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Retirement And The Recession: What You Need To Know
By plrprousers | April 20, 2009
Retirement can always seem like somewhat of a gamble, even during the best of times. After all, will you have enough money to see you through up to three decades? Will you have enough to counteract the effect of inflation? These questions alone are enough to make any baby boomer nervous; however, add the recession into the equation, and you’ve got a recipe for a potential disaster. If your retirement age falls right in the midst of the bear market, then you’re going to need some help with your retirement planning. Luckily, we’ve got the best tips and techniques on how to comfortably retire in the midst of a weak economy:
Get Real Help. Sure, retirement calculators are great financial tools when it comes to planning your retirement; however, if you’re retiring in the midst of the recession, then you’re going to need the advice of a registered investment advisor in order to safely do so. Your investment advisor knows that your retirement savings will need to counteract withdrawals and a poor market performance, so he or she will be able to give you the best investment advice.
Stay In The Market. It can be tempting to put your entire portfolio into safe investments, but in order to counteract the nasty effects of inflation, you’ll need to keep a portion of your savings and investments right in the stock market. If this makes you a bit nervous, remember: markets have a cyclical effect, no matter how bad things get. This means that the markets will inevitably improve in the future, which should increase your post-retirement cash flow.
Consider Your Equity. If you’re retiring in the midst of a bear market, consider using your home’s equity to cushion your retirement savings until the economy improves. However, only utilize this option if you absolutely need to – you don’t want to add debt to your financial responsibilities, do you?
Readjust Your Retirement Age. Okay, so no one really wants to retire later, unless they truly love their job. However, one of the best options for counteracting a potentially poor retirement is to delay your retirement age until conditions improve. This means that your nest egg’s health will improve – and you’ll have the added bonus of more cash to retire with!
For more information on smart retirement planning, visit www.kenhimmler.com, the IRA and 401(k) experts!
Authored by Kenneth Himmler, Sr.
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