, "wants"—a refrigerator, we buy it on credit, have it delivered instantly and pay for years. This overreliance on credit has threatened our future. Now we're seeing the terrible effects.

We're products of the "immediate now" and the paper-plate generation. We are used to getting what we want instantly; we thrive on instant gratification. More important, we have always tossed out whatever was worn or broken, because it was so easy to replace it with something new. Recently, I think, we've made the connection: We're older, but not useless, and perhaps even more valuable due to our age and experience.

What's more, we boomers often wind up supporting grown children who have moved into the spare bedroom with three kids and a dog. Add to that the care we give to aging parents—whether physical, financial or both. These circumstances strain the already limited resources we have earmarked for retirement.

Damaged Portfolios

The economic typhoon of the past several months has seriously damaged boomers' portfolios and even the gurus in Washington have no clue how long recovery may take. Advisors know that prolonging withdrawals from a retirement portfolio will have a positive effect on the success of that portfolio in future years. The worst thing a boomer can do at this juncture is to retire and begin selling in this low-return environment.