Friday, May 6, 2011

Money Matters to Avoid for Baby Boomers

Money matters

You can be young without money but you can't be old without it. ~ Tennessee Williams

And in the end it's not the years in your life that count. It's the life in your years.
~ Abraham Lincoln

The most important thing for baby boomers is to preserve their wealth and the key is to last what you have as long as possible.  It is vey likely that you will live much longer because of better healthcare. Here are the things to avoid and protect your hard-earned money:

  1. Gullible: Don’t get cheated by unreliable sources of investment schemes. Do not believe fully in what you have heard. Take a cautious approach.

  1. Greed: Do not be tempted by high and fast return. In most cases they are too good to be true.  Safety of your capital is the upmost importance.

  1. Follow others: Do not follow the crowd and do what they do. Do your homework to determine whether the investment channel is suitable for you. 

  1. Be a guarantor: Avoid being a guarantor. When someone is required to get a guarantor to obtain a loan, it means the person is not qualified for the loan that he has applied for. Most likely you will end up servicing the loan yourself.

  1. High profit: Investment with high profit means high risk. It is better to go for solid investment which is low risk with steady return. 

  1. Sell your own house and live with your child: You son may be kind enough to ask you to live with their family, but it is a risky decision to sell you own house and live with them. How sure are you that they will be able to take care of you until your last days? Nothing is certain in this world and the best assurance is a house of your own to live in.

  1. Unhealthy lifestyle: Medical expenses are escalating like nobody’s business. The only prudent thing to do is to take care of your health and live a healthy lifestyle to avoid incurring huge medical expenses and reduce your savings.    

He who has good health is young. ~ H.G. Bohn

“It’s a very funny thing about life; if you refuse to accept anything but the best, you very often get it.” ~ William Somerset Maugham

Time is like money, the less we have of it to spare the further we make it go. ~ Josh Billings

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