An Uncertain Economy & Your Retirement Money

Many of you are in the red zone right before retirement, or have already retired. No doubt your number one fear is no more money to retire. They are part of a very large and growing demographic force: 35 million over 65 years, 50 million drawing Social Security and 78 million baby boomers now 62 to rotate. This means the future demand for everything that will be increased by the "retirement" is set, and "retirement prices" soar dramatically. Many of you may have accumulated a,Take into account nest egg in retirement a pension, an occupational pension push and / or provide other savings and investments for retirement. Where you should always tell your retirement money?

If you are keeping up with economic and financial developments, here's what you: Subprime lending meltdown can be seen, that has destroyed homes and is now spilling into car debt and credit cards, very volatile stock and bond markets, a weak dollar fueling price increases for oil and other commodities;avoid increased unemployment and rising inflation, retail sales, consumer confidence and creating new jobs in steep decline, drastic interest rate cuts by the Federal Reserve to a recession to support a money giveaway stimulus package from Washington to the lagging economy, widespread talk of recession and stagflation. All these add up to difficult economic times that have you check to see where you should have your retirement money.

You said that the stock market is the best long-term,But "long term" means something different in retirement. Has not the dot.com stock market meltdown in 2000-2002 to avoid sending many retirees back to work and that others before retirement? Are not the current inflation-adjusted stock market indexes below their recent highs? Regardless, the loud voices of Wall Street and investment companies now advise you to buy items at low prices. The markets are headed higher, or is their advice self-serving? Who can forecast the economy or theStock market?

When the stock market craters, as in 2000-02 and 1973-74, and you lose a part of your retirement money, as you replace it? There is no second chance, I encourage you to think carefully before committing your money. When you said that you will do only good in the longer term (generally referred to ten years), make sure that you wait so long for a market rebound. Also, remember that a recovery is not safe!

What about places like fixed rateGovernment bonds, bank CDs and money market accounts? It is absolutely safe when is your greatest fear, to survive your money. Since the current fixed rates that are lower than inflation, you will lose purchasing power with these decisions. The potential loss of purchasing power will only add to defending the risk to your money. What about real estate, collectibles and non-market investments? These are not only risky, but are generally illiquid. Before your pensionMoney, ask yourself this question: "How should I start with the worst outcome?"

It is a place, the savings a "chance" to one above the market average return, without the risk of loss, if instead of offering the legislature. It is guaranteed by some of the world's oldest, strongest and largest financial companies. The yield is determined by stock / bond market indexes with the owners share in the upside potential, but downside risks to avoid losses. The worst case outcome is a guaranteed positiveReturn. The earned interest income until actually withdrawn and there is no mandatory age where the money is used needs to be moved. They can also provide a guaranteed income that can be run stand, turned up and stored. What's more, it offers penalty free partial liquidity for emergencies and avoids probate court if the owner names a beneficiary. It may, for a small or a large quantity, and sometimes more money can be added later be opened. There is no law thatlimits the amount of money that can be put into it. It is really a safe place to keep retirement money.

It is on Wall Street and bankers arrived, because they compete with their products. The financial press do not like biased either - mainly because they are not informed, or simply wrong. I'm talking about fixed index-linked pensions, which are offered by insurance companies are: the same companies who are living at home, health, economy and other valuable assets to insure. Theworst case outcome is a positive, albeit small, rate of return if held to maturity, but it is an opportunity, much better. Fixed indexed annuities are not for everyone, but you need to consider them as one of the options for your safe retirement money. Where are you keep your retirement money in uncertain and difficult economic climate? If in risky places, is now a good time to review your options.

Shelby J. Smith, Ph.D.

February 2008