Post 20, In Series
In the year 2020, the youngest Boomer will turn 56. Think about this for a moment in less than a decade; the youngest Boomers will all be Senior Citizens.
The Boomer generation was at one time full of fire and changing the world — the Boomer generation lately has been accused of flaming out and no longer relevant.
According to dictionary.com, “OK boomer is a viral internet slang phrase used, often in a humorous or ironic manner, to call out or dismiss out-of-touch or close-minded opinions associated with the baby boomer generation and older people more generally.”
The catchphrase, “Ok Boomer,” has been making the social media rounds and reinforcing the thinking; boomers are not connected with the rest of the world, living in their heydays.
Is Boomers’ time is over and in Millenials and Generation X’s rearview mirror?
My concern is not about Boomers flaming out or not being relevant; my interest is the number of Boomers running out of sustainable income and wealth.
The Boomer generation forecasted to live longer than any other generation, and now with different ages having poor health habits and the opioid crisis, Boomers are predicted to have longevity past preceding generations.
Between 2030 and 2040, there will be over one million people over the age of 100, ten times the current number. These million centenarians are only the tip of the global grey wave to populate this earth.
You might think the coronavirus will impact these numbers; remember it is all about one’s health. Many Boomers can defeat the coronavirus because of their ability to take care of the physical health side of life; it is financially where boomers may not have the stamina.
Recently in a column written by Bhaskar Sunkara, the story was about the financial insecurity facing older Americans but (half of those over 65 have less than $25,000 in savings, and one in four have less than $1,000) https://www.theguardian.com/commentisfree/2019/nov/06/ok-boomer-meme-older-generations
The longevity of Boomers will put a strain on most countries; many Boomers will not have the funds to support their essential costs to live.
The coronavirus is impacting all world governments severally, and the countries’ indebtedness will put an unbelievable strain on all government programs, including health care and long-term care facilities.
Boomers will need to protect themselves against being cast aside and considered disposable, look at the issues at long-term care facilities and how we are treating our seniors over eighty. We, as a society, have allowed coronavirus to run rampaged through the long-term care facilities, with no one having consequences for their actions.
Many Boomers hanging on to their homes should be turning their most valuable asset into the opportunity to support themselves in their advancing years. Boomers’ homes maybe their last defence from society’s attitude to ageing.
Boomers must learn to share their homes and give up some of their pride, Ok Boomer.
They must find a way to convert their homes into multiple living units. They need to attract a younger group into their homes and lives to help maintain homeownership until their last breath.
If you think long-term care facilities will be better after the coronavirus pandemic, guess again. It takes money, and it takes personnel, we as a society are going to be short of both resources.
I am not a big fan of any of the reverse mortgages, line of credits, or any other scheme to gobble up your equity and eat up most of your wealth before you depart this world and have little left as a legacy.
You might not feel comfortable with purchasing investment real estate, but being a Burden Boomer is not what many of us envisioned.
There is still time for sustainable income for life, how?
“The secret of change is to focus all of your energy, not on fighting the old, but on building the new” – Socrates.
What does this “New” look like?
My financial advice has been consistent over the last several years; turn part of your home into revenue by developing an income suite or by using current or new zoning changes.
You have options.
Many Boomers own bungalows. Bungalows converted into the development of a full income suite in the basement.
Many towns and cities are offering grants to help you access rental income from your home by adding a revenue suite.
Also, many towns and cities look to create higher density. We see rezoning, towns and cities converting more areas into R2 and R4 zoning, allowing the development of duplexes or fourplexes on these properties. This conversion of changing your property from single-family use to a multiple-family use is easier than you think.
This option offers not only the possibility of income, but it also provides additional wealth creation through selling part of the development. (idea for another blog post)
Women are living longer than men.
Many of my Boomers’ female cousins and friends are finding themselves living in a big home alone. Their spouse has passed away. (Okay fellows prove me wrong)
Many of these women have friendships that have stood the test of time. These widowed women end up travelling together and doing many other activities with their friends who are in the same situation, single big home, and no spouse.
I suggest if you have a travel buddy, maybe it is time for both of you to consider; one friend sells their home and becomes a tenant and roommate in another person’s home. This move lowers your cost of living, frees up some money to enjoy life, and allows your friend to keep her home and some extra cash for living expenses.
You both could consider selling both of your homes and buy something more modest that both of you could live in and share equally all costs. You again free up some equity to enjoy life. (remember to get legal advice to protect your assets)
You could create shared accommodation ideas, go for a coffee, and discuss the options with a good friend.
Any one of these options takes you from being a Burden Boomer to a Blossoming Boomer later in your life.
It is a wake-up call; right now your governments are giving away Boomers one chance to have adequate funds and human resources to take care of you in your golden years.
The scientific and medical world will develop a coronavirus vaccine.
Still, the economic side effects of this pandemic have ruined the financial health of each country and its citizens for decades to come.
Living into your eighties, nineties and beyond, should not be viewed by society as long enough.
Ok, Boomers, are you ready to build something “new” for yourself before this pandemic is the end of you?
From Our Happy Place to Yours, Be Healthy, Be Safe Until Our Next Post