Top 8 Financial Questions That Baby Boomers Want to Ask Financial Experts

Key Takeaways Baby boomers' concerns include whether they have enough saved for retirement , taxes, and managing their legacy. Financial advisors claim the best way to ease these anxieties is through planning. That could include testing to see if retirement income will be enough before retiring, ensuring withdrawals don't put you in a higher tax bracket, and prefunding a health savings account (HSA). For many baby boomers, retirement and growing old is a frightening prospect. Gone are the days of the employer paying a guaranteed lifetime pension income. Now, the onus is on them to build one and try to figure out how much they’ll need to live on while accounting for various unknown variables such as market volatility, lifetime expectancy , unpredictable healthcare costs , and inflation. Experts suggest that if you plan to withdraw money in the next five years, that's short-term money—keep it out of stocks and in vehicles with little downside risk.FG Trade Latin / Getty Images Here are the biggest questions keeping people ages 60 to 79 up at night-with answers from financial experts. Top 8 Financial Questions Baby Boomers Want Answered 1. How Much Money Will I Need to Retire Comfortably? Derrick Kinney, founder of Success for Advisors and Good Money Framework : “I’ve discovered one simple, proven strategy: live on a practice-retirement budget. Here’s how it works: 12-18 months before retiring, practice living on the amount you think you’ll need-while you’re still earning your full income. It’s a no-risk test drive. Most people are surprised by what they learn. Some discover they can live on less and retire earlier than expected. Others realize they may want to work a bit longer." 2. Will I Outlive My Retirement Savings? Stoy Hall, CEO and founder of Black Mammoth : “It happens when spending outruns growth or income dries up. We keep expenses from outpacing the growth of your assets. We hold a dedicated cash fund for ugly markets, so we are not forced to sell at a loss. That avoids sequence risk , the silent killer. We don’t marry a 3% or 4% rule [for the percentage of your retirement funds to withdraw each year ]. We set a smart starting paycheck, watch the portfolio, then adjust. If markets drop, we pause raises or trim wants. If markets run, we give you a raise. Flexibility is key; you must retain cash-flow flexibility. This planning must be done prior to retiring.” 3. What if Inflation Rises While I’m Retired? Hall said, "Social Security has a cost-of-living adjustment [that] keeps up with inflation. Our investments will also adjust over time if we keep some growth in the mix. The real lever is spending. When prices bite, pull back on nonessentials. Maybe fewer big trips for a season. Maybe different choices than what you have always done. Keep core bills matched to steady income and let the portfolio work." 4. How Will Taxes Impact Me in Retirement? Carolyn McClanahan, founder and president of Life Planning Partners : “People...

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