You Can Salvage Your Retirement Plan

Even as our economy flounders out of the “Great Recession” and staggers toward the “fiscal cliff,” you can salvage your retirement plan.

You can salvage your retirement plan

The same principles of saving and investing that have worked in the past still apply today, in spite of what many “professionals” are saying. The first step is to build and execute your plan based on these four criteria:

  1. How much you currently have saved and can add to your savings each month.
  2. What long-run rate of return you’re aiming to receive.
  3. How much money you need to live each year and how bad inflation will be.
  4. When you plan to retire and how long you expect to live.

You may have little or no control over some of these factors, but others, you do.

You can decide that you don’t need quite as big a home in retirement as you did while raising a family. You can choose to work a few more years. Alternatively, you can choose to sock a bit more away or try to reach for higher returns.

Don’t base your decisions on what you wish had happened, how much money you’d like to have, or where you want to live. Work with the facts, please.

The first step in rebuilding your retirement is to figure out where you are now. As painful as it might be, open your plan statement and take a good, hard look at the numbers you see. That’s your starting line for your future.

After that, it’s a question of balancing your priorities:

  • Your time.
  • Your risk tolerance.
  • The amount you can realistically invest.
  • What sort of retirement lifestyle you want.

Take the time to face the facts – however bad they may be – make the necessary choices – however painful they may be – and you can salvage your retirement plan.

Click here to read more about how you can salvage your retirement plan.

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