I continue to faithfully glean the nuggets out of Paul Farrell’s MarketWatch article on beating the bear market. And remember: just because the stock market is up right now doesn’t mean the economy will let it stay that way. It’s always better to be prepared. The wisdom I’ve chosen for today deals with early retirement:
Yes, the rules of the retirement game have changed. Nobody “retires” in the traditional sense. Nothing’s safe. Not pensions, jobs, Social Security. You better plan on retiring earlier than expected; you may be retired prematurely, against your will. Increase your savings. Start that back-up second-career now — you may need it sooner than you think.
Planning ahead is what gets people through tough economic times. The economy runs in cycles. An up cycle won’t last forever. That’s why it’s important to be prepared for a down cycle. Especially the one that’s coming now. So, look at your finances and see what you can do in terms of putting a little more in the nest egg.
If you’re going to retire soon, move some of your portfolio into safer investments for now. If you’ve got a 7-10 years (or more) check your retirement account to make sure that it’s composed of companies with good fundamentals. When the stock market recovers, you’ll be glad that your retirement account bought stocks at today’s bargain prices.
Other posts in this beating the bear market series:
Working
Do-It-Yourself
Go Contrarian
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