From Broke Boomer to Blazing Bloomer : Part 1

The Last Chance Millionaire: It's Not Too Late to Become Wealthy
by Douglas R. Andrew

According to Doug Andrew, the bestselling author of Missed Fortune 101, too many Americans are being led down the wrong financial path. Even worse, many Baby Boomers find themselves panicking - fearful that they've already fallen too far behind to ever catch up. In this indispensable and eye-opening guide, Andrew provides fresh new pathways to reaching financial security - pathways that all Americans need to consider now.

Centering on his Three Miracles of Wealth Accumulation: the Miracle of Compound Interest, the Miracle of Tax-Favored Accumulation, and the Miracle of Positive, Safe Leverage, Andrew explodes many of the commonly-held myths about 401ks, pensions, paying down one's mortgage, and other forms of retirement planning. Along the way, Andrew offers unique strategies that will not only increase your wealth, but also help readers enjoy their best years while securing their future.

Chapter 1

Remove the Obstacles to Your Future Financial Well-Being

"If we take a late retirement and an early death, we'll just squeak by."

IS THAT SCENARIO A LITTLE TOO close to home to get a laugh out of you? If so, you've got plenty of company. Whether everyone will have enough money to retire is a question that looms large today for 78 million Americans-the Baby Boomers born between 1946 and 1964. If you're among the oldest Boomers, those born right after World War II, you will have to face this issue sooner rather than later. After all, according to the U.S. Census Bureau, 330 of us are turning 60 every hour.

I say "us," because I am one of you. I was born in 1952, and like you I am part of the largest population explosion in history. So we're in this arena together. As a financial strategist and retirement specialist, I know it's one thing to talk about the game, but another thing to play it.

It's likely we've all carried a common dream throughout our lives-achieving financial independence. Creating wealth. Maybe even obtaining that elusive status: "millionaire."

Well, here we are, with retirement just up ahead. Have you arrived?

Magazine articles and television news sometimes suggest that Boomers all have bundles of money, as well as a nice big home, and retirement IRA and 401(k) accounts that are growing steadily in value.

Unfortunately, it's not that simple.

To begin with, even the oldest Boomers may not expect to quit working on their 65th birthday. Whether it's out of financial necessity or lifestyle preference, many do not anticipate retiring in the traditional sense.

It has been well documented that unlike our parents' generation, we are less interested in "playing golf every day." We are more active, more likely to work beyond the traditional retirement age of 65, and, unfortunately, less financially prepared than our parents were for the "golden years."

According to the Bureau of Labor Statistics, the average age of retirees is 68. The life expectancy for a normal, healthy male age 65 is another twenty years, to age 85. If a person stops earning income at age 68, there is now a seventeen-year gap to cover with retirement resources, rather than the five-, ten-, or twelve-year gap that existed just one to two generations ago. Based on the better health and mortality (life expectancy) of the upcoming Baby Boomer retirement force, "retirement" in the traditional sense should now be at age 73! For many Boomers, retirement planning needs to provide adequate resources to last thirty years or longer. This book will help prepare you so you don't outlive your money.

Beyond whatever size nest eggs we may have nurtured, Social Security is often something Boomers expect to incorporate into their retirement. But there are conflicting statistics and studies about how much money we will be able to collect in Social Security, as more and more of us begin dipping regularly into that wellspring of dollars established by the federal government some seventy years ago.

In fact, the national Social Security Trust Funds could be headed for serious trouble. The 2006 Trustee's Report projects that the Social Security Trust Funds will totally run out of steam by the year 2040 unless there is serious reform.

I maintain that Social Security benefits should be viewed as a supplement to your retirement, not as your primary source of income. It should become a bonus for, not the basis of, your planning.

What Makes You Anxious About Retirement?

Are you concerned about the possibility that, like the pair in the cartoon, it's too late to plan for a comfortable retirement? Do you believe you have not saved enough-or anything substantial at all- and must start from scratch? Do you fear that not only will you never become a millionaire, but that you may end up a Broke Boomer?

Many of your fellow Boomers have the same concerns.

• DO you think it's too late in life to catch up with wealthier friends, customers, or business associates in your circle who seem to have it all-a great house, a second getaway home, a plan for making their money last?

• ARE you worried that even if you do have enough, you might outlive your money and wind up dependent on charity or your children when you are old?

• DO you believe you are powerless to reverse the course of your personal financial history?

At age fifty-four, when I sit down and project myself into the future ten or fifteen years, I ask myself, "What has to have happened in my life leading up to age sixty-five or seventy, both personally and financially, for me to be happy with my progress toward my golden years?"

When I visualize how I want to live during retirement, I know that realistically I need to focus now on eliminating the barriers that would prevent me from realizing my vision. I also need to determine which strategies, resources, and opportunities I can use right now in order to achieve my goals. Lastly, I need to harness and direct my best abilities and strengths to optimize all of my assets.

Copyright © 2007 by Douglas R. Andrew

About the Author

Douglas Andrew is currently the owner and president of Paramount Financial Services, Inc., a comprehensive personal and business financial planning firm with several divisions.In addition to his successful practice with individual clients, Doug also runs numerous investing seminars for professional financial planners. It is in these seminars that Doug sells thousands of copies of his book.