How to deal with a retirement catastrophe - - MSN Money

How to deal with a retirement catastrophe - - MSN Money   >>>>>>  COSTLY Revival on the SLY Side >>>> 

Aspiring retirees have many decades of retirement life they need to plan for. There are also a wide variety of things that could go wrong with your financial plan, ranging from poor investment returns to high inflation. How your investments will perform and how much the prices of basic goods and services will increase is difficult to predict, and could have a devastating impact on your retirement finances if you guess wrong.

Here are several things you can do to help your portfolio deal with a catastrophe.

You still have human capital

Retirement doesn't have to be forever. If you begin to find it uncomfortable living on your fixed income, you can always find ways to earn some extra spending money. There are a variety of ways to increase your income if the markets don't cooperate and you suddenly find yourself wanting to increase the chances you won't run out of money or to get a little extra breathing room in your budget. Calling yourself retired while still earning income is an increasingly popular route to take.

Will I ever be able to retire?

Tap wealth outside of your portfolio

Being completely debt-free, including owning a paid-off home, is a worthy goal for retirement. That means you'll always be able to downsize your house if you ever need more money to spend in retirement. A move can boost your finances in two ways: You get to invest the additional home equity and will have fewer ongoing expenses with a smaller place. Just watch out for the transaction costs of selling your home, finding a new place and moving.

Social Security will be there for you   >>>>>>