Friday, September 28, 2007

Business Week - Retiring Early Strategies: The Fifties

Business Week's 2007 Annual Retirement Guide is dedicated to retiring early. The issue covers recommendations for what to one's 20s through 50s. My Wealth Builder will be discussing these strategies on Fridays during September, 2007.

Business Week recommended the following strategies for one's fifties and I included my brief comments in blue:
  1. Review your real estate. I will keep a primary residence. That's why I don't count my home in my retirement savings.

  2. 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.

  3. Do a benefits check. For me, the most important benefit is comprehensive health care coverage.

  4. 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.

  5. 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.

For more on Reaping the Rewards , check back every Friday for a new segment.

This is not financial or retirement advice. Please consult a professional advisor.

Copyright © 2007 Achievement Catalyst, LLC

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