While Depression Era individuals are motivated by fear of poverty in retirement and future, Baby Boomers are not as they have never experienced lack, lost or poverty.

Hence their financial behaviors are opposite from Depression Era individuals. Baby Boomers live lavishly, spending beyond their means on high limit credit cards. They are drawn to speculative investments with potential high returns as they trust risk. Their risk has paid off big.

Unlike Depression Era Individuals who were natural planners and budgeters, Baby Boomers are not. Even though they are goal driven, they disdain budgets and plans.

The Great Depression taught delayed gratification as many people waited 10 to 25 years to accomplish goals as simple a purchasing a house. Depression Era individuals were already motivated to save and plan. All they needed was investment product education. The entire financial industry evolved around product differentiation. Depression Era individuals either bought product A or product B.

Baby Boomers are not motivated to save or invest. Neither are they good candidates for delayed gratification. They had success and wealth instantaneously. They earned more than their parents and grandparents. Wealth always seems to be available, so why plan for it. Baby Boomers live good life without worry that it would be replaced by an economic depression.

Baby Boomers want good life. They will not sacrifice good life for retirement or future. However, they are open to purchasing name brands luxuries at a discount according to Ira Mayer, famed marketing guru.

If Baby Boomers concentrated on Future Spending Plans, they could locate additional dollars to invest. For example, a family can easily spend $50,000 dollars a year on luxury items including travel. With discounts, they could reduce their expenditures to $35,000 a year saving $15,000 on product purchases. Normally, sales tax on $50,000 dollars of products would be in a range from $3,000 to $7,500 depending upon state they are living.

The family with original budget of $50,000 could save up to $22,500 each year. Over 10 years that savings could accumulate to $298,000 or $643,000 assuming. The larger savings generated from discount purchases, larger investment accumulation can grow. This accumulation can be used to live life more lavishly as it brings a certain peace of mind.

All Future Spending Plans should begin with access to luxury products at a discount. The internet has sites such as www.livinginstyleonline.com to perform that task. So Baby Boomers stop planning for future retirement and Live Today In Style.

Footnotes Canada.com News 2/21/05 Article Investment Attitudes vary by Generation Cleveland Plain Dealer 10/31/04 Article First Generation Ira Mayer50+ Generationwww.epmcom.com Marketing to Women Encyclopedia Britannica Great Depression History

I proposed this loan program to Client #2.

Client #2$1.2 Million Loan Amount Current 5/25 ARM@4.25%=P&I$5,903.28/ month 5th year loan balance$1,064,681.48 Equity (assuming no appreciation)$ 135,318.35 Proposed LIBOR ARM@3.00%=Interest Only$3,000/ month Applied additional $2903.20 / month to principal for 5 years 5th year loan balance$ 971,261.81 Equity (assuming no appreciation)$ 228,738.19

You can see from these scenarios this mortgage can be a great tool to reduce your monthly mortgage payment or to shave down loan balance thereby increasing your equity.

This mortgage interest program is termed negative amortization. Rather than paying off interest over time period, you are paying of a small portion of interest but not required amount. Interest rates can go as low as 1.25%

If you want savings refinance your mortgage.