A one-page summary for the article single space ...

2/25/2013 WSJ Article Presentation

“How to Get to Retirement? Practice!” by Carolyn T. Geer. Wall Street Journal Online, 16 Feb 2013.

Available from: http://libproxy.uww.edu:4064/abicomplete/docview/1288136823/13C599D12B87D8D9E72/17?accountid=14791

The article I chose to share with you all this week comes from Carolyn T. Geer. She begins this article discussing humbling statistics about the working population and the percentage of people whose current retirement funds are insufficient. Carolyn also includes statistics about changes in optimism from groups of different age ranges regarding how long they plan on working and how many people at certain ages are looking for work.

In the article, Carolyn has retirees broken down into three different categories:

· Cliff Divers – Those who work until they turn sixty-two and retire

· Worker Bees – Those who delay retirement by working longer

· Retirees in Training – Those who start retiring in their sixties

While the “norm” used to be that people would work until age sixty-two and retire, due to extenuating circumstances in the economy this is no longer an option. Carolyn lists out the reasons for this, which varies from falling home values, loss of jobs, depleted savings, and low interest rates. She also brings to attention that companies offering guaranteed pensions and retiree healthcare are quickly dwindling and are few and far between anymore.

She finishes her article by offering an example of a sixty-two year old couple who make $100,000 per year and currently sit on a retirement fund of $500,000. She projects their retirement income and the value of their retirement fund at age seventy given all three styles of retiree. I found this part to be the most interesting. It opened my eyes on how I will prepare and schedule my retirement when the time comes. I was always under the assumption that by the time I turn sixty-two, I’d give my employer my walking papers and head into retirement. But when Carolyn mentions the other two examples it changed my view point.

After reading through the three different scenarios, I feel like my best option for what I want to do with my retirement and how I value my retirement savings and career I might turn into a retiree in training rather than a cliff diver. I definitely don’t think there is a wrong type of retiree from those listed above. It all depends on how you view your golden years. If you have plans to spend those years with grandkids, traveling, etc. then perhaps cliff diving would be your best option. If you love your job to the point where your career is a part of you, then being a worker bee is your best option. I found myself to be in between each of these personalities, which is why I found the retiree in training to be my best option.

This is important because part of our personal financial planning involves how and when we begin using those retirement savings we accumulate throughout our careers and work. When you retire and start using your retirement funds can change how much your net worth is and how much you have to spend toward your last years. That said, what type of retiree will all of you become when you reach that age?

Citation

Geer, Carolyn T. "How to Get to Retirement? Practice!" Wall Street Journal. N.p., 16 Feb. 2013. Web. 23 Feb. 2013. <http://online.wsj.com/article/SB10001424127887324880504578297851957393868.html>.