Retiring Early!

A hot topic at boomer gatherings is when to retire. Looking at the stock market today (July 27, 2007) we may be working a lot longer than we planned on. If you are one of the earlier boomers the retirement age is fast approaching. But what is that age 55, 65, 70? With longevity increasing (I have an aunt that died of natural causes in her 90s). My mom and dad are in their early 80s and both reasonably healthy.

Tips from the experts:

1. Calculate your needs
2. Adjust your portfolio
3. Stay Busy

Calculate your needs - When the experts tell you to calculate your needs what is your target age. If you retire to early the money may run out - if you wait to long you may not get to enjoy the fruits of your labor. With Social Security on the brink of running out of money and health care cost spiraling we may need to depend on our own resources to survive comfortably on our own.

Adjust your portfolio - easier said than done. Most experts say 60% in stocks and 35% in equities. I guess that leaves 5% stuffed under the mattress. If your are able I would suggest putting as much into any any retirement plan you are eligible for. At least put away the maximum amount you are allowed into a personal IRA account.

Stay busy - I am Lucky that in my profession I am off summers. I worked summers when my children were in school but when my daughter graduated (and got a job) I decided to take the summer off. I have employed more women who have the "empty nest syndrome" and have shifted from hospital nursing to teaching. They are a great group of women, energetic and full of life experiences. 2 years ago I started donating time in my daughter-in-laws first grade classroom. It is fun to work with the kids.

Go back to school - my suggestion - This year I have a student who wanted to know if she could keep her cell phone on during class. She was awaiting the birth of her first grandchild. When asked why she came back to college at her age, her reply: "It is something I have always wanted to do." During one of my graduate class a few years ago there was a cluster of us 50+ with one age 59. For those of you who are not academically inclined take an art class, ceramics, or computer class. Learn to BLOG!

The Smart Money Path to Retiring Early:


http://www.smartmoney.com/cover/index.cfm?story=april2007&pgnum=2