3 Things Boomers Should Consider Buying in Retirement

There are countlessfinancial newsstories and articles about how much baby boomers should save for retirement, but not as much attention is paid to things that they should actually buy. While unrestrained spending is certainly a no-no in retirement, there are purchases that can increase your income stream, make your life easier or even allow you to save money going forward. These are the types of buys that boomers should consider.

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Investments

Many boomers are aware that they should hold a portfolio of investments when they retire, but not all are. In fact, some financial experts may be inadvertently supporting the notion that you dont need investments in retirement by the way they present their calculations.

For example, youll commonly see or hear that you should calculate the amount you need in retirement by multiplying your annual expenditures by the number of years you expect to live in retirement. So, if you plan to live on $50,000 per year and anticipate being retired for 30 years, youll need $1.5 million. But thats only true if you dont invest your nest egg even in a savings account and simply whittle down your balance every year. But if you instead invest that money and achieve a relatively modest 5% annual return, you wont need $1.5 million to last your 30 years, youll only need about $775,000, or roughly half that amount.