Market Meltdown Illustrates The Importance Of Retirement Planning

2/04/2009

posted by N. Sioris

Stumble It!

If there is one thing we have all learned during the last 6 to 12 months, it is how crucial solid retirement strategies are for our financial well being over the long term. Diversification, risk management, and age appropriate investments are just a few of the lessons that we should all take away from this economic disaster. Below are a couple of interesting stories that I notices over the last few days, that speak to this topic.


Wall Street Crushes Retirement Plans For Former Economics Journalist

It seems that no one is immune from the effects of the devastation taking place on Wall Street and Main Street.
A former economics journalist and recent retiree, Robert Lyle was caught short with too much of his savings in stocks. Now his retirement income is much less than what he had planned for. He wishes he had an old-fashioned pension instead of a 401(k).

Listen to his story at this NPR link.



Helping Mom With Retirement

The issue of what adult children can and should do to help assure that their parents are financially prepared for retirement is one that's getting more attention as lifespans increase and we become increasingly reliant on our personal savings to fund our post-career lives.

If a parent isn't on the ball with their own retirement planning, it may be time for adult kids to step in.

Indeed, a global study of inter-generational issues released early last year by The Hartford found that more than a quarter of Americans 45 and older say they are currently caring for both children and parents or older relatives. Given how badly the retirement savings of many retirees have been hit by the market meltdown, I wouldn't be surprised if that number has already increased or will over the next few years.

Read the complete CNN Money.com article here.