• Question
  • Is there ANY way to maximize or consider doing something differently; I truly don't know if I will

    Asked by a 76 year old woman from North Little Rock, AR on 7/17/2012

    Is there ANY way to maximize or consider doing something differently; I truly don't know if I will make it through retirement.

  • Categories: Retirement Planning, How Much Do I Need?


  • Editorial 


    San Francisco, CA

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  • You are definitely NOT ALONE in your concerns about retirement.

    Thank you for using the NewRetirement Calculator. https://www.newretirement.com/retirement-calculator/default.aspx Good for you for thinking about guaranteeing your income and eliminating risk for your retirement finances.

    Many financial planners highly recommend a lifetime annuity with inflation protection to cover all of your basic expenses. You can estimate the cost of monthly income here:
    --> https://www.newretirement.com/annuity-marketplace.aspx

    With your basic expenses covered, you may be able to take a little more risk and get potentially better returns with any remaining assets.

    Another tactic many investors are taking is to take advantage of new online investment resources. Companies like MarketRiders are utilizing investment strategies developed by Nobel laureates in finance to provide automated investment advice at a relatively low cost. These companies try to maximize investment returns and minimize risk. You can match yourself to one of these asset allocation resources here:
    --> http://www.newretirement.com/asset-allocation-marketplace.aspx

    However, the Center for Retirement Research at Boston College issued report this month indicating that the traditional focus on optimizing asset allocation is not always the best way to improve retirement security. http://crr.bc.edu/working-papers/how-important-is-asset-allocation-to-financial-security-in-retirement/

    The researchers suggest that there are more effective ways to improve your financial profile than worrying about asset allocation. In fact, any one of the following can be a more potent strategy:

    ----> Delay Retirement: There are three key benefits to delaying retirement. You can: 1) Dramatically increase your monthly Social Security benefits for retirement. 2) Contribute more money to your retirement savings accounts. 3) Reduce the period of time in retirement when you are relying on those savings. Seventy four percent of all households who retire at age 62 fall short of having adequate assets for retirement. Delaying retirement to age 67 dramatically reduces this figure to 47 percent.
    ------------------ More about benefits of working: http://www.newretirement.com/Services/Working_In_Retirement.aspx

    -----> Take a Reverse Mortgage: The typical U.S. household approaching retirement has nearly $140,000 in home equity making it the largest asset outside of Social Security. Reverse Mortgages allow those age 62 and older to extract their home equity while remaining in their home.
    ------------------- Estimate your Reverse Mortgage loan amount here: https://www.newretirement.com/Services/Reverse_Mortgage_Calculator.aspx

    -----> Control Spending: There is more than one way to retire with financial security. Reducing your day to day expenses can be more effective than increasing your assets or income. And, if you cut your budget while still working, you can add those savings to your retirement nest egg for even greater security.

  • Login to rate this answer:   Answered on 7/19/2012
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.