Retirement Strategy: What Will The Boomers Do? (Part 21)

Includes: BAC, GE, JNJ, NLY, T
by: Regarded Solutions

There are roughly 79 million "Baby Boomers" who were born between the years of 1946 and 1964 (check this out), and about 10,000 are retiring every day.

This wonderful report says:

Beginning January 1st, 2011 every single day more than 10,000 Baby Boomers will reach the age of 65. That is going to keep happening every single day for the next 19 years." As per recent statistics noted in the report mentioned in the next paragraph. This trend will not stop for the next several decades and by that time, the next generation will be thinking about rocking chairs and bingo.

Reviewing Our Strategy

Remember that we have a core portfolio right here that we are all following. I am holding myself accountable by updating everyone on the portfolios performance and following our core strategy to make the most of what we have.

Our current portfolio consists of ExxonMobil (XOM), Johnson and Johnson (JNJ), AT&T (T), General Electric (GE), Annaly Capital (NLY), Southern Company (SO), Procter & Gamble (PG), Philip Morris (PM), Intel (INTC), Realty Income (O), Chevron (CVX), E.I. du Pont (DD), Duke Energy (DUK), Coca-Cola (KO), and Bank of America (BAC).

  • Hold our core position and wait for opportunities to add to it.

  • Sell covered calls on any or all positions when the premiums warrant it.

  • Sell puts to add to a position if the premium warrants it, at a price that is a significant discount to our average.

  • We have decided to take dividends in cash and place them into our cash reserves.

  • Deploy cash reserves to expand our core with more dividend producing stocks.

  • re-evaluate our positions regularly and "take" what the market gives us (profits) from time to time, adding more to our cash reserves.

I wish more folks would refer back to my last article and see just how well "Team Alpha" has been doing.

What Will The Boomers Do?

I can recall back in the Jimmy Carter era, CDs were paying 15-18% and home prices were soaring also due to inflation. That era alone allowed our folks to retire on their home equity, Social Security, some small savings and maybe a few stock investments. but mainly with very safe FDIC insured bank Certificate's of Deposit under their arms as they sold their homes and moved to the land of sunshine, with no state taxes and lower costs of living.

The same cannot be said for the Boomers. Many of us have not been quite as fortunate on any of the areas of wealth created by our parents. CD rates are puny, housing has deflated, and pensions are an endangered species.

We have seen the housing market collapse just in time for the initial phase of Boomers not be able to rely on that to any significant degree. We are also seeing the destruction of the corporate pensions that were so vital not only to secure a safer retirement but also to keep employees of those days happy and in one place.

Most Baby Boomers do not have a traditional pension plan because they have been going out of style over the past 30 years. Just consider the following quote from Time Magazine:

The traditional pension plan is disappearing. In 1980, some 39 percent of private-sector workers had a pension that guaranteed a steady payout during retirement. Today that number stands closer to 15%, according to the Employee Benefit Research Institute in Washington, D.C.

Boomers will need to develop a strategy to replace those areas of created wealth from years gone by, to insure that we have a successful and safer retirement, if indeed we intend to retire at all.

According to another recent survey, 24% of U.S. workers admit that they have postponed their planned retirement age at least once during the past year.

And according to a recent AARP survey of Baby Boomers, 40% of them plan to work "until they drop".

Since I started to share my experiences here on Seeking Alpha, as well as offering what I consider to be the most direct, straightforward, time-tested and successful strategy for a more secure retirement, I have received hundreds of direct messages from those retired, ready to retire and even the younger folks who are wisely planning well in advance. All of them has made what I do here extremely fulfilling in MY life and I believe vital for everyone within the investment community.

I cannot stress enough, the importance of developing a strategy for yourselves as you move ahead in your financial lives. I firmly believe that as windows close, doors open. Take control of your future finances and walk through those doors of opportunities, and you can have the kind of retirement that you want.

We are Seeking Alpha here, I hope we each find our "Retirement Alpha".

Keep reading my articles, keep focused, and remember what we are here for!

Disclosure: I am long BAC, XOM, JNJ, NLY, T, O, GE, SO, INTC, KO, PM.