Hardly a day goes by without the train wreck formerly known as the U.S. economy getting worse. The stock market seems to be in a perpetual free-fall, financial institutions are buckling everywhere, and the debris of failed economic policies is generating massive layoffs. If you're lucky, you have a job. If you're unlucky, you have a job...but your retirement savings have been nuked. Let's not even talk about everyone else.
Troubling times, to be sure. According to the U.S. Bureau of Labor Statistics, more than 438,000 jobs have evaporated already this year. These extend across a wide swath of industries, from financial services to retail, manufacturing to hi-tech. In this environment, it's important to make good choices. You may find yourself the target of a buyout from your present company. This may sound like the ticket to a dream vacation and the entrepreneurial career you've long fantasized about. But consider the situation carefully before going for the bait. According to Janice Revell, Money Magazine senior writer, "The enticements you'll get to retire early likely won't offset the drawbacks of spending fewer years at the office." She points out that the gap can tally into six or seven figures, depending on your situation. For the full story, check out: http://money.cnn.com/2008/09/05/retirement/take_buyout.moneymag/
But buyouts aren't the only problem. You may be thinking that your retirement is fried. Just today, the Congressional Budget Office estimated that Americans have lost $2 trillion in retirement savings over the last 15 months. It's important to understand that the current stock market collapse isn't permanent. Markets--and the retirement accounts in them--fluctuate. As a result, it's best to avoid the temptation to sell stocks simply on the basis of the current market, make rash career decisions, or toss financial planning out the window and take Social Security early.
There is a theme here. It's not the time to panic. Instead, it is a time for some serious introspection and self-examination. And this can work to your favor. It's important to understand that demand for workers with skills and knowledge remains intact over the long-term. Even while newspapers are trumpeting layoffs, many firms are desperately looking to fill key positions. Knowing your recareering style (chapter 4) serves as a baseline for achieving success in today's workplace. Discovering your ideal career (chapter 5) can help deliver you to a happier and more satisfying future.
Make no mistake, those able to keep their head on straight and make rational decisions are in a far better position to turn today's adversity into triumph. Just try not to read too many headlines!
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