10 Best Money Resolutions for Boomers, According to Experts

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It’s a new year for everyone, including the Baby Boomers. This generation of people will find themselves anywhere between their late 50’s to 70’s in the upcoming year. And while this age demographic has a reputation for being able to invest and spend money smartly, that does not mean that there isn’t a thing or two for them to learn in 2024 to keep them on the straight-and-narrow path when it comes to their financial resolutions.

GOBankingRates got in touch with a few financial experts and money managers to get their insights, tips and takeaways for the best money resolutions for Boomers in the upcoming 365 days. Here’s what they had to say.

Retirement Readiness Assessment

This might include an accounting of every cent that you plan on spending, as well as what you can expect to come into your accounts during 2024. Plus, it never hurts to have an emergency fund for the unexpected.

“Conduct a comprehensive review of your retirement savings, investment portfolio and estimated expenses to ensure you’re on track for a comfortable retirement,” said Joseph Catanzaro, a financial advisor at Oak & Stone Capital Advisors.

Healthcare Planning

Planning for health and long-term care costs might not be at the top of your list, especially if you and your family are in good health, but it never hurts to have a course of action in place.

Catanzaro said, “Evaluate health insurance coverage and consider long-term care insurance options to address potential health care costs in retirement

“Anticipating and financially preparing for significant healthcare and long-term care expenses is vital,” added Sean Lovison, the founder and lead planner at Purpose Built Financial Services, LLC. “These costs can be substantial, and planning for them is key to maintaining financial security in later life.”

Debt Reduction Strategy

Catanzaro explains that it is important to develop a plan to pay off outstanding debts before retirement, prioritizing high-interest debts to free up more funds for other priorities. And according to Lovison, one way to do this is to adopt a dynamic spending strategy.

“Adopting a guardrail or dynamic spending strategy is crucial in the face of market volatility,” said Lovison. “One well-known strategy is the 4% spending rule, but there are many others. All of the approaches attempt to balance current lifestyle desires with the need to ensure long-term financial stability, adjusting spending in response to market performance and personal circumstances.”

Estate Planning

There is a morbid darkness that comes with thinking about the inevitable. But if you do not thoroughly plan out your estate, your loved ones will be left to figure out the puzzle in their grief. 

“Everyone knows they should regularly review and update estate plans, but the communication of these wishes is often lost in the process,” continued Lovison. “Communication can prevent family members from disputing documents. This ensures that your financial legacy is distributed according to your wishes and provides clarity and security for your heirs.”

“Review and update your will, power of attorney and other estate planning documents to ensure your assets are distributed according to your wishes,” added Catanzaro.

Social Security Optimization

Catanzaro advised Boomers to “explore strategies to optimize Social Security benefits, including timing decisions to maximize monthly payments.”

Lovison agrees. “Strategically timing Social Security benefits can significantly increase lifetime income,” said Lovison. “Due to longer life experiences, females, in particular, can usually benefit from waiting until 70 to collect social security. Understanding the best time to start drawing benefits is a key aspect of retirement planning.”

Income Diversification

If you are a Baby Boomer, chances are you might be retired or close to it. However, just because you stop working does not mean you have to stop earning an income.

“Explore additional income streams such as part-time work, consulting or passive income to supplement retirement funds and reduce dependency on fixed income sources,” Catanzaro suggested.

MOLST and POLST

The terms MOLST (Medical Orders for Life-Sustaining Treatment) and POLST (Physician Orders for Life-Sustaining Treatment) might not be in your vocabulary, but if you are a Baby Boomer, start to become familiar with them.

These “forms ensure that a patient’s end-of-life care wishes are clearly communicated and legally upheld, providing peace of mind that medical treatments align with their values,” explained Lovison. “These essential documents bridge communication between patients, families and healthcare providers, safeguarding patient autonomy and preventing unwanted medical interventions. These are the most important forms to ensure you have a say in your end-of-life.”

Tax-Efficient Withdrawal Strategy

Catanzaro also said, “Work with a financial advisor to create a tax-efficient strategy for withdrawing funds from retirement accounts.” He suggests Boomers consider factors like required minimum distributions (RMDs).

Maximize Retirement Savings

As retirement approaches for baby boomers, building a substantial nest egg comes with maximizing contributions to retirement accounts. That is typically done by adding the maximum amount of funds to 401(k)s and IRAs that offer tax advantages. 

“The catch-up contributions, available for those aged 50 and older, are crucial in the final years of their career,” says Artem Minaev, a financial advisor and the co-founder at CryptoDose. “These additional contributions allow boomers to make up for any gaps in their retirement savings, significantly boosting their overall financial well-being during retirement.”

Lifestyle Adjustment

The big house. The additional car. The cabin in the woods. The bungalow by the beach. These amenities are nice to have in your golden years, but do you really need them all?

Beyond that, do you need to be paying the taxes, insurance and the other expenses associated with your lifestyle? The answer is probably “nope.”

“Reevaluate spending habits and consider making adjustments to align with your retirement income, ensuring a sustainable and enjoyable lifestyle,” Catanzaro advised.

Remember, financial goals are not one size fits all.

“Individuals need to customize these resolutions based on their specific circumstances, goals, and preferences,” added Catanzaro. “Consult with a financial advisor to get personalized guidance for optimal financial planning.”

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