Golden Living (Chicago Tribune)

Costs are outstripping incomes, putting added pressure on savings and investing. But there are steps to maintaining financial independence into retirement. First, nearing retirement does not mean going super-conservative with portfolios. More conservative than earlier? Yes. Ultraconservative? No. Something else to keep in mind, have enough liquid holdings to cover three to five years’ worth of expenses. A modest mortgage or a hardship withdrawal – in dire circumstances – are alternatives to borrowing money from family or friends. Another step is to try semi-retirement. This involves splurging a little more as retirement age approaches while staying employed. A person who works until age 70, but stops saving in their 60s would retire with almost twice the assets than if he retired at age 62.