Baby Boomer Retirement Planning Tips
Don Mutch here:
A lot of financial news has concentrated on the ongoing recession that we are currently in at what stage is a debatable topic. This economic situation bears the question, how do you position yourself investment wise to counter this economic downturn? Honestly, everyone’s situation is different and one needs to take a good look and evaluate where there financial position is at this point in time. Remember, your retirement accounts may look down maybe 10-40% now, but you must ask yourself, do you need the money now? If so, I would consider now look at all your retirement savings accounts and see which ones that have the least draw down and consider taking out the money in a 3-4% withdrawal rate. The actual percentage will be determined by what type of standard of living you want to live in initial golden years. Yes, I said golden years, this still can be with proper money management an exciting time for you and your love ones.
The reason, I suggested withdrawing from other retirement saving first is, give the market time to eventually turn in your favor. Historically, the stock market with time is on your side, it all boils down to what is your timeframe of when you need the retirement funds. I would also suggest your asset allocation depending on your timeline until retirement be in a fixed income low risk type of investment until the market turns in your favor. Risk tolerance needs to be accessed and the general rule of thumb is as you get older, your asset allocation should steer towards lower risk capital preservation type investments.
Do I recommend discussing this with a professional advisor, absolutely. But one caveat you do not, I repeat do not have to do necessarily what they say. Remember this is your money, and you ultimately are responsible for it. Looking at all your options is what the professional financial advisors do for a living so hold them accountable. Am I serious on this account damn right I am. Also with your own due diligence and research you then can make an informed decision. Hopefully, this has been some basic baby boomer retirement planning tips that can assist you in planning this important time in your life and help you enjoy the fruits of your many labors. Good luck and let me know your comments on was this information useful and topics as baby boomers you would like to learn more about…. this is Don Mutch signing off.

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June 1st, 2010 at 7:16 AM
Thanks for your comments. My take on where we are at as of the economy is am concerned. Believe the Dow will hit 8500 before 12,500. Believe too much termoil in the world markets, and we USA need to keep our own house in order. Let’s get our unemployment numbers headed in the right direction, non-farm payroll numbers come due this Fri. June 4, 2010 hope improving.
But I do question, the tremendous number who are out of work now. I would encourage those to take classes to learn a skill that is marketable in today’s world wide marketplace. HARD WORK WILL PAY DIVIDENDS AND ASKING GOD FOR GUIDANCE AND WISDOM WILL HELP YOU…. Baby boomers be good stewarts of your money now more than ever, spend on only things you absolutely need, food, water, shelter… Give to your respective church and charities of your choice. Believe me when I say if you give of yourself time, resources etc. you will receive multiple times in return. Check the scriptures.
Time to hit it, keep a smile on your face, pray, go out and meet the challenges head on, and ask for God’s guidance and your will succeed… Take care and have a blessed week, your friend and hopefully inspiration!
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