The nation's financial woes have those close to retirement fearful about what all the turbulence means for them and their futures. Robert Pagliarini, author of "The Six Day Financial Makeover," offer five tips on what soon-to-be retirees can do ensure their financial futures are less bleak in the midst of the credit crisis and global market trouble.
Check out his tips below.
Pagliarini recommends that whether you are in retirement or it is a few years away, you should immediately put five years of living expenses in cash and put this in a money market account. Once you do this, then you should allocate your remaining investments as follows:
If You're in Retirement:
35 percent stocks
65 percent bonds
If You're Two to Three Years Away From Retirement:
45 percent stocks
55 percent bonds
For example one person is a mechanic on airplanes and will be retiring soon. He's happy to retire but would like to make some extra money. He's thinking about starting a part-time handyman business. Another friend was an interior decorator before she retired. She loves arranging flowers and is going to work at a florist a few days a week.
If you love surfing the Internet and are good on the computer, there is a huge need for virtual assistants and online researchers. You can work from home and make $15 to $50 an hour.
You still might be able to get all your health benefits and get your 401k matched. So you're sort of easing out of retirement instead of walking out and never coming back.
This is the tough one. And if you can not work longer that's great but if you're in a position where because of the market activity lately you think you may be in a position where you might not have enough income well I would recommend you starting to think about working an extra couple of years.