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Finance guru Richard Salmen opines on effective retirement planning and why “bag lady syndrome� might not be such a bad thing.

This is the first in our series: "Five Questions," a regular ReZoom.com Finance feature showcasing the expert opinions of some of the country's great financial minds.

As a senior vice president with GTrust and a chair of the 29,000-member Financial Planning Association, Richard Salmen has dedicated his life to the creation of solutions for those in need of financial guidance. We recently sat down with Salmen to find out what he thinks about the first wave of boomers' reaching the supposed retirement age.

1. What do you see for the future of boomers approaching the retirement age? Will they enjoy "the greatest transfer of wealth in history" or will their last years be marred by crises in Social Security, healthcare or insurance?

I already see the start of the baby boomers inheriting a significant sum of money. Our economy is such a growth engine that I do not see social security imploding the way many pessimists do. My first big concern for the baby boomers was described earlier when I said that they will have trouble managing cash flow and saying no to their children when they are in retirement. My second big concern is that they are going to, on average, live a long time. This makes having enough money a challenge but the even bigger challenge will be for them to lead a meaningful and fulfilling life over a 30 or 40 year retirement. Human beings need a purpose in life to be happy and I don't think most baby boomers have given much thought to what the purpose of their life will be at that time.

2. What do you think is the biggest financial challenge that boomers face? There are so many to choose from – paying for their kids' educations, caring for their aging parents, planning for retirement, credit card debt, health insurance issues ...

Managing their own cash flow needs as they transition into retirement will be the biggest challenge that baby boomers face. They have been part of the highest earning generation in history and everyone from their children to their parents has looked to them for money. Coming to grips with a finite and reduced cash flow in retirement will be a significant challenge. Most of these baby boomers do not understand the concept of a budget and will need to learn budgeting skills in order to not run out of money in retirement.

3. What is the biggest excuse you hear among people who do not save?

The most consistent excuse is that they will save as soon as they get their credit cards, automobile or other debt paid off. The problem is that each year when we hold the discussion about saving and investing they have added to or kept the debt balance the same so the excuse is still available. If they are not yet maxing out or contributing to their 401k plan we can usually get them to do that because it requires very little intervention on their part. We usually log into their account online with them right in our office to make sure it gets done.

4. Speaking of saving, are you familiar with the term "bag lady syndrome," the idea that many single women approaching middle age are panicked by the prospect of losing their financial independence and winding up destitute?

I have heard of this concept. Actually, in my experience we have a significant number of single women as clients in our practice. We have found that single women are much more likely than single men to seek out the advice of a financial advisor. It may be their perceived fear of being financially destitute, but it is more likely their willingness to seek advice and follow that advice that brings them to us. Most of our single, male clients were married when they started working with us and stayed with us after their divorce.

5. Please name one of the least known ways to save money, in any area of life.

This one is a bit of a challenge. At the top of the simplicity scale is to simply empty the change out of your pockets each night into a jar and then periodically deposit this change into a savings or investment account. The biggest mistake most people make is thinking that they cannot save or invest until they have a large pot of money. Well, the best way to get a large pot of money is to start putting money regularly into a small pot. Before you know it you will have accumulated a sizable sum.

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