Planning Retirement in tough economic times
This article is not intended for those with a considerable pension or a huge investment account. If that is you, you are already home free.
But if you are one of those who have precious little other than Social Security to rely on in retirement, read on. This page will try to address the current state of affairs in the economy. We also have some recommendations and endorsements. After the recent economic meltdown many lost their nest egg and had their savings decimated through no fault of their own.
Millions have to consider working beyond retirement age. Multiple streams of income may be required to provide for your well being in what you had thought would be your "golden years".
How does one do that?
Millions have found their jobs evaporate in the final years of their working life, leaving them not only with no pension, but also with no working income. Being unemployed for a person over 50 is no joke. It is a calamity.
Planning retirement sounds like a fantasy for a person in such a situation. It is not a strategy reserved just for those persons 65 years of age or over. It is a subject important to all. It is never too early or too late to start. Early preparation for retirement can spell the beginning of a new and challenging dimension of your life.
Looking for work in this difficult economy? When the job market offers little opportunity, self-employment and entrepreneurship are often the only solutions.
Competition in the job market is fierce - in some areas six applicants for every available job. Credit score can be a deciding factor in the hiring decision - at a time when the unemployed have had to struggle to keep up with payments.
It’s difficult enough to find a job, never mind a good job. Now, even if you are qualified, you may be cut off from opportunity due to poor credit.
Don't submit to doom and gloom, but think about the kind of life you really want. Begin now to take steps toward attaining the lifestyle you always had in mind.
What will you retire to?
Instead of planning retirement you may find yourself looking to create alternative income. Income in areas you may not have considered before. While you were busy working for someone else, it may not have entered your mind. When the rude awakening came, you may have suffered the indignity of just how unreliable job "security" was.
Social security, if not failing, is inadequate if that is your only source of income in retirement. These payments are usually not enough to even scrape by, so you have to find other ways to be sure your needs are met. The cost of living will most likely continue to rise. Have you noticed how prices seem to always be going up, and yet the powers that be claim there is no inflation?
Cultivating multiple income streams
Multiple income streams - that has become a well-known term. Since the idea of building up a massive nest egg has come to grief in the recent economic meltdown, creating alternate income streams is the only way out. You simply must cultivate different income streams to provide for yourself.
Work longer, not harder. On the positive side, today's retirees are healthier and more vital than previous generations. Being productive and engaged well into retirement age is more common than ever.
Many successful retirees have reengaged. Most have found a new self-employed career on their own terms. Even a modest supplemental income from working can have a dramatic effect.
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