Home Prices are Rising Again: The Millennial Disconnect

April 14, 2015

According to S&P/Case Shiller, home prices are rising again. (Wall Street Journal) The housing cost in the top 20 markets around the country are moving upwards of 4% from last year. What does this mean for baby boomers?

Home Prices are Rising for Millennials: How this is a negative for boomers?

Most millennials prefer to rent over buy. (Forbes) They also say saving for retirement is a challenge because they don’t make enough money to save.

The millennial’s plight causes an economic disconnect for baby boomers. One way to help supplement retirement for the 55 and older generation is to sell their homes. Baby boomers are scheduled to retire within the next 10-20 years. If the rising generation is skeptical of owning a mortgage, then who will buy from the soon-to-be retirees?

Baby Boomers, Home-selling and Retirement

Because baby boomers did not save enough for retirement, they consider their home to be one of their greatest assets. (Forbes) Boomers want to downsize their once needed single-family home, but currently, Gen Xers don’t want the same type of suburban pseudo mansions, and millennials have an adverse attitude about owning anything substantial.

This leaves those heading into their non-working years with more houses than there are buyers. Now what?

There is Still Time to Change Directions

Many baby boomers come to Paradigm Life with three major retirement fears:

Running Out of Money
Keeping up with Healthcare Costs
Maintaining an Independent Lifestyle

All three of these fears accompany a common underlying emotion – anxiety. Many who are quickly approaching retirement feel like their options are limited. Typically, a second income stream is considered or they are faced with having to work longer.

We educate individuals about how their money, even a small retirement savings, can be refocused into a whole life policy that can eliminate retirement fears and provide an income during the non-working years.

Income for Life

A properly structured Whole Life Policy can give those in retirement or near retirement an asset that provides liquidity, market security, a steady rate of return, and a death benefit.

Life Insurance was once the primary savings vehicles for Americans, and companies provided retirement pensions via Whole Life Policies.

Since Americans have been forced to take control of their retirement, and relinquish their savings to the “company matched” 401(k)s, retirement accounts have dwindled, not grown.

Whole Life Insurance, unlike the 401(K), is not connected to the stock market, so a retiree can always guarantee an income. Also, the cash value from a policy can be distributed at any time and in any amount – even to invest in other performing assets. (Why Use Insurance for Retirement?)

Your Retirement Home

Whether you want to stay in the home in which your kids were raised, or are looking to downsize, you can maintain or finance with your Whole Life Policy.

Whole Life Insurance provides flexibility and safety to accommodate the volatile economic changes that are beyond your control – like the rising generation’s attitudes toward home buying.