From racing cars to skydiving, baby boomers are an adventurous bunch when it comes to recreational activities; but when it comes to investing and planning for the future Bob and Betty Boomer are much more conservative.
In fact, in a 2006 poll by the National Association of Variable Annuities, more than 30 percent of respondents said they would not put any money into stocks, and 64-percent would not put more than 30 percent of their money into equities. Even the youngest of the boomers surveyed insist their investments have to be secure, with more than 50 percent saying they would not put more than 30 percent of their money into stocks.
So how is a savvy but safe investor supposed to ensure an ample retirement income?
It turns out that financing your retirement isn't so different from the way you planned for special purchases when you were a kid - by saving. Whether you saved your allowance and ice cream money in a ceramic pig or collected coins in a glass jar, chances are someone taught you early on that your money was safer under the protection of your friendly, local banker. From that point on you probably had a dog-eared navy blue passbook where you recorded the money you deposited from your paper route or babysitting job.
Now that you're older, stocks, bonds, real estate and collectibles may seem like sexier ways to accumulate wealth; but in your heart you probably still know that the safest way to save is with the security of a bank. There is something to be said for the comfort and security of that FDIC (Federal Deposit Insurance Corporation) logo on the bank door, putting your mind at ease and telling you that your money is safe.
Far from being just the place you head for everyday transactions like checking and savings accounts, starting a Holiday Club, getting a notary's signature or sending a money order, your local bank is a veritable treasure trove of investment ideas that will help you use your money wisely and ensure it's there when you need access to it.
Ask your banker to help you select the best investment vehicles for you based on how much flexibility you need, the interest rate you want, and how long you want to invest your money. You're in the driver's seat with your local bank, and you still get all the benefits of the guidance of trusted banking professionals to help you make informed decisions.
Whether you opt for a CD, money market account, or an IRA, your local bank will help you find the best rate to help grow your money without raising your heart rate; and will make sure you're not penalized if you need to gain access to that money sooner than originally expected. In no time at all you'll be enjoying the benefits of compounded interest without losing sleep every time the stock market hiccups.
This article was submitted by Pat Alley, Riverside Bank president in Fort Pierce.