I Will Be Able to Retire

I love what I do, I make decent money, my kids are grown up and independent and I am strong and healthy. Call me oblivious, but I was at a point in my life where I had few worries and every day held a new promise.  It’s strange, but when the economy was stable and my investments were growing, I hardly gave much thought to retirement. I knew that I was going to wait until I reached 66 but I didn’t think much past that.  However, that seems to have changed considerably since this past October.  Lately every thought in my head, every plan that I make seems to be overshadowed by the damage done to my retirement fund.  I can’t stop thinking about my future; will I have enough money or will I have to work longer?  With the contributions I have been making over the years, I always assumed that I would have more than enough to settle into my  golden years without worry but, I can’t loose this nagging feeling that it isn’t going to be enough. I have talked to friends who feel the same way too.  It’s such a rude wake up call that none of us were expecting and it is coloring every move we make.

An article in US News & World Report reminded me to let go of these negative thoughts because there are still many reasons to be optimistic about my retirement prospects.  One of the best reasons is that Social Security guarantees cost-of-living increases.  I had forgotten this simple fact and even though most years that increase isn’t much, it does help.  The government is going to have to find a better way to manage Social Security, but they are never going to do away with it for those of us who have already paid into it. You know it’s funny, but as I read this article, I also realized that I don’t need to start drawing down my 401K immediately after I retire.  I can wait until I am 70 1/2, so that still gives me 10-1/2 years to recoup my losses (not 6) if I need it.  Compound that with the fact that I am still investing regularly and getting bargain prices, means that my losses should evaporate much more quickly when the economy begins its upswing.  There are still some concerns I have about medicare and health insurance in general, but I need to see what this new administration proposes before I decide what I need to do about that.  Right now, while I am working, I have good insurance so I don’t need to worry about that for a while.

I know we are in for a bumpy ride and a lot can happen in the next six years but I think that things are going to be financially okay for me and I will be able to stick with my retirement goals.  If not, I will work another year or two.  After all, it’s not the worst thing that could happen.

Retirement 101

 Downsizing, Upsizing and Rightsizing. Boomers were the first generation to be able to graduate from high school and enter the job market expecting to earn a living wage.  Now, they are the first group of employees that are perceived by management as ‘LESS’ valuable than younger, entry level, lower paid Gen Xer’s entering the job market today. You probably know of at least one baby boomer who was forced to take early retirement or who was forced out of the job market due to cut backs and streamlining. These boomers find themselves too young to receive any social security benefits and apprehensive about going back to school to acquire new skills.  But, without a college degree or high technology skills, many are currently working in lower paying jobs or sitting home frustrated that they want to work but can’t find employment. Compound this situation with the current inflation and a failing economy and the question arises, will our generation, the one that was promised a better life than our parents, end up worse off than our parents? Read more »

How Will Obama Repay Baby Boomers?

The elections are finally over and the United States, with much help from our generation, has elected a new president.  With this new president comes the pro-offered promises of change and hope and a new vision of America; but what impact will this new administration have on retired and near-retiring baby boomers?  Just like everyone else caught up in the economic woes, baby boomers are facing their own set of problems.  Not only have we taken a big hit on our investments, but some of us now find ourselves helping out with family members who have lost jobs or gone into mortgage default.  En masse, those of us still working are rethinking early retirement and looking at the prospect of working two to five more years just to recoup our investment losses.  Many of those baby boomers who have retired are now looking for part-time jobs in order to make ends meet. So, President-elect Obama,  what do you have in store for us?  One campaign promise that you made was that seniors making under $50,000 would no longer pay income tax.  However, many Democrats think that this is not only a bad idea, but low on the list of things that need to be done.  Read more »