Business Week recommended the following strategies for one's fifties and I included my brief comments in blue:
- Review your real estate. I will keep a primary residence. That's why I don't count my home in my retirement savings.
- Stay with stocks. Agree. I would add moving three to five years income into CDs or money markets to protect against short term drop in stocks. To me, nothing is worse that having to sell a stock during a decline because one needs the income.
- Do a benefits check. For me, the most important benefit is comprehensive health care coverage.
- Cut the cord. For me, whether to cut the cord would depend on my financial situation in my fifties. If we are doing well, I would rather help my kids with a home down payment than to leave them a large inheritance.
- Devise a good tax strategy. Fully agree. My financial advisor has identified several ways I can minimize taxes when I retire.
Overall, I would summarize the fifties as "confirm readiness and tie up loose ends." This is the time to have a good financial advisor giving a independent third party assessement of readiness.
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This is not financial or retirement advice. Please consult a professional advisor.
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