Baby Boomer Insights

How "Boomer Elites" invest, manage and spend money

A new study by Focalyst was released today and it contained some data that I think may surprise many marketers. According to the findings, the number of Elite Boomers, those with a pre-tax income of $150,000+ (or $100,000 for those who are retired), is actually smaller than previously assumed. Turns out only 1 in 10 Boomers falls into the elite category.

Elite Boomers tend to be married, college educated, and live in a home valued at twice as much as the average Boomer's residence. Obviously, these Boomers have great financial planners who help them manage their money, right? Well, actually, no. On the contrary, they seek out information they feel they can trust, then make their own decisions. They don't like feeling that someone, even a brilliant financial planner, has some control and is telling them what to do.

Playing into this too, of course, is the fact that because they're well educated and financially successful, they aren't overly intimidated when considering financial options, so they believe they can  make their own best decisions.

What I found of particular interest is this: if you want to reach the Elite Boomer group, you need to understand that they're also huge consumers of traditional media. 91% watch TV, 87% read a newspaper or magazine, 76% listen to the radio and 75% use the Internet.

Focalyst reports these Boomers spend 30 minutes a day reading a newspaper or magazine and 40% say they read the ads in magazines they subscribe to. (That last number really surprised me, probably because I rarely read a magazine ad. In fact, when I get a magazine, I tear out all the inserts and many of the ads before I ever start reading.)

Why does all this matter? Because, despite the fact that Boomer use of the Internet is consistently rising, you also need to be seen in the media they are consuming if you want to grab their mind share and wallet share. Read the study to find out where they plan to spend bucks in the next 12 months and you'll get a good idea of what kind of media plan is needed to reach them.

The bottom line is this... like so many things in life, we can really go astray when we make assumptions about people based on random information like age and income!

The joy of growing up in a multi-generational household

I was an adult before I  realized how truly blessed I was to grow up in a multi-generational household. My father is an only child and his mother moved in with him and my mom just a few years into their marriage.

For the next 35+ years, she was there day in and day out, cooking, cleaning and sewing... always sewing. (She had been a professional seamstress for J.C. Penney. She made her own patterns out of newspapers and didn't even consider it a challenge to make two complete outfits in a day.)

Grandma Jeanne (an apt name... she was an absolute genie in the kitchen and with "Old Bessie," her treadle sewing machine) was as close as my hard-working career mom ever got to having a wife. Not once were any of the five children in my family ever left in the hands of a babysitter. Thank goodness. I can't imagine anyone else being able to impart as much wisdom or command a child to behave simply by arching a single eyebrow like Grandma did.

Grandma didn't come live with us because she couldn't care for herself; rather, she wanted to help her son raise his family and she wanted to continue growing enough vegetables to feed all her relatives and still give most of it away. She could do both on daddy's farm. So, that's how it came to be that I got used to coming home every day from school to find a soft, fat,  gentle woman with a tight little bun on her head, snapping beans or cutting hand-rolled dough into dumplings.

My genie died about 20 years ago at the age of 80. I still miss her terribly. And try as I might, I can't recall a single instance when either of my parents seemed the least bit  annoyed or concerned about her constant presence.

Multi-generational households are starting to make a comeback, though more out of necessity than anything. We boomers now have parents who need care and we want to do it ourselves. According to today's USA Today, 41% of boomers who have a living parent are helping to care for them, either financially or by providing personal care. Some 8% of boomers have parents living with them. Of those who are not currently caring for their parents, 37% expect to do so in the future.

It is becoming a huge issue. Caregiving is physically, financially and mentally taxing. Now we are seeing boomers start to lose their own health and dip into their own savings to assist their parents. Fortunately, according to the USAT research, 89% of boomers consider it no sacrifice or a small sacrifice. 

Where does this leave boomers? For one thing, we are starting to think about our own desire and ability to "age in place." We're  demanding changes in the way our future homes are designed. We aren't all planning to move to Florida and Arizona when we retire, opting instead to stay closer to our children. We're taking better care of ourselves. We're investing in technology that can help keep our brains and bodies in better shape.

These are all good things, as far as I'm concerned. The question is, will we act fast enough to enable us to realize the benefits of our new-found wisdom and efforts? I sure hope so because we've spent the past 20 years raising narcissitic children who may not "get" the joy of of multi-generational household!

Music in the garage too loud? Tell Dad to turn it down! Boomer bands rock!

The kids are off to college. It's time to enjoy quiet, relaxed evenings at home, right? Not for a lot of boomers, who think it's time to dust off the electric guitar and crank up the amps. Have you noticed the new trend of boomer bands?

It makes sense, really. Boomers love music, we buy a lot of it (more than our children, in fact) and we grew up with some of the greatest music in history. Now we have the money to buy the equipment we want and we have the confidence to do what we enjoy without worrying whether our friends think we're dorks.

What's more, Boomer band members see opportunities to use their talent to raise money for favorite causes and entertain friends at reunions, neighborhood parties and such. We're even seeing team mates in companies bond over a mutual love for rocking out in the garage. Beats the heck out of that "let's walk on hot coals" thing, if you ask me.

Today's New York Times carries a terrific story about this new trend. What fun to see the tables turn and the parents be the ones who play music a little too loud!

I have friends in Boomer bands - check out www.danceoutloud.net for a great example - so I get to see firsthand how they learn to mix having fun with using their skills as parents, business professionals and experienced adults.

My friend, Michael Nelson, for example, is an extraordinarily gifted professional photographer  in Atlanta who is married to Andrea, a very talented visual communications expert. By day Michael shoots photos for national ad campaigns and corporations and by night he plays the drums. Meanwhile, Andrea creates amazing presentations for CEOS and by night helps to manage the band. Their business skills have enabled them to promote the band and get great gigs, giving them the control they want while having a blast. And, hey, don't they say "the family that plays together stays together?"

Look for this boomer band trend to continue and by all means encourage it! The Rolling Stones have to quit eventually!

The hair blowing in the wind on that jet ski is likely to be silver!

"Where are all the cute boys on jet skis? All I see are a bunch of old people."

So lamented my soon-to-be 18-year-old college freshman daughter recently when I took her and her best friend out boating one afternoon. They wanted to find college guys they could wave to and even flirt with. But time and again as we approached a jet ski, they were dissappointed. There were as many, or more, riders with silver hair than blonde.

Obviously, these girls equated jet skis with youth and didn't get why a grandfather-type would want or need one. That's because they haven't figured out yet that we boomers are prime targets for high-priced toys like jet skis. After all, we have the discretionary income, we're into fitness as a whole, and we see ourselves as younger than we we actually are.

Jet skis are the perfect metaphor for a boomer. They remind us of our reckless youth and yet provide us with a way to entertain grandchildren. (Did you know that 80% of boomers stay in close touch with their grandkids?) These motorcycles on water let us have fun, keep connected to the younger generation, and enjoy the benefits of all that exercise we're getting in our fitness rooms at home.

Expect to see more boomers (and older!) hopping aboard jet skis to celebrate the trend in embracing sports and fitness items that motivate us. Already, boomers are incorporating fitness rooms into their homes more than ever before. In fact, in 2006, requests for fitness rooms went up 3% while hobby and game rooms decreased by 5%. 

You know what else went up? Multi-generational travel, especially for vacations (American Express travel agents recently reported that 70% of them are booking arrangements for grandparents traveling with their grandchildren.) In the top three were vacations that involved water.

As they say, do the math.

So if you're out on the water this summer, pay attention to those  jet skis zipping by and let me know if you're seeing this trend firsthand, too.

Meanwhile... sorry, Sydney... the hunt for cool boys on hot jet skis... or is that hot boys on cool jet skis?... won't get any easier!

Retired, but not tired: older citizens give back through volunteerism

In "the good old days," organizations could put out a call for volunteers and people who were so inclined would show up and do what was randomly assigned with little regard for whether it was particularly interesting or relevant to the volunteer. Not any more. Nonprofits are having to rethink how they recruit and retain volunteers, especially older retirees.

According to a report recently released by the Corporation for National and Community Service, the silver foxes are very active volunteers, but they also pick and choose where they invest their time and energy. In 2006, some 24.4 percent of Americans aged 65 and older volunteered their time and skills (by comparison, exactly a third of Americans 35-44 volunteered) in their communities.

But like most studies, you have to look beneath the surface. The percentage of older volunteers may be lower, but the amount of time they volunteered was actually double their younger counterparts. What's more, over the past 30 years, the 65+ age group is the only group whose numbers have increased on the volunteer front. They lead the pack when it comes to helping their neighbors.

Why the age uptick in volunteers? For one thing, our older population is generally healthier than past generations. They're also more skilled and have a desire to continue using their skills and experience long after they're done punching a time clock. It's one more way to stay vital. In fact, most are retired by choice, so they could pursue second (or third or fourth) careers; instead, they choose to give back.

Watch for this trend to continue with Boomers too. As we retire, expect us to look for opportunities to use our leadership skills and considerable business acumen to help our communities in countless ways.

But don't give us busy work. In Atlanta, Wisdom Works, an initative from the Council on Aging gets this. Already they are helping organizations find ways to better engage with Boomers and older volunteers. They hope to create a model that can be replicated across the country. They help match organizations with volunteers who want to donate specific skills and knowledge, i.e., a retiree who can develop a nonprofit's marketing plan or a Boomer who can show younger people how to make extensive home repairs. The point is they help identify a need, then match the person to the need. How great is that?

What has been your experience in volunteering? Do you think you'll volunteer more or less once you stop working full time?

Gone to college, away from Mom's watchful eye, right? Not so fast!

Friday was orientation day at Georgia College and State University, the college my youngest daughter, Sydney, has chosen to attend in the fall. It is a small (7,000 students) liberal arts school in middle Georgia.

One thing that struck me as particularly interesting, even humorous, about the day was that every single speaker talked about the increase in helicopter parents over the past few years. If you aren't familiar with the term, it is one that has been given primarily to Boomers whose children are now in college following 18 years of being managed up the wazoo.

Apparently, we have a tendency to "hover" over our kids to make sure their feelings, egos and bodies are never bruised. We rush to fix their problems, intervene when they're arguing with others and agree with them when they argue that  "it's not my fault."

GCSU has an interesting approach. First, from administrators to professors to current students, each implored the parents to "back off" and let the students be as independent as possible. To help satisfy our need to know what's going on, the school has started a new parent organization we can join. We will be given online access to a special place on the school's web site where we will be kept up-to-date on what's happening on the campus so that we can feel in the loop without intruding so much on our children's lives. I guess the administrators decided it was just unrealistic to expect us to just butt out because they asked us to.

We also got a booklet with suggestions on how to stay connected to our students without being over-involved. Who knows? Maybe we weren't listening while we were making a list of all the things we wanted to make sure our kids asked about during day.

I think GCSU may be fighting an uphill battle. After all, Boomers love being connected to friends and family. It's why 72% of us have Internet connections at home and 95% of us use the Internet specifically to stay in touch with family and friends. Did you know that 50% of the people on Facebook are not college students or that a third of Facebook users are between 35 and 54? What's more, Facebook is actively reaching out to Boomers because they can expand only so much among college students.

No doubt, a lot of students who think they're finally ditching their parents for a change may be in for a surprise. Next thing you know, they'll be getting invitations to be "friends" with their parents in cyberspace. I suspect the experience will mirror something like the one described in today's New York Times.

Boomers and cars: we love the iPod jacks too!

I had an experience last week at a Ford dealer that left me just rolling my eyes and shaking my head. It's hard to believe that in 2007 a salesman can be this lame.

Oh... wait a minute... I almost forgot... he told Ralph and me at least 10 times that he isn't a salesman. He's a "very talented engineer" (his exact words) who "understands this car better than anyone at the company." He was referring to a Ford mustang convertible my 51-year-old husband was there to buy for himself. He was certainly right about one thing... he's no salesman.

First, he asked if the car was for one our kids. (Apparently, he doesn't know that Boomers can't get out of their SUVs fast enough now that the kids have gone to college). We assured him it was for Ralph. He then started on the upsell. Surely we'd want the pony package for only another $1,500. (So, in other words, if the car was going to be driven by a Boomer, he must be having a mid-life crisis and would want to show he could afford the top-of-the-line version).

I largely ignored him, just taking an occasional opportunity to give him one of my "Mom" looks that I thought communicated, "You can stop talking now." He wasn't deterred. My husband and I exchanged several knowing glances then made fun of him all the way home.

He really crossed the line with his answer to my question, "It does have a jack for the iPod, right?" Honest to God, he said, "Oh yes! I'm sure your kids will love that!"

I couldn't hold it any longer. I said, smiling (because we Souterners know you can say anything as along as you smile or add "Bless your heart") "Actually, no. Ralph and I not only each have our own iPods, we probably have more than 1,000 songs loaded on each and that's before you count the podcasts we also download, which by the way, we also produce. So, no sir, we're not interested in what the kids think. We're interested in being able to take full advantage of the technology we already use. By the way, it may interest you to know that one reason I drive a Lexus is because it's bluetooth-enabled. I hardly think the technology in this thing will be too much for me to handle, OK?"

To his credit, he apologized, but I didn't let him off the hook easily. I think he now understands what you already know: Boomers are not techno-phobes. (But some of us can be a tad self-righteous!). In fact, our use of the Internet and podcasts in particular is growing at almost double the rate of the under-55 adult population. More of us see technology as a way to enhance our lives, not make it more confusing.

There's one more thing Mr. "Very talented engineer" doesn't understand: Boomers love to blog about bad service and he's awfully lucky I'm too much of a lady to call him by name.

Women are happiest after 50, according to new study

Women are happiest between the ages of 50 and 70,  according to Chicago-based TrendSight Group, a consulting think tank. The group conducted in-depth interviews with 50 women, then supplemented their findings with the results of a 30-year lifestyle study.

Marti Barletta, author of Prime Time Women, led the study and revealed that older women are more content with life because they feel more liberated. This results in happiness that comes from being more confident, more involved, and more socially active than their mothers were at the same age, or for that matter, even when compared to today's younger women.

The study showed that 65% of younger women believe they are under a great deal of pressure to feel or act a certain way, compared to only 42% of older women. Barletta contends that older women certainly know adversity may come, but we feel better prepared to deal with it than our younger counterparts; hence, the liberation. She calls this "liberation from expectation."

My favorite stat to come from the study was this: 59% of women 50-70 feel their greatest achievements are still ahead of them. I love the optimism. It also reminds me of something my friend, Leslie Charles, author of "Why Is Everyone So Cranky?" once told me. She said that as her body became less fertile, her mind grew more fertile. She wrote her first book after menopause and has written several bestsellers since. I consider her a role model.

Leslie has already experienced what Ms. Barletta's study asserts: women 50-70 actually feel more in control of their lives than at any other time.

How about you? Are you optimistic about aging?

Boomers once again defy conventional wisdom by downloading podcasts

If  you think podcasting is for only the young turks with ear buds, think again. According to a comScore study, sponsored by Ad Infuse, consumers 35-54 make up about half of the audience that embraces podcasts.

That doesn't surprise me much, perhaps because I fit into this demographic perfectly. I'm 50 and download podcasts weekly. I plug my iPod into the sound system in my car and use my commute time to listen to commercal-free music, lectures, interviews and educational programs.

comScore research indicates that the more education and money a consumer has, the most likely s/he is to tune into podcasts. In fact, "individuals in households making at least $100,000 were 28 percent more likely than average to download podcasts, while college graduates were 25 percent more likely."

In short, podcasting may just be a better target for companies that want to reach out to Boomers than more traditional forms of advertising. In general, we have more money, more education, more time and more incentive to listen than we've been given credit for. I like to call us the Boom-mores.

Expect advertisers to grab onto this trend and pour bucks into reaching Boomers by sponsoring podcasts because they realize we're out there listening. What's more, since downloading requires interactivity, advertisers have a greater chance of reaching a very targeted audience simply because of the self-selection process we went through to get the podcast in the first place.

(Are you listening, car manufacturers???? Quit just screaming at us on TV and get inside our heads through our ear buds!)