As the baby boomer generation prepares to retire, some are facing financial difficulties as a result of poor planning and the recent economic downturn.
Aside from the recession, job and stock losses, caring for adult children, and other financial obligations have prompted some baby boomers to tap into their retirement and life insurance plans. According to CNNMoney, those hoping to quickly set aside funds for heirs are not out of luck.
The first step may be to sit down with your intended beneficiaries to explain the situation, followed by a meeting with a financial adviser.
“Still, wouldn’t it be nice to leave something more tangible than holiday customs and of greater value than your old engagement ring?” the report says. “After all, cash left for a grandchild’s education or to secure a cherished family cabin is a reflection of your values, too.”
Taking action to reallocate and invest funds can also significantly increase a consumer’s savings in a short period of time. According to the report, buying a life insurance policy is the simplest way to create something out of nothing.
Those who have a traditional IRA may want to consider converting to a Roth IRA. These savings can quickly add up and result in tax-free benefits for your heirs. According to a separate CNNMoney report, taking advantage of employers’ 401(k) matching plans can also result in quick savings over a short period of time.