How to Hedge 7 Retirement Risks

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solomonjohnson853 of CA 2:41PM May 09, 2012

LIVING LONGER THAN EXPECTED..Hello, live to age 70 1/2 and the IRS forces you to take a minimum distribution every year regardless of the losses you may have incurred because of market conditions. You lose Principal, the required deduction doesn't drop and your nest-egg takes the hut.

Jack chew of FL 10:47PM April 19, 2012

Here is the rub regarding forced retirement. When you turn 62 the cost of healthcare increases dramatically to your employer. So, they come along and offer you "early retirement." They figure they can hire a 30 something, pay them less and have lower health care cost. So they offer you a two year severance package and healthcare for a year.
You know if you don't take it they'll let you go with nothing. So, however begrudgingly, you accept it. Then, nine months later, you receive a notice that your healthcare coverage will end and that COBRA coverage will be $1,800 per MONTH until you begin Medicare in two years. Or you have the option of purchasing your own healthcare insurance. Heaven forbid if you have a preexisting condition!
So here's the real problem. We will need to work longer, especially if you have a 401k that has been raped by the market and since Social Security benefits start later for various age groups, but the employers can afford to have older workers around due to the high cost of healthcare.
It's a no win situation. If we don't get healthcare costs under control, it's not going to matter what your retirement plan is worth as the pinch will be in healthcare payments.

JLM of MD 10:41AM April 18, 2012

I appreciate all you are saying. It is very sensible.
However, I have found that since I was 45 my age prevented me from getting a job and I am currently 62 and in the process of getting forced out because of my age. What I want to know is where does one go to work at this age? I am just as good and much better at work than I was when younger and the young people around me find this totally irrelevant and HR is looking to make room for the new younger one. In any event it is inevitable and I'm trying to figure out where to work...you talk as if there are tons of jobs available. I am perfectly computer literate and would be able to work from home; I've a sterling character and my confidentiality meter is the highest so I could do lots of personal work etc.
I, you, must help us contact those types of jobs that people of my position can reach out and offer our skills/advice.
Do address this problem if and when you find it feasible. I think it is urgent.

Fran of MA 9:28AM April 18, 2012

Forgot one. Your retirement check showing up later than you expected due to the backlog at OPM.

trese of NC 6:21PM April 17, 2012

STUPID ARTICLE: NO valid advice.
JUST KILL YOURSELF WHEN U RUN OUT OF MONEY OR GET TERMINALLY ILL>
DON"T GO TO A NURSING HOME++IT'S LIKE PRE-DEATH EXCEPT YOU'RE STILL HERE!!!

Hannibal Lechter of HI 5:13PM April 17, 2012

That 82% of current retirees left the workforce before the age of 65 is an amazing statistic!. My gut feeling is that ageism at work, especially during downsizing, would be a notable factor. Workers thus need to take this potential event seriously in their planning.

TimO of CO 3:22PM April 09, 2012

The best thing a American can do when they are retiring, is to find a country where you're money is going go far and last.
For me that country is Thailand. They have the warm weather, cheap housing, food, medical costs one tenth that of the US.
http://www.youtube.com/watch?v=j0duOAMyLTw

spytheweb of NV 3:11PM April 09, 2012

The likelihood of needing long-term care if you live to age 80 is enormous ... but the planning must start much earlier. That's especially true if you want long-term care insurance because of the need to health qualify. The American Association for Long-Term Care Insurance publishes 3 great guides at http[://www.aaltci.org/long-term-care-insurance-costs and they can be read free with no sign in.

Jesse Slome of CA 12:44PM April 09, 2012