A report from online lending exchange site Lending Tree shows that boomers in Houston are carrying more debt than their counterparts in other big cities, according to this article on MarketWatch. The average debt balance in the Texas city was $31,626. Little Rock, Ark., and San Antonio were in second and third place with median balances of $30,767 and almost $30,000, respectively. The report looked at median debt balances for the 100 largest U.S. cities. Baby boomers in Dallas, Oklahoma City, and McAllen, Texas, also hold considerable debt balances, the report says. Most experts advise clients to pay off debt before retiring to improve their financial prospects in the golden years, according to the article.
Despite having solid plan for retirement, seniors will still end up trying to figure out what they truly want to accomplish in the golden years, getting the right balance between engagement and freedom, writes an expert on The Wall Street Journal. "I think those words, a balance between engagement and freedom, come closest to describing what most people, myself included, are looking for in later life—a mix of activities that will allow us to stay involved, in mind and body, with our community, friends and family, and still allow us to enjoy the fruits of our working years. And that can be tricky," writes the expert.
Ellevest CEO Sallie Krawcheck says that clients should avoid procrastinating when it comes to building their nest eggs, saving as soon as possible to secure their retirement, according to this article on CNBC. They should set aside at least 10% of their salary and invest it in a retirement account, or start saving with a small percentage and boost their savings rate over time, says the expert. “How long does it take you to fix your bag? No time, and yet we let this money go right past us.”
Clients who are approaching retirement need to develop a strategy for generating income from their investment portfolio before they retire, writes an expert on Kiplinger. To do this, they should abandon the 4% withdrawal rule, review their tolerance for risk and consider ways to develop sources of guaranteed retirement income. Pre-retirees should also create a retirement distribution plan that accounts for their investments with the needed income in mind to support their preferred lifestyle in the golden years.
