Financial Products, Baby Boomers

Boomers have freedom both to spend and withhold spending.

Because they already have enough housing, cars, and clothing, they not only have the freedom to spend on what they want; they have the freedom to withhold until they find exactly what they want, whether that’s a Jaguar, a Hummer, or a Cadillac. This elevates the importance of brands in reaching growing, profitable market segments. If brand managers can create fans among aging baby boomers, the likelihood of converting interest into a sale is greater, because the boomers can

• However, Mick Jagger himself seems each year to discover another new family

responsibility, if you follow the paternity suits filed in various places.

probably afford to buy it. That’s a major difference in their lifestyle compared to a decade ago.

Aging baby boomers become fans of brands that fulfill certain expectations-quality products that are aesthetically pleasing, personally satisfying, natural, convenient, easy to use, and, if possible, noncaloric. Expect empty nester boomers to indulge in luxury travel, restaurants, and the theater, which often means they need more fashionable clothing, jewelry, and the designer brands found in department and specialty stores. They watch their waistlines and diets and are good prospects for spas, health clubs, skin care products and cosmetics, beauty parlors, and healthier foods. As they approach retirement, they purchase condominiums and begin to take more frequent but perhaps value oriented vacations, often purchased online. They need financial planners with financial products oriented toward asset accumulation and retirement income-perhaps even stocks that pay dividends.