Don't Kid Yourself: The Boomer Generation Shouldn't Fall for Vancouver Sun (01/22/01) Vol. 104, No. 47 p.C8; Kane, Michael
A new book points out common myths about retirement planning
that baby boomers should avoid. Called "The Seven Dangerous Money
Myths," the book lists several falsehoods that baby boomers buy into
when planning for their retirement. Chief among the pitfalls is that
people rely on the equity in their homes. Ken Gordon, a senior vice
president at Merrill Lynch Canada, says including home equity in a
retirement plan is a mistake, especially for baby boomers who choose to
have their children later in life because their kids will still be home
when they retire. Another myth many baby boomers embrace is that their
parents will leave them a sizable inheritance. Gordon notes that the
average life expectancy rate is rising, which means that retired persons
are spending more of their retirement nest egg on travel and recreation.
The baby boom generation is also advised not to wait until the last
minute to start saving for retirement.