If you’re still working and saving for retirement, you can take these market drops in stride, since your investments have time to recover. But if you’re within a few years of retirement, or recently retired, this volatility is a reminder to review your portfolio. Big losses, especially in the early years of retirement, could derail your finances if you haven’t planned for them.
Keep Working If You Can
If you aren’t sure you’ll be financially prepared for retirement, consider staying at your job a bit longer. Those extra years of income can help you build a cash cushion, as well as postpone Social Security claiming, which can boost your benefit; more on that below.
Granted, working longer can be a challenge. But it will help to keep up your skills by taking advantage of any employer training that is offered, or by developing new skills outside the workplace, says Kerry Hannon, author of “Great Jobs for Everyone 50+.”
If you can’t remain at your current employer full time, plan a transition to a second career after retirement, a process that could take three to five years.
“You need time to do your soul searching and research, and you may need to pick up some training certification,” says Hannon.
To learn about second career possibilities, you can attend industry seminars, as well as take classes at a community college or online. LinkedIn Learning(formerly Lynda.com) offers unlimited classes starting at $24.99 a month, and EdX, Coursera and Udemy offer thousands of classes. For more career tips for older workers, go to the AARP.org/work.
Cick Here To Reading The Full Article: How to Protect Your Retirement Portfolio in a Market Downturn on Consumer Reports.
by Carla Fried