BUSINESS CENTS
Five Ways to Ease Your Retirement Worries
Article by Rob Williams, Managing Director
changes in government policy. If you fall into that category, here are five practical strategies to help ease those concerns and provide greater peace of mind.
1. Make sure your portfolio reflects your current risk capacity
While "risk tolerance" refers to the amount of market volatility you can stomach, "risk capacity" is about determining how much money you'll definitely need over the next one to four years. Think of it as the financial buffer required to cover your short-term expenses without being affected by market and economic swings. Once you know your risk capacity, set aside the appropriate cash and split it into two types of cushions:
* Money you know you'll need in the next year - Consider putting this into high-yield checking or savings accounts, money market funds, or CDs with
There are a lot of cautionary tales in the news these days about how unprepared people are for retirement, painting a rather bleak picture of widespread financial insecurity. But the reality is quite different.
We recently surveyed more than 1,000 Americans and found they actually feel pretty optimistic about their retirement plans. Six in 10 people say they are not concerned about having enough money to live off of in retirement, and most also feel financially prepared. The numbers are even better for people who are already retired or semi-retired. Over 90% say they've saved enough to live comfortably and are confident about their overall financial situation.
None of this means people aren't worried at all. What we found is that most retirement anxiety centers around things beyond people's control, like inflation, market fluctuations, rising health care costs and potential changes