What if you knew there were going to be more risks, more downturns and more recoveries? What would you do? Run from the danger? Go even more conservative? Or would you run towards the risk instead?
If you are in your fifties, the best you can do in the face of increased market risks is to increase your contributions and get your financial house in order. This is prime time to make concrete plans about what you envision your retirement will be like, how much you will need and how much you have. Refinance your mortgage and pay off your debts. (Easier said than done; but if you don’t focus on that now, you will not come close to where you want to be, healthy portfolio or not. Good advice for all of the previously mentioned age groups, but doubly so for this group.)
Risk isn't going away. In fact the new retirement plan may be to run towards the danger.
Paul Petillo is the Managing Editor of Target2025.com and a fellow Boomer.
1 comment:
In my opinion, the most important thing in retirement planning is securing not only the means and residual income that retirement will need, but also having the right place and community to live in. I have a brother who is 10 years older than me and he is looking at retiring in a couple years and he really has been wanting a retirement community to live in, and so he went on 55place.com and it is designed so you can search all the states available specifically for the 55 and over communities. He has found three so far that he is considering. That;s my thought.
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