Retirement Tips for the
Current Economy

Here are five retirement tips to help you through these rough and anxious-ridden times.

While most people are worried about the current economy, finding the “ideal place to retire” may be the furthest thing from their minds. In fact, you may have considered putting off retirement until the economic situation is more favorable. In the words of Franklin Roosevelt, “There is nothing to fear but fear itself.” These words bear repeating as we face a global economic meltdown.

1. If you have a 401K plan through your company, now is not the time to withdraw funds, but to continue to contribute as much as you can afford. Remember, even though you may have suffered a significant amount of financial loss, maintaining the 401K enables you to continue to purchase equity at a low price. When the market corrects itself, you will be in a much better position

2. Keep your money in the bank; whether it’s a savings or checking account. The FDIC has increased insurers’ deposits to $250,000.

3. Pay down your debt. If you have credit card debt, begin by paying down the highest interest rate card first. Once that card is paid off, take the same amount of money you used to pay off the first card and pay off the second, and so on.

4. If you can’t afford it; don’t buy it. Pay with cash whenever possible. Do not sign up for new credit cards.

5. If you are deep in debt, you may be considering filing for bankruptcy. Keep in mind that if you do, this action will be shown on your credit report for the next 10 years. Call the credit card companies to determine if you can lower interest rates, or work out a payment plan. Sell items on eBay or have a garage sale to help you to alleviate the debts.

Remember, you are not alone. The world is on the worst economic downturn in years. If you haven’t already set up a budget, now is the time to do so and stick to it. Sit down with your family and discuss ways in which you can tweak the budget and save additional money by considering these retirement tips.

If you have questions about your retirement account, 401K, IRA, or other money market accounts you may have; seek the advice of a financial counselor who can assist you in determining the best course of action.