Child Bounce Caps Sea MarinersMost people have a pretty basic life plan. Get a good job, work hard, raise a family, put the kids through college and then retire and enjoy the golden years. A perfect storm of events should be causing seniors and soon to be seniors to reconsider their golden years.
The foremost issue that is confronting us all, not just seniors, is the current economic mess. An economy that was built on the idea of continual purchasing was a house of cards and apt to fall one day. Today is that day. The bad news, of course, is this economic pull back is going to reset the way we think about building wealth. The question for many seniors and soon to be seniors is whether it is too late for them.
The two financial areas of the great concern tend to be home values and retirement accounts. As well all know, home values have dropped off a cliff and there is no sign of things improving in 2009. This loss of value has been particularly tough because many people have converted their homes into their savings account. They paid down mortgages and used appreciation to create a nest egg for the golden years. Many used equity lines of credit to tap this. Regardless, the loss of value in homes has turned many a nest egg into so many empty shells. The latest reports from the National Realtors Association suggest that one in 10 homeowners may be late or defaulting on loan payments. That is a huge number.
The situation with retirement accounts is not much better. With home prices falling and banks failing, the stock market has taken a beating. Being down 30 to 60 percent is not unusual, but it is a huge number for seniors or those who plan on retiring in the next few years. Most were planning to live off their retirement fund investments, but the amount they expected to collect each month has gone down significantly.
So, what does the future hold for those entering or already in their golden years? Each situation is obviously different, but there has to be some serious concern. Housing and the stock market will bounce back, but when and how fast? Most people believe 2009 is going to be worse than 2008. The trend of pain could continue for some time. Remember, it took World War II to really end the first Great Depression. For many seniors, it is time to bunker down again until things play out.
Alex Jensen is with OrangeCountyCarePlacement.com - a free skilled nursing facility placement service for seniors.
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