Don’t go into retirement having undersaved
August 19th, 2006 | by mbhunter |I couldn’t make up that word if I tried. This Bankrate.com article on Retirement for the Not So Rich gives some advice on surviving retirement when your nest egg looks more like a hummingbird’s than an ostrich’s because you’ve “undersaved.” Among them:
- Part time work. It can be something you love; it doesn’t have to be a nine-to-five.
- Good old-fashioned belt-tightening. Not palatable, but it does work.
- Hold garage sales to sell your stuff. (I’d check on eBay for fair market value before parting with things that appear old.)
- Reverse mortgages. Expensive and equity-draining.
- Relocating and/or downsizing. Probably more sensible than the reverse mortgage, and potentially much cheaper.
- Holding out longer for that Social Security check. This one I’m not so sure about. SS probably won’t be insolvent for baby boomers but there is something to be said for taking the money and running.
- Keeping your Roth IRA funded as long as possible. No minimum withdrawal age. The article says a little more risk is warranted for the potential of higher returns to bridge the funding gap, but I personally wouldn’t go too high.
If you’re quite a bit away from retirement then there’s still time to plan your finances for later. If you’re not then you can start in any case — it won’t hurt. In either case, I recommend Gary North’s Reality Check for straight-shooting advice on financial planning, career, etc. Lately, he’s been answering readers’ questions in his newsletter on Friday. If you ask a good one (by carefully following his instructions) he may answer it for free in his newsletter. His answers are excellent advice, though they could be harsh and a rude awakening. If after getting the newsletter for a couple of weeks you like his answers, then you can go to his website and pay $10 to see the archived ones and ask questions in his members’ forum. (I don’t get a dime for this.)
Maybe then you’ll be one of the “oversaved” few. 
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