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You Might Be Your Retirement Plan's Worst Enemy

Sunday, May 27, 2012 - 10:04 AM
From the Wall Street Journal
It's a common fear among retirement savers that an event beyond their control will come out of nowhere and wreck a carefully laid financial plan. But many retirees unwittingly make decisions that result in major, self-inflicted damage to their nest eggs.

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Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
Rep Points: 125,708
1. Sunday, May 27, 2012 - 10:16 AM
The lure of the buyout is tempting and leads many people to be optimistic that they can match their previous salary, but that may not be easy, especially if you have been an employee for many years.  Also, many over-50's are finding the hiring market is very difficult.  

pearlbrownpearlbrown1,485 posts since
Nov 2, 2010
Rep Points: 6,454
2. Sunday, May 27, 2012 - 10:30 AM
I just am not crazy about the title of that article.  Much of it is true but many retirees can't be considered the "enemy" of their own future if they are unexpectedly hit with problems they had no idea would occur.  They may need to be there for adult children who have medical problems and lose their jobs etc.  Many things can happen after retirement that are not expected so that is why people need to save "more" than they expect to need if they can. These zero interest rates are really the "enemy" in my opinion, at least in our case.  I just don't like the term "enemy" being used for people who tried to do everything right but just got hit with some of life's unexpected catastrophes.
paoli2paoli21,406 posts since
Aug 10, 2011
Rep Points: 6,150
3. Sunday, May 27, 2012 - 10:47 AM
The unwillingness to accept that 'circumstances will change' seems to be the biggest "enemy" to success in retirement planning. This change in circumstances includes the factor that interest rates could go to near zero and income may be reduced in retirement. Guess what? It happened.
ShorebreakShorebreak2,695 posts since
Apr 6, 2010
Rep Points: 14,611
4. Sunday, May 27, 2012 - 11:35 AM
Shorebreak:  I don't think these people are unwilling to accept when circumstances change.  I just don't like them being made to feel they are the "enemy" due to these circumstances.  They can also take steps to help themselves when things happen like we are doing with the Savers Petition instead of just whinning about the changes.
paoli2paoli21,406 posts since
Aug 10, 2011
Rep Points: 6,150