Nov 06 2008
Has This Economy Affected Your Retirement Plans?
We usually refer to “family planning” when it comes to deciding when to have children. Today, I’m applying it to the another major decision in our lives and that of our families–retirement.
With the economy in such turmoil, many people are worried about retirement accounts, the right timing to say “bye-bye” to their jobs, and how this big decision will affect their households.
My mother just had the same dilemma. She’s 56 years old and has worked hard as a Special Education Teacher for nearly 30 years. There were a few things that made her start contemplating retirement. Usually, a relatively healthy woman, she began having illnesses due to stress. I had never seen someone keep a cold as long or as frequent as she did and her blood pressure was through the roof. She always wanted to travel while she was still able to, but with her work schedule, she was barely able to take time off. I think the icing on the cake was when her granddaughter was born and she was unable to be here for it (she lives in NC and I’m in TX). On the other hand, the economy made her fearful that this may be the wrong time.
After doing her own research by reading books on planning for retirement, consulting with a financial advisor, seeking advice and approval from my dad (who retired a few years ago), my brother, and me, she made the decision to do it. It was not an easy decision for her, but after she made the decision, she knew it was the right one. She finally decided that regardless of the state of this economy, her health and well-being were more important. Her last day at work was Oct. 31st!
I understand that not everyone is able to make such a decision right now, regardless of their health and whether they want to travel. I also realize that retirement planning comes long before the age of retirement. My parents happened to sacrifice a lot through the years to have income from real estate during their retirement years. Although everyone may not be in a position to do something like that, I think it’s important to at least think about how you want to spend your latter years, discuss it with an advisor, and plan for it as early as possible.
With the state of the economy, it puts some unsurity for those of us who are a little further from the retirement age than your mother. It’s times like this when you see what your financial portfolio is really made of.