This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

How to Handle Being Forced into Retirement

BOSTON ( TheStreet) -- Even those who have been diligently preparing for retirement can be in for a rude awakening if it arrives too soon.

Let's say you plan to retire at 70 and have based your saving and investing on that. Then an illness or layoff pushes you to leave the work force up to a decade sooner. Too old to easily get another job and too young to hit your desired numbers for a 20-to-30 year retirement, it can be a rough time indeed.

Being pushed out of the work force a decade too soon by illness or layoff can be rough indeed.

Don't panic
The first bit of advice from financial advisers is to keep your emotions in check. It is advice intended not just to keep you sane, but to prevent rash, counterproductive moves.

Fear can lead some to rashly react more to immediate obligations than with rationally with future needs. They may, for example, commit what many see as the one of the great sins of retirement planning -- liquidating a 401(k) and just eating the added taxes, withdrawal penalty and lost funds from future compounding returns.

"It is the worst decision you can make, and you only make it if you are truly backed into a corner and there is nothing else you can do," says Ron Courser, president of Ron Courser & Associates in Grand Rapids, Mich.

"There are always options out there. At some point in time, you may find out you are going to live to be 90 and if you consume everything today it is going to be unpleasant. It's kind of like eating the seed corn. The more you consume today the less you are going to have tomorrow," Courser says.

It is even more troubling when grabbing at that money comes as market returns ebb.

"You have chopped it off at its legs when it was low because you needed the money," says Tony Zabiegala, vice president of Strategic Wealth Partners in Seven Hills, Ohio.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $117.81 0.00%
FB $105.45 0.00%
GOOG $750.26 0.00%
TSLA $231.61 0.00%
YHOO $32.94 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs