Jan 11 2009
Never Retire?
On National Public Radio last Thursday, Economics correspondent Chris Farrell made the assertion that retirement is changing. He went as far as to say that the days of absolute leisure in retirement was over as we know it, unless you were fabulously wealthy. Work, he said, will always be a part of retirement. Part-time work and periodic employment will be needed to round out retirement.
To some people, the idea of putting in some hours a week for spending money is no big deal. In fact, go to Walmart or other stores and you will find more than a few people that work just because they are bored at home. While some older folks might need the money, there are a few that just work to keep busy. No problem.
But what if your idea of retirement was to travel, or do volunteer work, or fish, or whatever? Who wants to spend their retirement working when they no longer want to? After all, aren’t these referred to as the “golden years?”
Farrel’s analysis may very well be accurate for early baby boomers who lost half of their assets in this latest market crash. Retirement might be looking very different for them, especially if they are nearing retirement and lost a great deal of their assets.
Aside from winning the lottery or inheriting a fortune, what else can you do to not HAVE to work a job if you hit sixty? Ideas?
Well, for starters, meet with a financial planner that is highly recommended by other people you know. Get some ideas. If you want, meet with a different one, too, if you can afford it. Lay out a plan. Of course, include long term care insurance in that plan. Just to let you know, that there are other ways of getting together enough financial clout for your last part of life other than just a portfolio of good stocks. There are, for example, rental units. It may be a hassle, but it would be worth the hassle if you could have a residual income when work is no longer a good option.
There are also small businesses that could be opened to bring in steady money. These businesses could even be in something you love, such as a flower shop in a town that doesn’t have one. Or it could be to provide simple handyman services. All of these may not make you as rich as you would like to be. But they might fill in the gaps very nicely.
The American dream is often changing because of economic realities. I remember when Money magazine told is readers back in the early ’90s that it was practically impossible to save for a college education. Instead, it said people should save for their retirement as completely as possible and shoot for the grants that the government would provide.
Sometimes thinking outside of the box makes it possible to get the money for a child’s education or for retirement. Some folks raise certain livestock and then sell it to pay tuition. Other rent out parts of their homes or buildings to sustain themselves for a steady income. Perhaps it is too late to fully expect to make enough money to fully retire. I’d like to think not. Let’s hope Americans can use their ingenuity to still attain that old age dream.
Interesting perspective, because finding a good planner means s/he will actually grow with you. Now I’d be curious to know what you think about whether older planners are as up to date on the most current investments and strategies. Thanks for stopping by.