Here's one that you probably didn't see coming, but if you give it a little thought it'll feel true. It seems that we baby boomers have too many choices!
I remember growing up with a black and white TV that got 4 stations. We were lucky. Most people got 2 or 3. Then came UHF and one more station. Next came cable and satellite and now with streaming it's impossible to say how many stations you and I have available to us.
The same thing has happened to most things in the financial world. A generation ago no one had heard of a reverse mortgage. Now you and I need to decide if it's a good idea for us. Figuring out when to take Social Security requires a fancy calculation. We have a link to one.
A recent article in USA Today discusses the topic of boomers being overwhelmed by all the choices they faced. It's based on a survey by Prudential. Among the finding were that people who had fewer choices for their 401k plans selected investments with lower administration costs.
Medicare Part D is another area where the wide range of choices actually cause people to freeze in place. Instead of evaluating the options, they're overwhelmed and just don't make any decisions.
What's the solution? Naturally I think that information sources like TDS are part of the answer. But I also think that it's a matter of breaking things down into understandable pieces. Many complex decisions are made up of a number of smaller decisions. So by focusing on the smaller decisions one at a time we can move towards our goal without feeling like we're being crushed!
Keep on Stretching those Dollars!
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