Every Seven Seconds, One More American Turns 50 - But Are Baby Boomers Financially Ready For Retirement?

Baby boomers are nearing retirement, but are concerned that they will not have enough invested to comfortably retire. They fear they will have to return to work during retirement. How does a person nearing retirement avoid this financial fear?

(PRWEB) May 12, 2004 -- With an unsettled economy, an abundance of political spending and retirement anywhere from seven to 20 years away, aging baby boomers are starting to worry about running out of money-one day. Many baby boomers are taking care of children as well as aging parents and their financial pressures are mounting.

Studies show that 41 percent of baby boomers worry about having to return to work during retirement to make ends meet. Since many baby boomers have invested heavily in mutual funds and with more than 88 percent of mutual funds failing to beat the S & P 500, many baby boomers fear they wont have enough money to sustain them through their retirement years.

People close to 60 years of age are feeling the most vulnerable," said Charles Massimo, a respected financial educator in New York, who specializes in teaching the 50 plus market how to prepare for retirement. When retirement is just around the corner and when your investments are taking a beating, its hard not to worry about your financial future," he said.

Yet lack of performance hasnt been this groups only concern. Recent scandals continue to plague some of the largest investment firms and some unscrupulous business practices, as well as large hidden fees are leaving a trail of annoyed AND confused investors.

Investors feel that they are caught in the middle," said Massimo. Most are facing a difficult decision regarding their portfolio and cant decide on the right balance between bonds and equities. The right advice will make all the difference in the world, yet boomers are sceptical about whom to trust," he said.

The old school of thought was to invest heavily in CDs and bonds as you got older," Massimo said. But what people fail to realize is that in the past those 'safe investments were still fairly lucrative. Today, after factoring in inflation and taxes, a 3 percent bond or CD will actually be a poor choice and will not produce the income needed for the longer retirement most boomers are anticipating," said Massimo.

With more 15 years experience addressing concerns, such as how to preserve assets, increase income and reduce income taxes, Massimo offers an alternative suggestion: instead of loading up on fixed income investments, a better choice to reduce risk is to establish a well-diversified portfolio, which offers baby boomers the right balance of growth, income and safety.

Diversification is a word loosely thrown around in the investment community, but so few advisors take the time to define true diversification," said Massimo. To have your investments last, its so important to get the right balance between risk and return, yet most investors have no idea how to accomplish that," said Massimo.

One little-known fund family helps build a portfolio that strikes the right balance between risk and return. Though well known in the academic world and praised in many financial publications, (most recently in a Jan 11th New York Times article) Dimensional Fund Advisors (DFA), based in Santa Monica, Calif., is one of the best-kept secrets on Wall Street.

DFA manages more than $50 billion for some of the worlds largest pensions, endowments and municipalities and now that same level of investment expertise is available to individual investors," said Massimo. The DFA family of funds offers superior value compared to conventional funds while providing a much lower fee structure than retail funds, such as Fidelity and Putnam.

In the past, DFA could not be purchased by those with less than $2 Million to invest, but recent changes now allow smaller investors to obtain DFA, but only through a select group of financial professionals, including Massimo and CJM Financial.

CJM Financial provides wealth management strategies for and financial education counseling to the 55+ investor. The firm uses innovative research techniques as well as integrity and compassion to provide a dynamic approach to portfolio management. With more than 15 years experience in servicing the senior sector, the company founder Charlie Massimo has a loyal client following nationwide. CJM Financial has offices in both New York City, and Melville, Long Island. For more information visit www.cjmfinancial.net.

Charles Massimo can be reached at 631.465.2073 or 212.551.5624.

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