Friday, April 04, 2008

Six Minefields Which Can Ravage Retirement Resources

Katy Marquardt of US News sets forth six dangers which can leave a retiree singing the penniless blues. The points include [1] lack of retirement plan (slightly less than half of those surveyed by TD Ameritrade had a written plan), [2] underestimating the likely post-retirement lifespan (close to 78 for all retirees, probably 80 for women retirees/widows of retirees), [3] underestimating spending (during the healthy years, discretionary spending increases may offset spending decreases elsewhere--don't plan on a major decrease in spending after retirement), (4) unusual expenditures (perhaps bailing out a relative or major house repairs), (5) ignoring the rapid price increases in medical care (at the very least, plan on Medigap insurance), [6] ignoring inflation (which has been more of an issue recently than in many previous years).

Ms. Marquardt's list appears to be well-thought out and worthy of consideration. One option to consider, ask your banker or accountant if they know of a financial planner which you can afford.


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