Tips For Baby Boomers Retiring in Uncertain Economic Times
If you had to choose, chances are you wouldn't want to be facing retirement at this time.
With the country at war and turbulent economic conditions, retirement does not have the normally pleasant sound it usually does.
The reason is simple.
When we stop earning an income, our thoughts usually turn to the money we have to spend.
Many Americans, including Baby Boomers, are unfortunately looking at a much smaller nest egg than they'd anticipated a year ago.
While your plans for retirement might have to be changed to better fit your new financial reality, it is still possible to retire as you've intended.
Here are six tips that will help you do so without having to worry excessively about whether or not your savings, 401k and/or IRA are going to last you for the rest of your life.
Downsize.
If your home was bought to accommodate your kids who are now grown, sell it and buy something smaller.
Instead of a four bedroom, get a two bedroom and buy a sofa-bed so that your family will have somewhere to sleep when they visit.
The same thing goes for your car; you probably don't need a 7-seater SUV anymore because you won't be traveling daily on the highway to and from work.
If you had two cars, sell one and share.
Discuss Finances with Spouse and/or Children.
Make sure everyone close to you is aware of your financial situation.
Don't be ashamed or embarrassed to discuss the topic openly with them.
You'll feel better knowing that they know and you'll also get their support in the years to come.
Make a Budget.
This is very important.
Plan for the years to come.
If you have any illnesses, plan for the cost for treatment.
If you don't, a look at your family's health history can give you a very good idea as to what to expect.
A budget will give you a very good idea as to how much money you are likely to spend monthly and annually.
This, of course, will help you to see how far into retirement your nest egg will take you.
Consider Social Security as a Bonus.
Do not include social security in your budget unless you are putting it as a savings to do something luxurious.
The future of our Social Security is at best tenuous and should not be viewed as reliable income.
Revisit Your Investments.
If you haven't already done so several years ago, take the money that you'll need in the next five years (at least) out of the stock market and put it in a solid, no-risk account.
Now that you'll have time on your hands, use it to look at the investment opportunities that are out there and decide what's best for you.
The most important thing is to diversify both the type of investment you do and the type of industry you invest in.
Do not rely on stock brokers to make these decisions for you without you knowing a thing or two about what you're doing.
Learn how your investment works and keep abreast of any news that may affect you bank balance.
Start Looking at Ways to Earn an Income.
When you retire, you're often in very good shape physically and mentally.
This means that you can lend you expertise to another (possibly smaller) business.
You may not be earning as much as you were, but at least you're earning.
You can also look at ways to turn a hobby into a business.
Do not spend too much of your retirement savings 'investing' in this hobby-business though.
Start out very small and grow from there.
It is not easy coming to grips with the fact that you've worked hard all your life preparing for your retirement only to find out that, through no fault of your own, it might not turn out the way you'd dreamed.
Recognize your disappointment; accept the situation and move on to a plan of action.
Good luck and happy days ahead!! Are you a Baby Boomer who's just retired or will retire soon?Tell us at BoomerYearbook.
com about your how you plan to live the rest of your life.
With the country at war and turbulent economic conditions, retirement does not have the normally pleasant sound it usually does.
The reason is simple.
When we stop earning an income, our thoughts usually turn to the money we have to spend.
Many Americans, including Baby Boomers, are unfortunately looking at a much smaller nest egg than they'd anticipated a year ago.
While your plans for retirement might have to be changed to better fit your new financial reality, it is still possible to retire as you've intended.
Here are six tips that will help you do so without having to worry excessively about whether or not your savings, 401k and/or IRA are going to last you for the rest of your life.
Downsize.
If your home was bought to accommodate your kids who are now grown, sell it and buy something smaller.
Instead of a four bedroom, get a two bedroom and buy a sofa-bed so that your family will have somewhere to sleep when they visit.
The same thing goes for your car; you probably don't need a 7-seater SUV anymore because you won't be traveling daily on the highway to and from work.
If you had two cars, sell one and share.
Discuss Finances with Spouse and/or Children.
Make sure everyone close to you is aware of your financial situation.
Don't be ashamed or embarrassed to discuss the topic openly with them.
You'll feel better knowing that they know and you'll also get their support in the years to come.
Make a Budget.
This is very important.
Plan for the years to come.
If you have any illnesses, plan for the cost for treatment.
If you don't, a look at your family's health history can give you a very good idea as to what to expect.
A budget will give you a very good idea as to how much money you are likely to spend monthly and annually.
This, of course, will help you to see how far into retirement your nest egg will take you.
Consider Social Security as a Bonus.
Do not include social security in your budget unless you are putting it as a savings to do something luxurious.
The future of our Social Security is at best tenuous and should not be viewed as reliable income.
Revisit Your Investments.
If you haven't already done so several years ago, take the money that you'll need in the next five years (at least) out of the stock market and put it in a solid, no-risk account.
Now that you'll have time on your hands, use it to look at the investment opportunities that are out there and decide what's best for you.
The most important thing is to diversify both the type of investment you do and the type of industry you invest in.
Do not rely on stock brokers to make these decisions for you without you knowing a thing or two about what you're doing.
Learn how your investment works and keep abreast of any news that may affect you bank balance.
Start Looking at Ways to Earn an Income.
When you retire, you're often in very good shape physically and mentally.
This means that you can lend you expertise to another (possibly smaller) business.
You may not be earning as much as you were, but at least you're earning.
You can also look at ways to turn a hobby into a business.
Do not spend too much of your retirement savings 'investing' in this hobby-business though.
Start out very small and grow from there.
It is not easy coming to grips with the fact that you've worked hard all your life preparing for your retirement only to find out that, through no fault of your own, it might not turn out the way you'd dreamed.
Recognize your disappointment; accept the situation and move on to a plan of action.
Good luck and happy days ahead!! Are you a Baby Boomer who's just retired or will retire soon?Tell us at BoomerYearbook.
com about your how you plan to live the rest of your life.
