American baby boomers in general are not prepared for retirement. Many experts call this a crisis in the making. The crisis is that many of us will have to work into our 70’s to make ends meet, if we are healthy enough to do so. Others may not be that fortunate. Retirement will be forced upon them by health or other circumstances. They will live in relative poverty. It turns out that we are not alone. The crisis is world-wide.
Archives for December 2013
In the past few weeks I have purchased more I-Bonds using cash in savings and bought more TIPS (Treasury Inflation Protected Securities) using assets inside my 401(k) account. I made these moves to (a) reduce risk and (b) increase the amount of future retirement income that is both guaranteed and inflation-protected. I will be continuing this strategy in 2014. Today I made some more year-end changes.
Last week I purchased a $10,000 I Bond, which is the yearly maximum allowed by current law. (This is a “per Social Security number limit.) You can exceed this limit by using your federal income tax refund to buy even more I bonds, but this would require me to over-withhold during the year which I do not want to do. I will make another I-Bond purchase early next year as I ease out of the conventional stock and bond markets.