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Wednesday, July 19, 2006

The sandwich generation - our baby boomers

Hello there!  I'm Matt Chadwick at the business desk and this morning I'd like to focus on our baby boomers also known as the sandwich generation.
Experts call them the sandwich generation because they seem to fall smack dab in the middle of a generation made up of our seniors at the upper end and our youngsters at the lower end.  For those of you wondering who our baby boomers are?  They are the very powerful group of consumers who were born between 1945 and 1960.  That is right after World War ii (1945) and somewhat at the beginning of and may be a bit into the era of the Beatles.  This generation is poised to be one of the most powerful that we may see for a very long time.  They are financially influential, financially successful, and by 2010 it is estimated that they will probably make up about 60% of our population and own about 70% of our banking assets in North America.  However, this generation is not without its challenges for as we speak a recent survey published in America shows that three in every five of our baby boomers is supporting elderly parents and about 25% of them are also supporting grown kids who are still living at home.
Many experts are saying that this generation, despite its financial affluence, is going to need help from financial planners and advisers to help them deal with a crunch whereby they are being placed in a very precarious position of having to support both parents and kids at the same time.  For this reason we are probably going to see our baby boomers being forced to make certain types of buying choices such as the purchasing of larger and more expensive homes.  Homes that will be large enough to accommodate elderly parents, baby boomers, and adult kids and in accordance with this the mortgages are going to be larger, the down payments less, and the principle steeper.  However, the mortgages are going to be shared among generations.  That is, the parents are probably going to pass down mortgages to their kids.  There was a time in the past where parents were able to pay off their mortgages before they reached their senior years but no more.  With our baby boomers taking on more financial responsibility it is only logical and natural that they will have no choice but to pass on the mortgages and other financial responsibilities to their kids. 
What does all this mean?  It means that we are going to see a new trend in spending, buying, and selling when it comes to purchases and sales such as houses and other big ticket items and with this will come the demand for more skilled financial planners and advisers.
If you're interested in pursuing such types of careers or related careers then this may be the time for you to jump in and with this in mind you may want to purchase a copy of "Untapped Wealth Discovered" written by Jeff Marquis and Kerry Harrison.  This book is filled with strategies and ideas to spark your creative juices and it is well priced.  Visit www.untappedwealth.com/order.htm to purchase a copy.

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