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Is Right Now the Worst Time to Retire?

By Phil Stevenson, CRMP

Mortgage and Lending with PS Mortgage Lending 305-791-4874 or 888-845-6630 365768

November 24, 2013 11:24 PM

Is Right Now the Worst Time to Retire?

It has been said before and I'll say it again: retirement is slowly becoming that far off dream that everyone hopes to achieve but few ever do.

It's important to also note that the retirement I'm talking about is the textbook definition of retirement: "relaxing comfortably and without worries, etc." For retiring baby boomers and future retirees, this "textbook" retirement could look more like "working part time to supplement my low fixed income".

It's one of the harshest realities older Americans are going to have to face as the cost of living rises and previous forms of retirement income, such as pensions, continue to disappear.

According to an article in Fox Business, right now is probably the worst time to retire.

Why?

Well, yields on bonds and stock dividends have tumbled for one, home values aren't rising at lightening speed and Medicare continues to be a target of budget cuts in Congress.

Not to mention, that the baby boomer generation didn't save like their parents did, making them twice as unprepared and more likely to become impoverishment during their retirement.

In order to combat impoverishment, retirees might have to take out less from their retirement portfolio than originally planned. In doing so, they might have to make drastic changes to their lifestyles and living expenses. In addition, they will also have to figure out how to pay for higher health-care costs like sudden hospitalization or an extended stay in a nursing home.

The truth is, "textbook" retirement is becoming a far away dream. In the future, more creative retirement planning will be necessary as traditional forms of retirement income continue to disappear.

I just think: if things are bad now, how will they be for my generation?

Hopefully, a solution is found by then.

At PS Financial Services, we're here to help you take the plunge into a comfortable retirement. If you think a reverse mortgage is right for you, or you simply have questions, let us know by calling (888) 845-6630 or via email at info@PSReverseMortgage.com.

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Eric Crane -- Your Full Service, Discount Fee Realtor®

DPR Realty LLC - Gilbert, AZ

Greater Metro Phoenix Arizona

Hi, Phil -- some good observations! You know, I worry that with the debt the government is taking on, that they will run the risk of severly debasing the value of our dollar (and purchasing power), just as the bulk of baby boomers are retiring and unable to earn money any longer. there are some potential time bombs out there.

On a side note, have a great Thanksgiving Day!

Nov 24, 2013 11:33 PM

Dan Hopper

Dan Hopper - Gold Way RE - Westminster, CO

Colorado Broker / Referral Services

Good topic for discussion, Phil. You are so right, not many of us can enjoy the luxury of retirement after what we have experienced in the last 10 yrs. Wall street has sure dampened what we had in our IRAs and 401Ks. With losses of up to 50-60% of savings, and reduction of gross sales in real estate of those same % of losses, it has been very difficult to recover, period!!

It is very important, as business owners, to create OTHER streams of income that is not ALL tied into the real estate industry! We are doing just that, so we can slowly move into a retirement plan that grows and is recession proof!!

It truly works!!

Nov 24, 2013 11:34 PM

Phil Stevenson, CRMP

PS Mortgage Lending 305-791-4874 or 888-845-6630 - Miami, FL

"Mortgage Nerd" in Miami, Florida and Texas

Eric, thank you! It's becoming an increasing problem as of late but I feel baby boomers are going to be impacted the most directly in the upcoming years. That's not to say they aren't shifting to more suitable alternatives (i.e. starting a second career) but what about the ones that want (and hoped) to retire and do something for fun rather than profit. Some saved up for it and they are still up the creek without a paddle. A Happy Thanksgiving to you as well!

Dan, that's very good to hear! We are on the cusp of a new frontier in retirement and the faster we find alternatives for baby boomers and, eventually, ourselves as well, the better off we'll be. Of course that is easier said than done but the initiative is there, hopefully the outlook is brighter in the future. Thanks for stopping by!

Nov 24, 2013 11:41 PM

Is Right Now the Worst Time to Retire?

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Phil Stevenson, CRMP

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