For those nearing retirement

tneig

Sadly, some folks nearing retirement miss their windows of opportunity in planning, as depicted in the article. It happens very frequently. They say you should start backing out of high risk 5 years before retirement, to safely protect the money in case the economy or investments go bad. They put all their investment in one vehicle (all eggs in one basket), their business, instead of taking the profits along the way and diversifying.

I'm right there now at almost 59yr old, and one of my solutions is PMs, whether they go low or high, PMs have advantages in that if you're holding them, you have more control. I've got a lot to learn on how to best utilize the PMs during retirement, but glad I have started. But it doesn't matter what you're in, you have to liquidate certain percentages when the market is good, not getting too greedy. Waiting till the last minute to liquidate pms in a low or bad market could be disasterous.

Article Linky

Staircoins

Good article.

Small businesses are notoriously illiquid.

jmski52

The mainstream finance crowd keeps bleating that precious metals are risky investments. Yeah, that's what I used to believe back when I was getting my MBA in Finance. I'm glad that I've always been a coin collector, because if I hadn't been a coin collector, I'd have been slow to recognize what precious metals really are.

Risk is a measure of volatility. Risk has nothing to do with whether or not something will work to protect you. If you manage physical precious metals accumulation (and divestment when the time comes), they function as a savings plan. The key is steady accumulation and steady divestment over time in order to smooth out the market fluctuations.

It's a mistake to try and "make money" by timing the precious metals market, especially if you actually do pay taxes on your gains (and you're a fool to try and avoid that). All this skimming a dollar here & there is way out of proportion to the actual reward. In this economy, "slow money" is smarter than "fast money". Just my opinion.

MsMorrisine

the new normal definitions


retirement home - casket cubicle.

derryb

Here's what worked for me before I retired:

One or two years from retirement determine your retirement income. Start living on that amount and banking the difference. If you can't live on that amount, don't plan on retiring. If you can live on that amount then you will have no transition shock when you do retire. In addition you will have the nest egg you put away before you retired.

cohodk

Control is only good if one knows how to manage it. If you own bought silver at 40 and it goes to 20, what good was this so-called control?

Wingsrule

I like that plan, derryb. Takes all the opinion right out of the equation.

fishcooker

1) In our neighborhood, the system is designed to run you out of money near age 80. "Retirement" to a 59 year old is a completely different universe - perhaps that should be understood before retiring.
2) We've tried to sell some of our business. Standard offers are designed for the buyer to receive 100% payback in 2 years. Good luck retiring on that little cash.
3) Be wise and study taxes on Social Security, IRA, 401k, and pensions etc. There are some stout taxes in some cases and you definitely want to know that in advance. Mother Government sees some people making $30k and taxes them as "rich."