| |
Copyright © 2008
Paul McBride
There's much to be concerned about: traditional pensions are disappearing and Social Security is on the road to bankruptcy. Yet some of the most significant threats to your nest egg aren't the ones getting the headlines.
Setbacks like losing your job and life-threatening medical conditions are surprisingly common in later life.
A recent Boston College study has found that the results can be particularly devastating for those nearing retirement. The college's Center for Retirement Research studied people in their 50s and 60s and found that: - About 1 in 5 lost their jobs during a 10-year study period from 1992 to 2002. Among married couples, nearly one in three experienced job loss. - Forty-one percent of those studied were diagnosed with a major medical condition such as heart problems, diabetes or cancer. - Thirty-four percent experienced health-related limitations on their ability to work. - Eight percent were widowed, 7% experienced a severe disability and 4% divorced.
Overall, the study found 6 out of 10 people in their 50s and 60s experienced some kind of serious negative shock that threatened their financial security.
How to protect yourself:
These are scary statistics, but they convey an important truth about retirement planning: you can't assume everything will go right.
Here's how to put that knowledge to work:
Don't put off saving for retirement.
The more money you have piled up by your 50s, the better you'll be able to survive whatever surprises life throws your way. People who put off retirement to save for other goals, or simply spend more, are missing out on critical time that can help them growth their wealth. But they're also leaving themselves vulnerable to the setbacks described above that could prevent them from accumulating needed wealth.
Take advantage of any workplace retirement plans or, if you don't have access to any, start setting aside money on your own.
Get covered.
Health and disability insurance can help insulate you from the financial fallout of illness or accident. If you can't get this coverage through an employer, consider buying individual policies. If you find yourself without health insurance, read "A survival guide for the uninsured" for tips on how to protect your well-being.
Live a healthy lifestyle daily.
We can't make ourselves immune from disease, but we can better our odds for a long, healthy life by eating right, exercising, getting regular checkups and finding appropriate ways to deal with stress.
Continuously update your job skills and contacts.
Keep yourself marketable by taking on new responsibilities or learning new skills through courses or seminars. Look to start multiple sources of monthly income through prudent investing that are independent of your employer.
Don't Rely On Others To Manage Your Money.
Learning the basics of investing can increase your rate of return and prevent you from working with financial advisors who may have interests that conflict with what's best for you.
Paul McBride specializes in creating extra monthly cash flow through part-time and full time home businesses and teaching customers how to manage their own financial investments.
Free information available at http://www.jpwealthintelligence.com/?t=ar8
 EasyPublish™ this article - publishers click here
More articles by Paul McBride
- Private Lender Real Estate Financing versus Conventional Mortgage (Michel Lautensack)
A discussion of seeking private lending versus a conventional mortgage and the advantages of using a private lending source. - How to Apply for a Credit Card after Bankruptcy (Stephanie Andrews)
It can be hard to get back on your financial feet after bankruptcy. As you start working on rebuilding credit, applying for a card will be an important issue. There are many options available for those with a less than perfect credit rating. Finding the right one, however, takes some time and effort. Here are a number of steps to follow to make sure you get the right card after bankruptcy. - Automated Forex trading platform (Robert Farrel)
An automated trading platform is used both by trading system publishers, and the investors who subscribe to them. Using the platforms, traders can track marked-to-market performance using several different metrics for verifiability. This article describes various types of automated Forex trading platforms.
|