Today's struggling economy means that you are going to have
to recession-proof your retirement, right now! Here are
nine steps to take the stress out of retirement planning.
1. Acknowledge reality. Read, research and understand the
many challenges to putting aside enough money to retire.
Don't allow the dismal statistics to paralyze you with
stress. Take power over reality by vowing to positively
reach your goals.
2. De-stress your retirement goals. Pensions were the
mainstay of your parents' generation. Today, most Americans
outside of protected government jobs will have no pensions
or possess 401(k) plans overly dependent on a volatile
stock market. Think smaller in terms of housing,
recreation, travel and other traditional retirement goals.
3. Double your savings, right now. It is never too late to
increase your savings, even if you can only set aside a few
extra dollars a week. Simplify your life and put off major
purchases. It's better to take small steps than to feel
powerless. Every little bit will help.
4. Make retirement your priority. You will age, and the
Social Security system cannot cover the high cost of
living. Period. Put retirement at the top of your list of
priorities right now, especially if you are expecting a tax
refund this year.
5. Consult experts. Even if you can only afford one session
with an outside financial consultant, it can be money well
spent to advise you on how you can proceed. You can also
find free expertise from free seminars offered by community
colleges and informational articles on the Internet.
Today's high foreclosure rates have led to the opening of
free consumer credit and financial offices in most cities
to help people save their homes from foreclosure. Even if
you aren't facing foreclosure or don't own a home, take
advantage of the opportunity to sit in on any free
financial and credit counseling sessions available.
6. Empower yourself. Many community colleges offer
continuing education classes on finances that also focus on
retirement planning. Many of these classes are free or
low-cost, especially if you are older. Knowledge is a
powerful weapon against the stress of inaction and
ignorance.
7. Be flexible. An example of what happens when people
don't diversify is Enron. Many people whose 401 (k) or
personal investments were in Enron stock lost everything.
Diversifying your investments in savings bonds, savings
accounts, stocks, real estate or other sources also
minimizes your risk. Again, consult outside expertise and
take notes.
8. Simplify your life. Eliminating extravagances now will
prepare you to live without extravagances during your
retirement. Tighten up, and you'll be more prepared for
unexpected expenses.
9. Be proactive. The greatest majority of Americans do not
have the resources to retire at 55 or 65 or even at older
ages, as did past generations. Update your skills to be
ready to re-enter the workforce. The bonus is that an
active mind is a powerful anti-aging deterrent, in addition
to being practical. Most cities have one-stop centers
established by the U.S. Workforce Investment Act that can
help you find free or low-cost resources to update your
skills. These centers are not just for the unemployed, and
there are no age limits, so sign up for skills classes and
seminars.
We all want to recession-proof the plans we have for
retirement, but retirement planning can sometimes create
stress. We hope our tips have helped to reduce yours.
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Ruth Klein is an award-winning business owner, best-selling
author and marketing and time management consultant whose
clients range from solo entrepreneurs to the Fortune 500.
Sign up to receive Ruth's 7 Part Mini-Course on Branding
and Productivity. http://tinyurl.com/25tqo5
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