As the United States braces for a demographic milestone known as Peak 65, the implications of an aging population, particularly the baby boomers, are coming into sharp focus. This phenomenon is much more than a number; it’s a harbinger of significant changes across the economy, healthcare, Social Security, and the stock market. With more than 10,000 Americans hitting retirement age every day through 2027, the impact on the economy is growing rapidly and, in turn, the retirement age debate is heating up in Washington and across the globe. This unprecedented surge in retirees, playfully coined the gray headed revolution, is reshaping our understanding of work, retirement, and financial stability.
Retirement Redefined
The concept of retirement is undergoing a transformation, moving away from the conventional age marker of 65. This evolution is partly driven by the adjustment of the Social Security full retirement age to 67 for those born in 1960 or later, a change that mirrors broader societal trends including increased longevity, better health in later life, and financial needs that extend well beyond traditional retirement ages. The debate over retirement ages, exemplified by the discussion around increasing the mandatory retirement age for pilots, highlights the growing recognition that retirement decisions must be more flexible to accommodate individual circumstances, career desires, and economic realities. This flexibility is crucial as it affects broader economic factors, including the viability of Social Security, which faces solvency challenges in the near future. It also demands more dynamic retirement planning strategies that account for a longer, more active retirement that may not be as supported by government aid as previous generations.
Economic Implications of a Graying Population
The aging of the baby boomer generation presents a unique set of challenges and opportunities for the U.S. economy. As a significant portion of the population transitions into retirement, with approximately 11,200 Americans turning 65 every day from 2024 to 2027, there is a profound impact on healthcare demand, pension system strain, and the overall structure of the workforce. These demographic shifts raise critical questions about the sufficiency of personal savings and the future of Social Security, which is projected to run out of money by 2034. The changing retirement landscape necessitates a rethinking of traditional retirement planning models, pushing individuals and policymakers alike to explore diversified investment strategies and income sources to ensure financial stability in retirement, which now may span two decades or more for many Americans.
The Stock Market and Boomer Retirement
The retirement of the baby boomer generation en masse has sparked considerable debate regarding its potential impact on the stock market. Concerns have been raised about the possibility of a downturn resulting from large-scale withdrawals from retirement accounts. However, a closer examination suggests a more nuanced outcome. Baby boomers, known for their financial prudence, have adopted diverse retirement strategies that include extending their working years and adopting careful investment planning. This diversified approach is expected to ease any sudden market fluctuations. Furthermore, boomers’ retirement savings are not likely to be withdrawn in a uniform manner, and their continued investment in the market, albeit in a more conservative fashion, could help stabilize demand for stocks. That said, retirees don’t always have the luxury of waiting for their portfolio to recover, leading them to become more risk averse. This is understandable, but it could lead to a steady flow of money out of stocks or other volatile assets and into safer investments such as fixed income.
Financial Strategies for a New Era
In response to the evolving retirement landscape, financial advisors generally underscore the importance of flexible and adaptable investment strategies. The key to navigating this new era involves diversifying income sources beyond traditional retirement savings accounts, exploring new models for retirement security, and staying acutely aware of changes in tax legislation that could affect retirement planning. With the shift in retirement strategies, individuals are encouraged to consider a broader array of investment options and planning techniques to safeguard their financial future. This includes leveraging strategies that account for longer life expectancies, potential health care needs, and the desire to leave a legacy for future generations, ensuring a secure and fulfilling retirement.
Steps for Navigating the Gray Headed Revolution
The shifting demographics and retirement norms present challenges, but there are still steps you can take to plan for a financially secure future:
- Embrace Lifelong Learning: Stay informed about financial trends and products that can help you prepare for retirement or financial independence.
- Diversify Your Portfolio: Expand investments beyond traditional options to include real estate or other alternative asset classes, creating multiple, uncorrelated income streams.
- Plan for Healthcare: Contribute to an HSA and explore long-term care insurance options.
- Maximize Tax Advantages: Utilize retirement account contributions and plan for tax-efficient withdrawals.
- Incorporate Estate Planning: Update wills, trusts, and engage in charitable giving to limit your tax liabilities and align your legacy with your values.
- Prepare for Non-Financial Activities: Plan your future lifestyle and how to stay engaged in fulfilling activities post-retirement.
- Seek Professional Guidance: Consult Ballentine Capital Advisors as well as legal and tax professionals for personalized advice and strategies.
The Next Generation
The gray headed revolution may specifically refer to the baby boomers, but it’s a wake-up call for all generations to rethink retirement planning. It underscores the need for policy adjustments, innovative financial products, and a broader understanding of what it means to age in America. As we move forward, the focus must be on creating a sustainable and flexible framework that supports the diverse needs and aspirations of a rapidly aging population. The demographic shift heralded by the retiring baby boomer generation poses complex challenges for the U.S. economy and stock market. However, by redefining retirement, embracing new financial strategies, and advocating for policy reforms, we can navigate this gray headed revolution with some optimism.
Read “Wealth on Purpose” by Bryan Ballentine for more strategies for boomers and retirement. If you have any questions, give us a call.
Have a great weekend!
Sources: Located at the bottom of the article
Golf Tip of the Week
Learn How To Correct Your Posture In Only 60 Seconds
At the start of 2023, we introduced the Golf Digest Fitness Trainer Certification. It’s a one-of-a-kind online curriculum that offers a new way to look at golf fitness and how to train average players.
Among the modules in this certification is an in-depth lecture on posture from well known expert Brian Bradley of the Egoscue Method. Among many of the topics Bradley covers is how things such as activities of daily life impact your ability to swing a golf club correctly.
“The big thing for golfers to remember, especially older ones who might have had previous injuries or spend their whole day looking down at a phone, is that your body will start to adapt to those things,” Bradley says.
“For example, you might have had a knee injury, or a hernia operation or tore your labrum, and now your body doesn’t like to shift into your left side. That’s when adaptations and compensations happen. Your body will find a way to make a golf swing despite that limitation, and hence your performance suffers.”
For many golfers, dysfunction in the hips can lead to an upper-body dominant swing, and that’s typically a recipe for slicing and poor ball-striking. Instead of letting lower-body weight shift and hip rotation power the club into the ball, the golfer with postural issues will simply try to muscle the ball with the arm and shoulder muscles.
If you’re wondering how healthy your posture is, try this quick self-test, Bradley says. Stand in socks or barefoot with your heels against a flat wall (no molding). Now close your eyes and start to sense where your whole body is in relation to the wall. Are your glutes touching? What about your shoulders? Is there bilateral balance? What about your head? Is it touching? Do you feel weight evenly between the feet?
If any of this feels off, your skeletal alignment could probably use a tuneup. Watch Brian demonstrate a simple alignment correction that you can do to help improve your posture and your ability to make a functional golf swing. Even doing it just for a minimum of 60 seconds a day can improve things considerably.
Tip adapted from golfdigest.comi
Recipe of the Week
Easter Chick Cupcakes
18 Servings
Ingredients
Cupcakes
- 1 1/2 c. (300 g.) granulated sugar
- 1 c. (2 sticks) unsalted butter, softened
- 3 large eggs
- 2 tsp. pure vanilla extract
- 2 c. (240 g.) all-purpose flour
- 3 tbsp. cornstarch
- 1 1/2 tsp. baking powder
- 1 tsp. kosher salt
- 3/4 c. whole milk
Buttercream & Assembly
- 3 c. (340 g.) powdered sugar
- 3/4 c. (1 1/2 sticks) unsalted butter, softened
- 1 tbsp. heavy cream
- 1 tsp. pure vanilla extract
- 1/4 c. yellow sanding sugar
- 36 chocolate chips
- Orange food coloring, for decorating
Instructions
Cupcakes
- Preheat oven to 350° and line 2 standard 12-cup muffin tins with liners. In a large bowl, using a handheld mixer (or in the large bowl of a stand mixer fitted with the whisk attachment) on medium-high speed, beat granulated sugar and butter until light and fluffy. Add eggs, one at a time, beating well after each addition. Add vanilla and mix until combined.
- In a medium bowl, whisk flour, cornstarch, baking powder, and salt. Add half of dry ingredients to butter mixture and beat until just combined. Add milk and beat until incorporated. Add remaining dry ingredients and stir with a wooden spoon until just combined.
- Fill 18 liners three-quarters full with batter. Bake cupcakes until slightly golden on top and a tester inserted into the center comes out clean, about 25 minutes. Remove cupcakes from pan and let cool completely.
Buttercream & Assembly
- In a large bowl, using handheld mixer on medium-high speed, beat powdered sugar and butter until smooth. Add cream and vanilla and beat until incorporated.
- Pour sanding sugar into a shallow dish. Frost tops of cooled cupcakes with buttercream and smooth to a flat top. Dip into sanding sugar to coat top.
- Place 2 chocolate chips into cupcakes, flat side up, to create eyes.
- Transfer a little buttercream to a piping bag fitted with a small round tip. Pipe a small white dot onto each chocolate chip.
- Add about half of remaining buttercream to another piping bag fitted with a small leaf tip. Pipe a zigzag line on each side of cupcakes to create wings. Sprinkle with more sanding sugar.
- Add orange food coloring to remaining buttercream and stir until desired color is reached. Transfer to another piping bag fitted with a small round tip. Pipe a small upside-down triangle under chocolate chips to create a beak. Pipe short lines to create feet at bottom of cupcake.
Recipe adapted from Delish.comii
Travel Tip of the Week
8 Charming Small Towns In South Carolina — From The Mountains To The Beach
When you think of South Carolina, you likely picture pastel-colored homes in Charleston or the Grand Strand’s golden sandy beaches. But what if we told you there’s more to the state beyond its big cities?
I spent the first 22 years of my life in the Palmetto State, and while I love revisiting Charleston, Greenville, and Columbia, South Carolina’s small towns and secluded islands are well worth a stop, whether on a day trip or as your main destination. And don’t worry — you’ll find sweet tea, Southern hospitality, and a wide range of stunning landscapes all over the state. After all, our old license tags used to read: “Smiling faces, beautiful places.”
We rounded up small towns in South Carolina with around 15,000 residents or less, excluding some slightly larger favorites like Hilton Head Island and Bluffton (which are worth visiting, too). So, whether you’re looking for a mountain getaway or a beach vacation destination without the crowds, here are eight of the best small towns in South Carolina.
Sullivan’s Island
A short drive from downtown Charleston, Sullivan’s Island is one of the best beach towns in South Carolina. The 2.5-mile-long island is known for historic Fort Moultrie (with ties to the American Revolution and Civil War), a charming main drag, and pristine beaches unsullied by high-rise hotels or tourist traps. The appropriately named Middle Street — located in the center of the small island — is home to popular restaurants like Poe’s Tavern (an Edgar Allen Poe-themed eatery with incredible burgers), Home Team BBQ, and The Obstinate Daughter.
Travelers Rest
The Upstate South Carolina region is dotted with lakes and rolling green hills in the shadow of the nearby Blue Ridge Mountains. Travelers Rest (or simply “TR”) offers a dose of small-town living and outdoor adventure within 10 miles of the charming city of Greenville. Before you go hiking, kayaking, or mountain biking, fuel up at Tandem Creperie and Coffeehouse, and end your day with a pint at Swamp Rabbit Brewery. Less than 20 minutes outside of town, Hotel Domestique offers a taste of the Tuscan countryside in South Carolina with beautiful grounds and accommodations overlooking the rolling hills and mountains.
Georgetown
South Carolina has plenty of lovely coastal small towns, including Georgetown, located between Charleston and Myrtle Beach. It’s the third-oldest town in the state, so there’s plenty of history to explore, plus local shops and restaurants on Front Street. Go for a stroll along the Harborwalk to admire views of the sparkling water, grab lunch on the patio of Georgetown Corner Tavern, and try the pralines at Sweeties Homemade Ice Cream and Sweets.
Edisto Beach
The small town of Edisto Beach on Edisto Island is great for a laid-back coastal vacation. One of South Carolina’s Sea Islands, Edisto is situated between Hilton Head and Charleston, and has beautiful beaches, including picturesque Driftwood Beach. Visit the Edisto Island Museum to learn about the history and culture of the island’s Gullah Geechee people, descendants of enslaved Africans who remained on the southeastern coast of the United States. You won’t find many large hotels in the area, so opt for a rental and enjoy the serene atmosphere and seafood restaurants.
Kiawah Island
Another barrier island on the South Carolina coast, Kiawah offers seafront serenity with an upscale twist. The primarily privately owned island is home to Kiawah Island Golf Resort, known for its championship golf courses, and The Sanctuary, a beachfront luxury hotel. Nearby Freshfields Village offers shopping (with lots of resort wear to choose from) and a range of restaurants.
Newberry
Located in the state’s Midlands region, between Greenville and South Carolina’s capital city, Columbia, Newberry has a quintessential small-town feel. The well-preserved downtown area features an opera house, antique shops, locally owned restaurants, and more. Plus, it hosts festivals throughout the year, including the annual Oktoberfest, Christmas in Newberry, and Pork in the Park events.
Beaufort
Down in the Lowcountry on Port Royal Island, Beaufort is another historic coastal town. It dates back to 1711, making it South Carolina’s second-oldest city after Charleston. You can experience history firsthand by learning about Gullah culture at historic sites or on a tour, visiting ruins and old homes, and more.
Daufuskie Island
Daufuskie Island, tucked between Savannah and Hilton Head on the coast, is the ultimate escape when you really want to get away from it all. Only accessible by boat, the island retains its small-town atmosphere. You’ll find a handful of cafes and restaurants, local artisans’ shops, and the Daufuskie Island Distillery, which offers a range of tasty spirits such as a delightful Kona coffee rum. Keep an eye out for local wildlife, including dolphins and turtles, along the sandy shoreline.
Tip adapted from travelandleisure.comiii
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Ballentine Capital Advisors
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Greenville, SC 29607
Sources:
As baby boomers hit ‘peak 65’ this year, what the retirement age should be is up for debate
Baby Boomers Are Hitting Peak 65. What It Means For Retirement Planning.
Will the Stock Market Dip Once Boomers Take Out Retirement? Here’s What Experts Say
Disclosure:
Ballentine Capital Advisors is a registered investment adviser. The advisory services of Ballentine Capital Advisors are not made available in any jurisdiction in which Ballentine Capital Advisors is not registered or is otherwise exempt from registration.
Please review Ballentine Capital Advisors Disclosure Brochure for a complete explanation of fees. Investing involves risks. Investments are not guaranteed and may lose value.
This material is prepared by Ballentine Capital Advisors for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation or any particular security, strategy, or investment product.
No representation is being made that any account will or is likely to achieve future profits or losses similar to those shown. You should not assume that investment decisions we make in the future will be profitable or equal the investment performance of the past. Past performance does not indicate future results.
Advisory services through Ballentine Capital Advisors, Inc.
i https://www.golfdigest.com/story/learn-how-to-correct-your-posture-in-only-60-seconds-
ii https://www.delish.com/cooking/recipe-ideas/a42592368/easter-chick-cupcakes-recipe/
iii https://www.travelandleisure.com/trip-ideas/small-towns-in-south-carolina
