💰Are you "Peak Boomer"?

Time flies when you’re making the most of your money and we can’t believe how fast 2024 is zooming by. Whether it’s investing, saving, or working on your personal goals it’s time to stop putting things off for tomorrow. Tomorrow happened two months ago so put on your grown-up pants and tackle those goals head on.

A wealth of resources and tools awaits you today, so here’s to supercharging your money, one step at a time 

- Milan

IN THE KNOW

“Peak Boomers” Are In Trouble 

The latest report from the Alliance for Lifetime Income's Retirement Income Institute underscores the financial challenges facing the youngest baby boomers as they approach retirement. With over 30 million boomers born between 1959 and 1964 turning 65 this year, many are ill-prepared financially for this significant life transition. Dubbed the "peak boomers," this cohort faces economic headwinds, with the report revealing that more than half have $250,000 or less in assets, leaving them heavily reliant on Social Security income during retirement.

This impending retirement wave could have far-reaching consequences, impacting both the economy and consumer spending. Employers may need to replace as many as 14.8 million peak boomers, potentially decreasing economic productivity, while consumer spending is expected to decline significantly. The shift away from defined benefit pensions has left many retirees with inadequate savings and forced them to rely heavily on Social Security to make ends meet.

This scenario showcases how important the proper use of contribution plans like a ROTH IRA can be to guarantee a fulfilled life. Retirement savings are a vital part of financial security and if you aren’t working towards them yet, consider this your reality check. Learn all about the accounts you need to be utilizing starting now in our step-by-step money plan. Take our quiz to fully customize your guide at milansingh.co/money-quiz

Subscription Skipping 

A significant number of Americans are becoming more impulsive when it comes to canceling their streaming service subscriptions, with over 29 million subscribers discontinuing three or more services within the last two years, according to Antenna, a subscription research firm. This shift reflects a departure from the traditional model of sticking with a single provider, as viewers now easily switch between platforms with just a monthly contract and a click of a button. However, this trend poses challenges for major media companies, particularly as they transition from the profitable cable bundle to streaming, with platforms experiencing substantial losses and resorting to price increases to offset costs.

While this newfound flexibility benefits consumers, it introduces complexity for streaming services, with "serial churners" accounting for a significant portion of new subscriptions and cancellations: a smart way to minimize costs and bring down bills. To mitigate churn, some companies are considering reintroducing bundled services, offering multiple subscriptions together to discourage cancellations. Additionally, platforms are leveraging promotional offers and exclusive content previews to retain subscribers. Despite skewing slightly younger, this behavior is widespread across demographics, driven by factors such as lifestyle changes, price sensitivity, and a desire to streamline expenses amidst rising subscription costs.

Managing these varied subscriptions and fluctuating costs in your budget helps build good money habits and sustained financial stability. Learn key budgeting techniques that will help you save more and get rid of debt permanently here.

MONEY MYTH OF THE DAY

“You need a financial advisor to manage your money effectively”

The myth that you need a financial advisor to manage your money effectively is prevalent but not necessarily true for everyone. While financial advisors can provide valuable guidance and expertise, managing your finances effectively is something you can do on your own with the right tools and knowledge. With the abundance of online resources, budgeting apps, and educational materials available today, individuals have access to the information they need to make informed financial decisions without necessarily relying on a professional advisor.

Taking control of your finances doesn't mean you have to navigate the complex world of investments and financial planning alone. While some situations may warrant the expertise of a financial advisor, such as complex investment strategies or retirement planning, many aspects of personal finance can be managed independently. By educating yourself about basic financial principles, setting clear financial goals, and consistently monitoring your progress, you can take charge of your financial future and make decisions that align with your objectives and values.

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