The best advice in Liz Pulliam Weston's latest column for MSN, How to Retire in Bad Times can be summed up in one word:
DON'T!
I have a number of friends who are in the midst of plans to retire. I must admit that I don't understand why they are so unwilling to put off those plans for another year or two to wait out the recession. These are not people who are being forced out of their jobs, nor do they have health issues so severe that they must retire. It's more that they have been planning for retirement day, they have their eyes on a particular date, and they are unwilling to let the current economy change their plans.
I understand the motivation. I understand the desire to be done with full time employment. But if working awhile longer would assure me of money to last through the NEXT recession and the one after that, while leaving the job field right now might endanger it--heck, I'd be working past that theoretical retirement date!
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I can undeerstand their reluctance, having been planning for retirement since my early 40s. But i agree that moving forward with retirement during such shaky times is not a smart move. They must be very confident they'll never fall ill or suffer unexpected financial challenges.
what i meant to say is, i've been DREAMING of retirement since my ealry 40s, but i've been SAVING for retirement since my early 30s!
Well, I think it all depends upon how well someone is set up and the sources of their retirement revenue.
If someone has the first 7 years or so of withdrawals sitting in cash, then a down market shouldn't deter their plans, since they won't be selling securities in a down market.
If someone is expecting to receive the bulk of their income from a pension or from rental properties, then a down market shouldn't deter them.
If someone is retiring with such substantial assets that their current nest egg is more than sufficient for all of their future financial needs, then a down market shouldn't deter them.
If someone...like say, ME, is of more modest means, then yes a down market should deter them. I'm 41 so wasn't expecting to retire this year no matter what the market does.
The financial system could face even more problems from a little-known corner of the credit market credit default swaps.
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I read this post way late, but felt compelled to comment, seems to me your definition of retirement meaning how you expect to spend your time influences rather you wait or retire now. If you expect things to improve then wait but how long are you willing to wait and when is the next burp coming down some could wait forever but maybe thats their definition of retirement
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