What to Do When Retirement Goes Wrong

From the time we begin out careers in our 20s, we look forward to the day that we can walk away from our job. When that day finally comes, we get to experience the freedom we’ve been yearning for.

But some retirees have discovered after a few months or even years of retirement that it wasn’t the best choice because their financial needs are not being met. It may be that their fixed retirement income is no longer supporting the expenses they must pay, their retirement investment options didn’t work out as planned or the financial crisis hurt their retirement plans.

No matter the reason, some new choices will likely need to be made – and fast.

Getting Back Into the Workforce

If you’ve decided that getting back into the workforce is the best choice for you, you may feel a bit nervous about competing with recent college graduates with plenty of fresh ideas and spunk. But before you try to about-face back into the retirement world, it’s good to keep a few things in mind:

• You have experience they don’t: One significant benefit of being a recent retiree is that you have years of experience that recent college grads don’t. You’ve been in your industry for years and still have wisdom that a company would value.
• Baby Boomers are still in high demand: Because so many Baby Boomers are set to retire in the coming years, companies will have to fill in these gaps in droves. So if you’re thinking about “unretiring,” it’s a good idea to make your attempt now.

Whether you’re looking to go back to work on a full-time or part-time basis, it’s good to know that you could very easily compete with your younger competition as long as you believe in your capabilities and present your age as an asset.

But of course, if you do go back into the workforce, it’s important to make sure that the money you make not only pays current bills but works toward an investment in the future – and hopefully another retirement that you can stick with.

Investment Options after Retirement

If you’ve thought about getting back into the workforce and have realized that it isn’t for you then you may have to look at a retirement investment strategy or two. For instance, if your money looks to be depleting but you still have a stash put away to cover your expenses then it’s good to opt for retirement growth rather than watching your retirement savings diminish.

How can you make your funds grow after retirement? Here are a few options to consider:

• Less risky investments: Taking on investments that almost always guarantee a return, including CDs, money market accounts and some bonds help you to easily grow your money after you’ve retired.
• Collectibles: Another investment that has the opportunity to bring in safe returns is collectibles. Whether you’re collecting comic books, stamps, baseball cards or coins, there is an industry of people looking to pay good money for what they see as valuable. Check it out!
• Gold: Gold has been a surprisingly sound investment over the past few months as prices have reached record highs. However, keep in mind that the time to get in is now because the prices can’t keep rising forever. And once they start dropping, you’re going to lose on your investment.

Hopefully, you are receiving some type of retirement check to offset the money you’ve set aside in your retirement savings. If so, then you may be able to take some of your savings and make decisions to help it grow.

Planning for Retirement the Right Way

The best way to make sure you feel financially secure during retirement is to have a substantial amount of money set aside before leaving your job. If you’re not sure how to get this done, here are some choices you have:

• Maximize your 401(k) account: When you reach the age of 50, you are able to increase your 401(k) contributions. In 2010, the limit is $22,000 and could be taken care of to ramp up your retirement funds.
• Budget and cut back on expenses: Before you ever walk out the door of your employer for good, it’s important to budget your income so that in addition to having money pulled out of your check for retirement, you’re also setting aside your own money and contributing to an IRA or some other retirement fund options.
• Create diverse investment opportunities: When investing in your nest egg, it’s a good idea to diversify as much as possible. This includes opening savings accounts, stocks, bonds, ETFs, mutual funds and more.

Some people have felt discouraged because they lost a lot of their retirement savings after the financial crisis. But there are always ways to rebuild your nest egg, even after a crisis, so keep this in mind as you review your retirement portfolios.

The good news is that a retirement that has gone wrong doesn’t mean that you’re doomed for the remainder of your later years. There are plenty of options to choose from to get yourself on track, so take your time and slowly but surely do what’s best for you.