February 28, 2008

Boomer Sandwiches:
A Recipe for Financial Distress

These are to suppose to be the best years if you are a Baby boomer heading into retirement. Having the security of money in the bank, this second chance to enjoy life's youthful pleasures is slowly slipping away for many people. The reality is the parents of boomers are living in their basements and their adult children have boomeranged home once again. They are "sandwiched" in family responsibilities and financial rescue.

One-third of baby boomers are
helping their parents financially.

Nine out of 10 boomers have
helped their children financially.

Women are the primary demographic of this "sandwich" trend as they are often caught caring for elderly parents and adult children simultaneously. Studies show that women don't invest as aggressively as men for retirement savings and may have less flexibility to be financially generous. Conversations about money across generations are also not happening as often as they need to according to one recent study Money Across Generations done by US company Ameriprise Financial. Only four in 10 (39 percent) boomers say they talk with their families about money and finances on a regular basis, and even fewer parents of boomers say the same (26 percent). Boomers' kids are most apt to engage in these discussions.

Having a family conversation with the simple question "Is everything in order?" is the best starting point for all family members involved. This dialogue can open the door for parents to develop financial strategies that help them age with dignity and security. Along with providing relative information of making sure elderly parents have enough income and things like the locations of safety deposit boxes and investment accounts known. Further, family discussions about money contribute to more financially responsible and independent children. Of course, all these dialogues help baby boomers proactively plan for their own retirement dreams.

Talking to family about shared and individual financial goals can help everyone plan for the future with confidence.

Get a Copy of Money Across Generations Here

Continuing Education through IPBC

Certified Professional Bookkeepers are required to maintain 60 hours of continuing education credits in order to maintain professional standing.

To be acquired during a three year period from the anniversary of their certification CPBs can rest assured that IPBC has in place a variety of educational partners to support its CPB Member needs.

IPBC Members receive substantial discounts on posted educational resources through some of the industries top instructors.

Learn More About CPB Continuing Education

8 Ways to Boost Client Cash Flow - part 2.

Cash flow crunches are often the down fall for most success in business. Help your clients gain a better grip on their money with these suggestions; continued from last week's tips.

Reduce inventory

Ask suppliers whether items can be bought on consignment, which will allow inventory that doesn't sell to be returned. Having a sale to liquidate slow- moving merchandise is also another cash boost. Explore every avenue for reducing inventory levels and costs.

Shorten receivables

Change payment terms from 60 days after invoice to 30 days. Provide a small discount to clients who pay early and charge interest on late payments.

Collect what is owed

Monitor receivables on a weekly basis. Approach clients the day after their payment is due. Employ someone to chase late payments, or hire a collection agency.

Stretch payables

Unless there's a significant benefit to paying a bill as soon as it comes in, such as a worthwhile discount or the trust of a skittish supplier, hold onto cash until the bill is due - it might be needed for an emergency or other essentials.

Tip of the Week

Testimonials

People seem to have a need to know what others think before they place an order for a product or service. They tend to ask everyone they know, both offline and in forums. They will often even research the net for reviews and testimonials, but readers aren't swayed by template style testimonials that seem like fake sales talk. Effective testimonials are credible. One way to achieve this credibility is by having contact information in the footer of every testimony, such as by linking back to their website. Using testimonials effectively can and will help your visitors reach a decision. If you take the time to provide legitimate information in a credible manner, you will not be disappointed with the results.