2011 - A Pivotal Year

Financially, 2011 could be a make or break year for our retirement savings. Here are a couple areas of concern:

Economy - Recovery or double dip? I have been expecting recovery. However, the Friday unemployment report of 9.8% was discouraging. I still believe recovery is the more likely scenario given that many businesses are doing well. Hopefully, employment will increase once businesses have more visibility government business and tax policy.

Stock market - Bull or bear? I am expecting positive stock market return for 2011, but am prepared for a possible bear market. Recently, we have put more funds into equities. We plan to take profits as the market advances. Also, I will be more prepared this time to short stocks if the economy turns bad again.

As long as the economy continues to recover and stock market returns are at least flat, I believe we can stay in retirement. However, if another recession or significant bear market should occur, our plan to stay in retirement may need to be revised.

For more on New Beginnings, check back every Sunday for a new segment.

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

Copyright © 2010 Achievement Catalyst, LLC