As retirement for the baby boomer generation is quickly approaching, some are facing financial struggles due to poor planning and the recent economic recession.
In addition to the recession, job and stock losses; caring for adult children; and other financial obligations have caused some boomers to dip into their retirement and life insurance plans. However, all is not lost for those hoping to quickly set aside funds for heirs, according to CNNMoney.
The first step may be sitting down with your intended beneficiaries so they understand the situation, then 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 boost a consumer’s savings over a short period of time. Purchasing a life insurance policy is the simplest way to make something out of nothing, according to the report.
Those with a traditional individual retirement account may also consider converting to a Roth IRA. These savings can quickly build over time and lead to tax-free benefits for your heirs. A separate report by CNNMoney suggests taking advantage of employers’ 401(k) matching plans, which can also lead to quick savings over a short period of time.