Holly Hicks, workplacerantings.com
Current retirees face some challenges in today’s economic climate. It’s true that many retirees have seen a rebound in their 401k plans, but many others have yet to see the good times roll with the economy the way it is. Can current retirees feel secure with today’s insecure economy?
It’s a tough situation for anyone to figure out. Let’s examine some of the challenges that are facing current retirees. The stock market has been on a roller coaster ride for the past few years, all of the fluctuations are bound to make nervous those who depend on stocks and bonds as part of their portfolio.
The media is constantly warning us about some fiscal crisis or cliff we are going to go over, which makes investors and those who rely on the stocks quite apprehensive about what will come to pass and quite anxious.
Even though retirement can be an exciting time, the current economic climate makes individuals rethink their retirement strategies. They may wish to push back their retirement or to continue working another part time job while retired to think about stretching their dollar further.
Financial planners suggest that retirees know what they want to do with their money, that they take stock of their money prior to retirement, and make decisions about how they want to spend their golden years. There are certain things that individuals can do with their retirement funds and taking stock of all of these choices prior to retirement can make good economic sense. Make sure to take the following steps when planning for retirement.
Be certain to meet with a financial planner prior to retirement to make sure all bases are covered prior to the actual date of retirement. Make sure money is adjusted for inflation so that you will continue to have a good income stream into the future.
Know Your Benefits
Those retiring in today’s economic climate need to be aware of exactly what their benefits will do and not do in today’s economy. Know how you will be coping with health insurance, hospitalization and many things that can come your way in terms of emergencies. Make sure your health insurance and incidental expenses are covered through the retirement years.
Diversify stock options
To make sure one can capitalize on today’s economic climate they need to make sure they have diversified stock options. It is economic advice as old as time, but having all of your eggs in one economic basket is never a good idea.
Move to more stable investments
Individuals can move to more stable investments when they are taking advantage of what the market has to offer. They can often move from stable investments to riskier investments. This may make more capital for retirement.
Have a solid Plan
Those who want to retire they need a firm idea of what it takes to retire. Understand how much it will really take to retire in the lifestyle you wish to have. Most people underestimate the costs of what it will take to retire. They will also need to adjust for inflation and find out exactly what they will need in terms of retirement dollars.
Combining the above steps may help individuals feel more secure in today’s economic climate.