Real Life Retirement™ Services
Changing retirement strategy after financial downturn
- Have a plan to buy or sell stocks at certain prices; use email alerts to keep up-to-date.
- Learn from experience; know your risk tolerance and adjust accordingly.
- Convert more equity investments to cash to hold on to what you have.
- After big losses in 2001 stock market and losing his job in the recent downturn, Dan put off retirement.
- Now his investments are more conservative.
Looking for a job when he thought he'd retire, Dan wants to work five more years before he taps retirement income.
"I lost my job as a maintenance professional in March. My wife, who was working part-time, got a full-time job, and she likes it. I would like to find another job, work five more years, get vested and have another pension kick in when I'm 65 (I already have two pensions). I considered taking a job in North Carolina since that is a good place to retire. But I'd lose money if I sold my house now. I am hoping something local turns up."
An expensive lesson.
"Eight years ago, my goal was to retire early. I made a lot of money in the tech boom, then lost much of it in 2001. It was an expensive lesson. This time around, I got out of the stock market in October 2007. Now, 85% of my 401(k) is in cash, which has helped my portfolio keep its value through the downturn. I still have some money in stocks; I have Schwab send me alerts when the market hits different points, so I can buy or sell quickly."
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We thank Dan for sharing what worked for him. His words have been edited. The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. Examples provided are for illustrative purposes only and not intended to be predictive of future results.
The types of financial transactions mentioned may not be suitable for everyone. Each investor needs to review a transaction for his or her own particular situation. Data contained here is obtained from what are considered reliable sources; however, its accuracy, completeness, or reliability cannot be guaranteed.
All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Examples provided,
including statistical simulations, are provided for illustrative purposes only and are not intended to imply future results you should expect to see. Past performance is no guarantee of future results.