The best retirement advice after the fall

Given the recent collapse of the U.S. economy and economies world-wide, the best retirement advice today might be to not plan retiring at all, or at least expect to do some paying work for the rest of your life. This is not based on some pessimistic feeling that things aren't getting any better, that they're getting worst. Survey after survey shows that nearly everyone in the U.S. is worst off than they were two years ago. Everything is falling, from Wall Street to wages, everything but prices. It's been this way for two years now, and prospects are not bright. Week after week we hear of some new business failure, some other country crossing over to the brink of economic disaster. The facts, not our feelings, are telling us money is getting scarce, and its money you need, disposable income, to save and invest for retirement. If you're one of the many who have taken a pay cut, a cut in work hours, or have even lost your job, money to be spent against retirement just isn't there anymore and may never be there again. If you're close to retirement age but your nest egg is cracked, you might have to face the disappointing truth that you'll never have enough to retire when you thought you could. Facing up to this fact now will save you great disappointment when you enter what you thought would be your golden years.

For others, those in low income brackets, the best retirement advice might be to put your disposable income into IRAs, 401K plans, and CDs, to live frugally, to pay down your mortgage and expect to retire when you're much older than you once expected you would. It may mean dropping some of those plans for travel, for vacations, for that expensive car you've dreamed of all your life and hoped to be able to afford in your later years. The best advice for you might be to work overtime, to get a second job, to get your children out into the work force so that they can work their way through college, to give up your weekly night on the town, to settle for second class. You might be best advised to learn to do your own automobile repair and even sacrifice that gas-guzzler for a simple but efficient economy car. You might even find it necessary to commute with others to eke out the extra money you need to secure your old age. Those in this group will be well advised to stay out of investments of even medium risk, unless you're willing to put up the security of your later years. Your best course is to save, save, and save.

If you're in the upper income bracket, you're still at risk of not having what you need to retire into a life that maintains the lifestyle you currently have. Unlike the others, the best retirement advice for you might not caution you to put off your retirement or direct you to work part-time to stay afloat when you reach retirement age. You have the money to prepare. If your retirement plan is balanced, distributed between IRAs, 401Ks, CDs, employee matched contributions, intelligent real estate investments, and medium and low risk stock investments, you may very well be able to maintain your current lifestyle in your retirement. For you, the best retirement advice might be to plan to retire into a more modest lifestyle and be happy if you can achieve that. Nothing is certain, not even you wealth.

For all, the best retirement advice is to face the facts, the old retirement hopes are no longer applicable. Let's hope retirement is not a thing of the past.