Welcome to the maiden Issue of BOOMER-ING, an online magazine (e-zine) targeted to Baby Boomers born during the period 1946-64. Never before has the older population in America taken on the importance it has now and will have over the next 20 years as 77 million Boomers move into “Senior” status. This newsletter will report on and advise you about our progress.

According to a CBS News Report by Anthony Mason on November 29, Boomers represent less than one-third of the population of America, but control 75% of personal wealth, account for 80% of luxury travel, and buy over 40% of the new cars. For the first time in America the over-50 population is the focus of major advertising efforts. It’s not glamorous to cater to us, but it makes good business sense. As an example, The Early Show had a segment recently on how older women can still dress trendy without looking ridiculous. We are still the premiere, in control, most sought-after generation to pass through American history, and we don’t seem to want to give up.

According to an AARP Analysis: “Baby Boomers Envision Their Retirement,” eight in 10 Boomers say they plan to work at least part-time after retiring from their primary jobs--and others plan to start their own business or work full-time at a new job or career. But because Boomers are healthier and expect to live longer than their parents, a study by Allstate Financial of Northbrook, IL shows that 82% believe retirement will be more fun and rewarding than their parents’ retirement. It’s my observation that most Boomers don’t mind working after retirement as long as it’s something they enjoy. The primary career becomes the springboard to the desired career. That’s why I always refer to my retirement from the Federal Government at age 54 as “graduation.”

In this and future issues, we’ll discuss the financial, physical and emotional changes and adjustments we can expect to experience as we move toward retirement and “seniorhood.” And hopefully we’ll all learn to just relax a little and let the younger generations take over. Oooh my, can we do it?

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A QUICK WORD FROM OUR SPONSOR: Alexie Books, A Division of Alexie Enterprises, Inc. It’s not too late to order Tagger, Alone Along the Mystic River for Christmas. With it’s free song CD, it makes a wonderful gift for kids and adults. Shipping is free for the rest of 2002. Click here or copy and paste to browser: http://www.alexiebooks.com.

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IN THIS ISSUE:

1. Invest in Equities? At my age?

2. Home Sweet Home

3. From the Other Side

4. Boomer Humor

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INVEST IN EQUITIES? AT MY AGE?

One of the biggest risks facing retirees, especially those who retire "early," prior to age 65, is the negative impact of inflation on monthly income. A man in good health at 65 can expect to live 20 more years more on average, a woman nearly 25 years. For more than 200 years, the USA has averaged a monetary inflation factor of 3% per year and almost 4% for the last thirty years! Yet people continue to blithely retire on a fixed income, assuming their $2000 or $3000 per month will be enough to maintain their standard of living for the rest of their lives.

Unless one's pension income is "indexed," meaning it will go up every year to make up for inflation, it’s dangerous to rely completely on a fixed income portfolio. In order for retirees to protect themselves against this almost certain risk of their fixed income, most must make investments which will grow rather than shrink. In the United States the three most popular ways to do this are:

1. Business ownership,

2. Real estate investment, and

3. Investment in the stock market.

Business Ownership. Retirees, by definition, do not run a business, but many pursue this avenue when they retire. As a general rule though, small, privately owned businesses are difficult to sell and do not sell at high multiples of their earnings, since all or most of the earnings are, in fact, payment for labor, not profits.

Real Estate Investments. Owning one's own home is an investment of sorts, especially if the home is completely paid for, as is often the case at retirement. The return on investment in the home is, of course, free rent and appreciation of the real estate over time, keeping pace with inflation. This can also provide a source of funds toward the real possibility of nursing home care late in life.

Many retirees are entrepreneurs and invest in rental real estate, either residential or commercial, and personally perform a great deal of the labor associated with property maintenance. While this is often a good source of retirement income, as one gets older, the required labor becomes more and more onerous, and the cost of hiring others inevitably rises. Nevertheless, for those wishing to provide "hands-on" management and maintenance, rental real estate can be an excellent investment vehicle for avoiding inflation. Indeed, with the inflation of property values and low mortgage rates, real estate investment can often prove quite lucrative.

Investment in the Stock Market. The third and most popular way of offsetting inflation is investing in the stock market. After the Great Depression of the 1930s, most people believed that investing in the stock market was foolish and highly speculative, but history has proven this wrong. In the last couple of years though, the stock market has been a risky place to put one's money and the popular opinion has turned against making investments in stocks. Instead we are hearing advice that "real estate, especially residences" is the place to put your investments; this despite the fact that the price of homes in many locales has skyrocketed recently. Does this sound something like what we heard about investing in tech stocks a few years ago?

Investing is always risky, but following the crowd is especially so. When prices are at all time highs, investors rush to buy stocks, even at historically ridiculous prices. When stocks retreat from these all-time highs to more reasonable prices, people sell in a panic. Those suggesting purchases at such times, like this past summer of 2002, are considered off-balanced speculators or worse. Yet, these are the times that true professional investors, like Warren Buffet and John Templeton, wait for. They welcome lower prices as an opportunity to buy bargains, just as the average shopper waits for lower prices at the grocery store before loading up their kitchen cabinets.

In my 40 years of active investment advising, I've only seen bargains such at these once before, in 1975. The stock market has rallied more than 20% this fall, in spite of the real likelihood of war, economic uncertainties, low employment, and many other legitimate worries. In fact, the market has climbed a "wall of worry" since September, showing very unusual strength. Historically such strength is a precursor of good gains in the intermediate to long-term future, i.e., one to five years.

For those who have available funds and a reasonably long-term outlook, coming weeks and months should be an excellent time to make investments in quality stocks selling at reasonable prices, especially those paying better than average dividends. Tom McAllister, CFP, McAllister Financial Planning, 800-663-3410, mcafinl@aol.com, Fax 317-581-1261.

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HOME SWEET HOME

Life-span psychologists who study our human behavior from birth to death write about the many changes we go through including our interests and our needs. Housing, or what we know as our "Home Sweet Home," is greatly influenced by our needs and interests as we pass through these various phases from our first, usually small humble abode to the expanding family, empty nester, pre-retiree and finally the retirement house.

REALTORS, have the pleasure of assisting buyers and sellers by providing professional services to assist people during these natural transitions. First, they help clients identify their current needs and desires for property and then help them find their perfect place to call home.

In upcoming articles, we will take a closer look at the needs of the now savvy and mature Baby Boomers and their quest for "Home Sweet Home." In the next edition we will visit "The Big House."

Dennis G. Blanton, Retired School Superintendent, Former Mayor on the Grand Strand, and #1 Coldwell Banker Chicora Real Estate Agent in Myrtle Beach, SC, 1- 888-449-4404, DBlantonRealtor@aol.com.

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FROM THE OTHER SIDE. "EXPERIENCED" RETIREES PROVIDE ADVICE.

Lessons Learned When Retirement is Upon You-—Loss of Status.

Retiring is like having children. There’s little training for it. One aspect of retirement that few people prepare for is the loss of status. No matter whom you are or what your professional status is, you have accomplished achievements and are recognized as having status during your years of work. Everyone who works controls something. Many direct people. Everyone controls work processes or procedures or influences them in many ways. People are recognized for that special thing they do. And....they enjoy it. They tell their families and friends about it. It is a daily item of discussion. Some enjoy it more than others depending upon their job, their nature and their character In reality, retirement takes away that familiar and cherished “status,” no mater what its nature.

When the retirement bridge is crossed, the professional status that was a part of one’s life is left behind. The retiree suddenly has no special status at all. They no longer have those important decisions to make. They are no longer critical to the day to day operations of a business. There are no longer badges to wear, no assigned parking areas, no name on the daily routing slip. And to add insult to injury, sometimes retirees can’t even return to the workplace where they spent 30-40 years of their lives.

There are many ways to compensate for the loss of professional status. Some pursue careers they’ve always wanted to do, like writing a book or painting. Achieving the title of “author” or “artist” is sometimes an adequate substitute for the professional status that is lost with retirement. Some compensate by sports achievement. They finally make that par round on the golf course or they catch a ten-pound bass. Others volunteer their services to various organizations, and many retirees get part time jobs for the sole purpose of maintaining that feeling of importance and relevance. All of these activities are quite normal in the rite of passage into retirement.

Since loss in status after retirement is inevitable, it’s important that you consider its effect. Although we all deal with it differently, it must be dealt with in the same sort of way that a retiree deals with the new reduced income status that is normally associated with retirement. Don’t let your vanity get in the way of the adjustments in status that are so necessary for guaranteeing that retirement is the best part of your life!

George Schmutz, Retired Management Analyst Guru and current Corporation President.

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BOOMER HUMOR

This could be us in the future or NOW???????

God grant me the senility to forget the people I never liked anyway, the good fortune to run into the ones I do, and the eyesight to tell the difference. Now that I'm 'older' (but refuse to grow up), here's what I've discovered:

1. I started out with nothing, and I still have most of it.

2. My wild oats have turned into prunes and All Bran

3. I finally got my head together; now my body is falling apart.

4. Funny, I don't remember being absent minded.

4. Funny, I don't remember being absent minded.

5. It is easier to get older than it is to get wiser.

6. It's hard to make a comeback when you haven't been anywhere.

7. If God wanted me to touch my toes, he would have put them on my knees.

8. When I'm finally holding all the cards, why does everyone decide to play chess?

9. The only difference between a rut and a grave is the depth.

10. These days, I spend a lot of time thinking about the hereafter. I go somewhere to get something and then wonder what I'm here after.

11. Funny, I don't remember being, . . . absent minded...

Now I think you're supposed to send this to 5 or 6, maybe 10 people, oh send it to a bunch of your friends if you can remember who they are. Then something is supposed to happen, I think. Maybe you get your memory back.

Author Unknown, Submitted by Rich Jordan, New Images Software.