Time for a Retirement Check-up

A Wall Street recession can scare anyone, but the terror gets worse as you close in on your retirement. Whatever you do, don't panic!

Today, the stock market looks like a wild roller coaster. The Dow Jones index may gain 10 percent one day, only to fall 15 percent the next. If you're looking at a gold watch in the near future, or have already retired to Boca Raton, it's understandable if these extreme swings make you queasy.

Sit down today and take these three simple steps to make sure that your retirement will be as comfortable as possible, regardless of those random hills and valleys.

Reconsider your investment timeframe

Count up your savings, retirement accounts, stock holdings, and other financial resources. Are you still comfortable with the way you divided those savings into safe, interest-bearing instruments and risky, but rewarding, stocks?

Young people in the workforce can afford to take large risks, but as a near-retiree, you're going to need that cash very soon.  Maybe you haven't touched that IRA account in a few years. It may be time to shift out of a few growth stocks and into dividend-paying blue chips or fixed-income assets.

Don't give up on stocks entirely, though. Your golden years may last for two or three decades, and maybe even longer. You need to stay ahead of inflation to fuel that potentially long stretch of monthly withdrawals.

Adjust your expectations

You may need to make smaller withdrawals than planned, at least for a while. As a corollary to that idea, look over your expenses. Home-brewed coffee could replace those expensive coffee bar concoctions for a while. Choose a cheaper cable TV package. On a more drastic level, maybe you could be happy in a smaller house in a less exclusive community. And public golf courses are an alternative to private ones.

Keeping more money in your account today gives it more time to collect interest, or rise with a recovering stock market. A penny saved often turns into several pennies earned.

Make more money

Consider staying in the workforce a little longer. Some people can push back their retirement date, and others look for part-time jobs to supplement a shrinking investment payout. You might even have a hobby that's worth money to other people. Hand-stitched quilts could fetch a pretty penny, and gardening could turn into a salaried job.

Besides bulking up your Social Security and pension checks, a job like that can help keep you young and busy. A lot of people just aren't cut out for endless tennis retreats, and feel an urge to keep contributing. Why not make some money at the same time?

Consider these strategies today, and make the changes you need. One at a time, they make a difference. Taken together, they can change your life. Selling all your stock isn't the way to go, as long as you've played your retirement cards right.