If you have been following my website for any length of time you know that I like to spice things up by adding articles from real experts. I have quite a few virtual friends that I have met across the country and most of these folks are highly regarded professionals in their fields.
Not like me, huh?
Now, when it comes to being a Baby Boomer expert, I will be the first one to toot my own horn and shout to the world that I know a lot of things and I learn more everyday but in many cases I am nothing more than just the delivery boy. I am not a Baby Boomer expert (yet), nor have not played one on television (yet).
So that's why, on certain topics, I turn to my panel of experts to bring you the best possible information. I have a commitment to bring you expert advice on the most important topics affecting your life as we creep towards retirement.
Well, in my internet travels I have come to know an exceptional businessman, William Noonan, that has just the experience and expert advice we need when it comes to our personal financial planning.
William is a Financial Advisor with "Ameriprise Financial" in San Diego. I first met William at the AARP "Ideas at 50+" Expo in San Diego. William has been kind enough to accept my offer to be a resident adviser on all things financial on my blog. Thanks to William, I will be bringing you articles and blogs, from time to time, that cover financial issues that are important to you.
Other than your health, your financial state has the single most direct effect on your personal enjoyment and comfort you experience as you grow older.
That being said, do you remember when life was simple and the only battle we fought was the "Battle of the Sexes?" You know: Men can do this and women can do that and women are always right and women are smarter than men. The whole Bobby Riggs vs. Billie Jean King thing. Well, as us Baby Boomers got older we find ourselves embroiled in even deeper controversies. These disagreements range from whether or not the polar ice caps are melting to whether or not there are really aliens hiding in New Mexico. It's complicated now-a-days, isn't it?
Are you a Democrat or a Republican? Do you watch "The Voice" or "American Idol"? Chrome vs. Internet Explorer? Donald Trump's hair....Real or Alien? You get my point.
Well, one of the newest battles has sprung up right on our own front porch - Who's better....."Baby Boomers" or "Millennials?"
Recently, William wrote an interesting article to see how much we know about this new battle. It's an intriguing look at the differences in these two generations from a financial perspective. Let's see what William has to say............
By William Noonan
When it comes to finances, there may not be as much difference between Baby Boomers and Millennials as you might expect.
- Texting vs. email (or even snail mail).
- "Angry Birds" vs. "Monopoly."
- "The Theory of Everything" vs. "The Sound of Music."
- "Dancing with the Stars" vs. "American Bandstand."
It's no secret that there are a lot of differences between Baby Boomers, born between 1946-1964, and Millennials, who were generally born after 1980 (though there is disagreement over the precise time frame for millennials). But when it comes to finances, there may not be as much difference in some areas as you might expect.
See if you can guess which generation is more likely to have made the following statements:
1) I have enough money to lead the life I want, or believe I will in the future.
2) My high school degree has increased my potential earning power.
3) I rely on my checking account to pay for my day-to-day purchases.
4) I consider myself a conservative investor.
5) Generally speaking, most people can be trusted.
6) I'm worried that I won't be able to pay off the debts that I owe.
According to a 2014 survey by the Pew Research Center, Millennials were more optimistic about their finances than any other generational cohort, including Baby Boomers. Roughly 85% of Millennials said they either currently had enough to meet their financial needs or expected to be able to live the lives they want in the future; that's substantially higher than the 60% of Boomers who said the same thing.
Although a higher percentage of Boomers--45%--said they currently have enough to meet their needs, only 32% of Millennials felt they had enough money right now, though another 53% were hopeful about their financial futures.
Source: "Millennials in Adulthood," Pew Research Center, 2014
The ability of a high school education to provide an income has dropped since the Boomers' last senior prom, while a college education has never been more valuable. In 1979, the typical high school graduate's earnings were 77% of a college graduate's; in 2013, Millennials with a high school diploma earned only 62% of what a college graduate did. And 22% of Millennials with only a high school degree were living in poverty in 2013; back in 1979, the figure for Boomers at that age was 7%.
Source: "The Rising Cost of Not Going to College," Pew Research Center, 2014
Not surprisingly, Millennials are far more likely than Boomers to use alternative payment methods for day-to-day expenses. A study by the FINRA Investor Education Foundation found that Millennials are almost twice as likely as Boomers to use prepaid debit cards (31% compared to 16% of boomers). They're also more than six times as likely to use mobile payment methods such as Apple Pay or Google Wallet; 13% of Millennials reported using mobile methods, while only 2% of Boomers had done so.
Source: "The Financial Capability of Young Adults--A Generational View," FINRA Foundation Financial Capability Insights, FINRA Investor Education Foundation, 2014
You might think that with thousands of Baby Boomers retiring every day, the Boomers might be the cautious ones. But in one survey of U.S. investors, only 31% of Boomers identified themselves as conservative investors. By contrast, 43% of Millennials described themselves as conservative when it came to investing. The survey also found that Millennials outscored Boomers on whether they wanted to leave money to their children (40% vs. 25%) and in wanting to improve their understanding of investing (44% vs. 38%).
Source: Accenture, "Generation D: An Emerging and Important Investor Segment," 2013
Millennials may have been around the track fewer times than Boomers have, but their experiences seem to have given them a more jaundiced view of human nature. In the Pew Research "Millennials in Adulthood" survey, only 19% of Millennials said most people can be trusted; with Boomers, that percentage was 31%. However, Millennials were slightly more upbeat about the future of the country; 49% of Millennials said the country's best years lie ahead, while only 44% of Boomers agreed.
However, the difference between the generations might not be as significant as you might think. In the FINRA Foundation financial capability study, 55% of Millennials with student loans said they were concerned about being able to pay off their debt. That's not much higher than the 50% of Boomers who were worried about debt repayment.
It reminds me of the song from Timbuk3 - "The Future's so Bright, I Gotta Wear Shades."
What do you think?
It's easy to tell them about it.
Forward it on to them or just email them my blog link at www.survive55.com.
The more Baby Boomers we can help, the better place we make this world !!!
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