Hello All:

This morning I woke up to the Dow Futures being down 556 points - meaning we were in for a really negative ride today; and as I write this the Dow is down 407.86 points. So I thought that a couple of articles about investing in a Bear Market from different investment writers might be appropriate.

A bear market does not mean you must react with fear and pull your money, or stop contributing to your retirement or savings accounts. As scary as it is, right now your dollar is buying you more stock than it would it a good market. When the market, once again, returns to something more orderly, you'll be surprised how quickly those stocks you continued to buy, will inflate, and your retirement account grow. That's the theory, and it can, and has worked.

Below are two articles from two different sources. I hope you find them helpful.

Enjoy the day!
Gloria

(If you have any comments, I'd love to see some more participation in the "comments" section. Thanks.)


How to Invest Wisely In a Bear Market?
The Personal Financier, Posted by Dorian Wales, Wednesday, August 6, 2008

Bear markets present a challenge for any investor with the end never in sight. How do we invest wisely in a bear market?

Stocks are often hailed as the winning financial asset to invest in for the long term. While stocks offer great potential in return they also hold an equal level of risk. Bear markets serve as a good reminder of the risk-return tradeoff.

During the first half of 2008 stock markets worldwide have taken a relatively severe proverbial beating with major indices dropping %15-%25



Still, a bear market is by no means a cause to give up on stock investments. It’s just another natural phase in the life-cycle of stock investments which are invested for the long-term.Amongst my favorite investment methods is an investment technique which enables us to:

Gradually increase our exposure to the stock market.
Invest in a timely fashion which usually suits our monthly savings.
Enjoy stock returns while relatively limiting the risk we take.
Invest in bear markets as well without dwelling on timing the market.

Dollar cost averaging is a well known investment method which perfectly suits bear markets. Most of us are dollar cost averagers investing timely in retirement plans and other long-term savings.

Dollar cost averaging is basically buying a financial asset or a certain portfolio of financial assets in a fixed timely manner regardless of share price. When prices are low dollar cost averaging results in buying more shares of a certain financial asset or portfolio and while prices are high fewer shares are purchased.

With Dollar cost averaging the average “initial” cost of the portfolio is updating either upwards or downwards with each purchase thus diversifying risk over time.


Naturally there’s a price to dollar cost averaging. Since the investment risk is reduced so is the potential return. Had we invested a lump sum instead the portfolio risk would be higher but so would be the potential return.

There is a lot of criticism directed at dollar cost averaging. Academic research has disproven this investment technique as preferable to lump sum investing.

I believe that for a household investor, much like me, who manages to save some money here and there dollar cost averaging helps ease fears of sharp portfolio drops by easing into the stock market when times are rough.


Poor Long Term Performance Pose
a Risk Even To Long Term Investors

The most common hypothesis is that the stock markets will eventually return to growth patterns and will break previous price records. This has yet to be the case with the Nikkei 225 and the S&P500 since the 1990’s and 2000’s respectively.

Dollar cost averaging has helped small investor take part in the stock market while not risking their sole savings, other than retirement.

If we examine the two stock market indices I mentioned we’ll see that since January 2000 the S&P500 has generated a negative return of 11.2% (-11.2%) without inflation! The Nikkei 225 performed much worse over the past two decades with a negative return of 66% (-66%!!), again without inflation, since January 1990.

The S&P500 since 1999:




The Nikkei225 since 1989:



Dollar Cost Averaging Help Reduce The Risk


Let’s examine what would have happened had we started dollar cost averaging in the worst of times for these two indices. Let’s assume a monthly investment of $1,000 up to today. Out two portfolios would look something like this:



Even with the current crisis and with the S&P500 and Nikkei 225 losing approximately 15% since January 2008 the two portfolios significantly outweigh any lump-sum counterpart. The S&P500 portfolio actually manages to yield a positive return.

Remember, we started dollar cost averaging in the worst possible time to begin investing (right before a big crash).

My goal in this post was to suggest what I believe to be a sound, less risky technique to start investing in the stock market, even if it is bearish. I’ve recently started buying a monthly share of the MSCI world index using dollar cost averaging.

Naturally, I encourage each and everyone to regard everything with the appropriate reserve and carefully examine whether a stock investment is right for you. As always, consulting with a professional is recommended.

Related Posts:
Long Term Investments Are Not Risk Free: The Fallacy of Large Numbers and the Past Decade in Us Stock Markets
Diversifying your risk in the stock market
Know your Portfolio - Three Simple Charts Can Make a World of Difference
How to Protect Your Money From Inflation

1. RETIREMENT ACCOUNTS: TWO TRILLION - GONE .................. 2. MARKET SINKS ON BERNANKE ANNOUNCEMENT.............DOW DROPS 900 POINTS IN TWO DAYS

Notes: What's happening? What about Seniors Retirement Accounts?

Thinking about money, security? Maybe it would be good to think about a reverse mortgage - now would be the time. With housing continuing to slide downhill and eating into your equity, and with the FHA HECM loan limit raised, nationwide to $417,000, today, tomorrow or next week wouldn't be too soon to start to analyze your financial position.

If you don't need the money now - you can still qualify for the maximum loan and keep it in the reverse mortgage credit line - which grows at the same annual rate of interest that is charged for your loan. And you won't be paying interest on a lot of money either.

If you think you're going to need to access money in the next few years, there's no reason not to have a free analysis done and look at the costs vs. benefits. There is absolutely no obligation.

Before you move- talk it over with your financial advisor(s) whether they be professional advisers, family members, trusted friends; search out a reputable reverse mortgage bank and don't be afraid to ask questions about the company, the loan officer or the reverse mortgage. And get your mandatory 1 hour counseling done. The certificate is good for 180 days.

My bank is offering the FHA HECM (Home Equity Conversion Loan) Program to $417,000 and proprietary programs for 60 year olds, as well as Jumbo Loans will be available in the next couple of weeks.

If you have questions, please call me at 703-244-8151


SENIORS: PLEASE READ THE SEQUENCE OF EVENTS BELOW AS WELL AS THE TWO POSTED STORIES TO GIVE YOURSELF AN IDEA OF JUST WHERE WE ARE:


It's been real tough for the Feds - especially Ben Bernanke, Chairman of the Federal Reserve Bank, and Henry Paulson, Secretary of the Treasury. Bernanke must have made a few enemies when he let Lehman Brothers sink into their own ocean of bad paper. Of course, when Richard Fuld Jr., chairman and chief executive of Lehman Brothers Holdings Inc was negotiating for some federal help Lehman Bros. continued to squander millions on executive compensation,” according to Mr. Henry Waxman, Chairman of the House Committee on Oversight and Government Reform.

But Bernanke and the Feds were hero's when they dragged Bear-Stern to shore by agreeing to provide up to $30 Billion in non-recourse financing in a sales deal to J. P. Morgan. The $30 Billion was, of course, collateralized by Bear Stearns cesspool of illiquid mortgages and other securities.

Then Bernanke and Henry Paulson, Secretary of the Treasury and President Bush agreed to put life-jackets on Fannie Mae and Freddie Mac at what the Congressional Budget Office says could cost the taxpayers up to $25 Billion. Or, perhaps nothing if the plan to back their toxic loans works out correctly. There are some real doubts on that program working any more smoothly than any other of our current financial storms.

Then came a real surprise as global insurance giant American International Group, (AIG) came with hands out for an $85 Billion lifesaver ring which was immediately granted them. Congress was infuriated since Bernanke, Paulson and the White House didn't bother to inform them of the plan beforehand.

"The American taxpayer should not be asked to unwillingly assume the inordinate risks that financial experts knowingly undertook, particularly when taxpayer exposure is increased by the ad hoc manner in which these bailouts have been engineered," said Alabama Senator Richard Shelby's aide, Jonathan Graffeo.

And finally, along came Bernanke, Paulson and Bush with another great idea. They wanted $700 billion to purchase toxic loans from financial institutions that were clogging up the credit system and damming back the flow of short-term credit that businesses need to operate - even just to meet their payrolls. Not only that, but the whole world financial system would collapse if they didn't get the money in 3-4 days, and put it under Paulson's discretion to dispense without oversight from Congress, the U.S Courts or federal administrative judges.

As though Congress would write a check, turn it over to a non-elected, political appointee whose term was up in four months when administrations will change. Of course, the fact that Paulson used to be CEO of Goldman-Sachs, and the current Goldman-Sachs CEO, Lloyd C. Blankfein, sat in on the meetings with the Feds. didn't have any overtones at all. After two weeks and numerous midnight oil meetings with Congressional, Executive and Wall Street a bill was finally drafted that provided for some oversight and regulation. Probably, most amazing was the fact that Congress stuck around long enough to do this, rather than heading back to their districts and states to fight for their seats this election year.

As you know, it didn't pass the first House vote. More fast and furious meetings, a lot of new hung porkballs to "christmastree" the Bill and it passed the Senate; and finally, with enough pork and pressure, the House gave the bill it's blessing.

And, now, today we find out that someone else is drowning, and Bernanke announces yet another last minute multi billion dollar life-saver: "The Federal Reserve will create a special fund to purchase U.S. commercial paper after the credit crunch threatened to cut off a key source of funding for corporations". "Today's action follows a slide in the commercial-paper market to a three-year low of $1.6 trillion last week as investors fled even companies with few links to the subprime mortgage crisis."

And Wall Street's drubbing continued Tuesday, with a 500-point loss bringing the Dow's two-day slump to nearly 900 points, as the Federal Reserve's plan to loosen credit markets failed to temper investor pessimism.

Gloria
703-244-8151



Retirement Accounts Have Lost $2 Trillion

By JULIE HIRSCHFELD DAVIS, Associated Press Writer

Americans' retirement plans have lost as much as $2 trillion in the past 15 months, Congress' top budget analyst estimated Tuesday. The upheaval that has engulfed the financial industry and sent the stock market plummeting is devastating workers' savings, forcing people to hold off on major purchases and consider delaying their retirement, said Peter Orszag, the head of the Congressional Budget Office.

As Congress investigates the causes and effects of the financial meltdown, the House Education and Labor Committee was hearing from retirement savings and budget analysts on how the housing, credit and other financial troubles have battered pensions and other retirement funds, which are among the most common forms of savings in the United States.

"Unlike Wall Street executives, America's families don't have a golden parachute to fall back on," said Rep. George Miller, D-Calif., the panel chairman. "It's clear that their retirement security may be one of the greatest casualties of this financial crisis."

More than half the people surveyed in an Associated Press-GfK poll taken Sept. 27-30 said they worry they will have to work longer because the value of their retirement savings has declined.

Orszag indicated the fear is well-founded. Public and private pension funds and employees' private retirement savings accounts — like 401(k)'s — have lost some 20 percent overall since mid-2007, he estimated. Private retirement plans may have suffered slightly more because those holdings are more heavily skewed toward stocks, Orszag added.

"Some people will delay their retirement. In particular, those on the verge of retirement may decide they can no longer afford to retire and will continue working," Orszag said.

A new AARP study found that because of the economic downturn, one in five workers 45 and older has stopped putting money into a 401(k), IRA or other retirement savings account during the past year, and nearly one in four has increased the number of hours he works.

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Fed to buy massive amounts of short-term debts

WASHINGTON (AP) - 10-7-2008 The Associated Press

The Federal Reserve announced Tuesday a radical plan to buy massive amounts of short-term debts in a dramatic effort to break through a credit clog that is imperiling the economy.

The Federal Reserve will buy "commercial paper," a short-term financing mechanism that many companies rely on to finance their day-to-day operations, such as purchasing supplies or making payrolls.

The $99.4 billion daily market for this crucial financing, which relies on investors rather than banks, has virtually dried up. That has made it increasingly difficult and expensive for companies to raise money to fund their operations. Commercial paper is a way of borrowing money for short periods, typically ranging from overnight to less than a week.

The unstable situation has left many companies vulnerable. The notion under the plan is for the government to provide a "backstop" that would give companies a new place to get cash, the Fed said. The action makes the Fed a source of credit for nonfinancial businesses in addition to commercial banks and investment firms.

The Fed said it is creating a new entity to buy three-month unsecured and asset-backed commercial paper directly from eligible companies.

"The commercial paper market has been under considerable strain in recent weeks as money market mutual funds and other investors" have become increasingly reluctant to buy commercial paper, especially longer-dated maturities.

The Treasury Department, which worked with the Fed on the program, said the action is "necessary to prevent substantial disruptions to the financial markets and the economy." The Treasury will provide money to the Federal Reserve Bank of New York to support the new program, the Fed said.

If a company's commercial paper is not backed by assets or other forms of security acceptable to the Fed, the company could pay an upfront fee, the central bank said.

The Fed said it hoped its effort would jolt the commercial paper market back to life.

"This facility should encourage investors to once again engage in term lending in the commercial paper market," the Fed said. That should eventually spur financial companies to lend to each other and to their customers, including consumers, the Fed said.

Home Is Where The Nest Egg Is

Dramatic drop in home
values will crimp some home
owners' retirement plans

By Robert Powell, MarketWatch
Last update: 10:07 p.m. EDT Sept. 17, 2008


BOSTON (MarketWatch) -- Home, for millions of Americans, is not only where the heart is. It's increasingly where the retirement account is, too. Yes, home equity, along with IRAs, 401(k)s and Social Security is viewed as one of the most important sources of retirement income to millions of homeowners.

One recent study showed that home equity represents 21% of the typical pre-retiree's net worth, second only to Social Security at 41%. Another study found one in five retirees and pre-retirees plan to tap their home equity to help fund retirement.

Now, however, the recent and unprecedented decline in home prices is forcing many Americans -- especially those who were banking on the inflated value of their home to make up for paltry savings and falling retirement account balances -- to re-evaluate their retirement plans.

To be fair, Americans were told, as home prices rose 60% between 2000 and 2007, not to rely too heavily on their home equity for retirement.

Fidelity's now-defunct Retirement Research Institute, the Securities Industry and Financial Markets Association, and the Center for Retirement Research at Boston College all warned that what goes up usually comes down.

But no one wants to hear "I told you so" now. Instead, they want to know what the decline in their home's value means for them now. Here's what Principal Financial and others think you should consider.

Pay down your mortgage before you retire

Time was when many Americans retired debt free or, if not debt free, certainly without a mortgage. That's no longer the case. The average debt per household increased 45% to $58,700 in 2005, from $40,600 in 1995, with the largest increases occurring among older Americans according to a just-released Principal Financial white paper.

Not surprisingly, that increased debt level is leading to more and more bankruptcies among older Americans. In fact, the rate of bankruptcy filings among those aged 65 and older has more than doubled since 1991, and the average age for filing bankruptcy has increased, according to a recent AARP research report.

To be sure, not every person who retires with a mortgage will declare bankruptcy or eat cat food in retirement. And, to be fair, four in five homeowners in one study said they don't plan to tap the equity in their home as a source of retirement income.

But when push comes to shove and homeowners are faced with the possibility of lowering their standard of living or tapping the equity in their home, it's likely their house will look more and more like a bank account.

Boston College's Center for Retirement Research noted in a recent study that one in three pre-retirees who extracted the equity in their home during the 2000-2007 housing boom and "consumed" all of that money are likely to be worse off in retirement than those who didn't take on more debt to fund a false standard of living.

What's more, retiring with debt leaves little, if any, margin for error. A catastrophic illness or an unexpected home repair while living on a fixed income would leave retirees with few options to raise money, short of selling their home or declaring bankruptcy.

For its part, Principal says those who own long-term care and other types of insurance reduce the risk of uninsured medical expenses and the possibility of selling a house to raise cash.

Get answers

Past performance is no guarantee of future results, but housing will recover at some point.

Trouble is, no one knows when or by how much. According to Principal, the current home price decline came after a 14-year cycle of rising prices -- the longest continuous housing price increase since World War II.

Yes, no one really knows how long it will take for the housing market to recover. Some say it will take four to eight years while others say 12 to 18 months. Regardless of the time, don't bank on the equity in your home to pay for some of your retirement expenses as you did during the housing boom.

Rather than hide under a rock, would-be retirees and retirees need to ask whether and how the decline in their housing wealth affects their retirement plans.

Principal, in its white paper, offers 17 questions financial advisers should ask their clients. You can ask them of yourself in the absence of an adviser.

They include:

Have you estimated how much your house has depreciated within the past two years?
If so, how much has it declined?
How much did housing equity contribute to your retirement plan?
Will this housing price decline affect your planned retirement date?
If so, how many more years do you plan to work?
As a result of this decline, are you postponing any major medical treatment?

Don't forget that a changing marketplace may mean fewer options are available to you. Reverse mortgages became an increasingly popular way for some older Americans to age in place while tapping part of the equity in their homes.

With a reverse mortgage, homeowners who are 62 or older get a loan (typically a line of credit) against the equity in their home. The loan amounts, at least those based on the National Housing Act of 1987, range from $200,000 to $362,000, according to Principal.

But the recent downturn in the housing market will likely reduce the amount of reverse mortgage loans in the future.

(However, the effect of the FHA Modernization Bill, which is part of the overall Housing Rescue Bill, passed this summer, has changed the old county-by-county maximum FHA loans. Now, the new maximum FHA Reverse Mortgage loan of $417,000, will be nationwide.

And, there will be a high-cost area maximum FHA Reverse Mortgage loan up to $625,000. At a minimum the nationwide $417,000 limit was mandated by Congress to go into effect October 1, 2008. The high-cost $625,000 maximum may not be in effect until January 1, 2009. Of course, the more your home has decreased in value, the less equity you will have to tap in obtaining a reverse mortgage; but the higher maximum will be welcome. GB)

More changes ahead?

With changes in the homeowner's health or the death of a spouse, all bets are off. "Declines in an owner's health status, including a nursing home stay or a decrease in mobility, are good predictors of a future house sale," the Principal report stated.

And, if home equity starts to represent a smaller and smaller percentage of a person's net worth, it only stands to reason that any decrease in home prices will result in smaller and smaller bequests.



Robert Powell has been a journalist covering personal finance issues for more than 20 years, writing and editing for publications such as The Wall Street Journal, the Financial Times, and Mutual Fund Market News.
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Phased Retirement: Will It Become the Norm?

Retirement is a strong word and evokes strong emotions. In the young, it brings joy, visions of freedom and pursuing lifetime dreams; but, as that time of life approaches retirement may conjure up anxiety, worry, fear. Why? Money. Will we have enough to maintain a comfortable lifestyle, maintain our health, afford medical expenses, pay for the increasing costs of ordinary needs such as food, gasoline, property taxes, not outlive our retirement nest egg, are some reasons.

So, we look at ways to have the funds to live, and often this includes the decision of when and how to retire. A new retirement path has been emerging for some time: Phased Retirement.

The article below is a great overview of phased retirement - the benefits and obstacles. The studies are several years old, but are still relevant as the issues are still with us, and still need solving. I hope this article will provide some food for thought as to how we will finance our "golden years", and motivate some of us to take steps in the right direction.

Have a great day

Gloria

Older Americans: Retired or Still on the Job?

By: Jacque L. MillerFamily Resource Management Specialist

After declining in the 1970's and 1980's the number of older workers has been increasing steadily.

Fast Facts

Among men aged 55 - 64 who received income from a private pension or retirement savings plan during 1999, about 37 percent were employed either full or part time in March 2000 - an increase of more than four percentage points over the comparable rate in 1994 (Purcell, 2000).

In the past year, as the economy has weakened and unemployment has risen, the labor force participation rate for older workers (age 55 - 64) has jumped 2 percentage points - an increase unprecedented in post-war economic history (Eschtruth & Gemus, 2002).

Ninety five percent of people ages 55 - 64 who are still working plan to get another job after they retire (Kadlec, 2002).

Factor Influencing Older Worker to Stay on the Job

Besides plunging stock portfolios, other factors have contributed to older workers postponement of retirement and convinced other early retirees to rejoin the labor force.

Public policies and private institution changes may be encouraging later retirements. They include:

Elimination of age discrimination rules.

Social security is no longer growing more generous.

Rise in the Social Security normal retirement age.

No incentive to retire at a particular age.

Coverage under company pension plans has shifted from defined benefit
plans to greater usage of defined contribution plans, such as the 401 (k) in
which balances have been shrinking despite record amounts of new investments.

However, for many, money is the object. The decision to keep working is strongly based on financial need (68%) or the desire to build up income (64%) (The Conference Board, 2002).

High Expectations for Retirement

Americans continue to have high expectations for their retirement lifestyle. They are interested in pursuing their unfulfilled dreams, leisure interests, and/or contributing to society through volunteer activities.

The 2003 Retirement Confidence Survey shows:

Only 21% of workers feel very confident about having enough money to live
comfortable in retirement and 45% feel somewhat confident.

31% of worker who plan to retire think they can live comfortably in
retirement on less than 60% of their current income. Many financial experts say
that retirees will need at least 70-80% of their pre-retirement income to live
comfortably in retirement.

61% of workers have not calculated how much money they will need to
save by the time they retire.

Wide spread lack of knowledge and apathy about money management issues are evident in current saving and consumer debt statistics show (Kadlec, 2002):

Nearly half of all households did not save a penny last year

Revolving consumer debt over the past five years has soared to
30%

The median savings for boomers at age 55 are just at $25,000 -
not accounting for debt.

Without more personal savings and larger contributions to
retirement during working years, neither early retirement nor the ability to
maintain a current lifestyle in retirement will be realizable goals for many
Americans.

Phased Retirement an Option

In the traditional view of retirement, a worker moves from fulltime employment to complete withdrawal from the labor force in one step. Given that the labor force growth is slowing and Americans are enjoying longer and healthier lives, efforts to encourage older workers to stay in the labor force could have important benefits for individuals and the nation's economy. (Burtless & Quinn, 2002)

If the average age of retirement declines it will impact the growing national burden of paying for Social Security and Medicare (Williamson & McNamara, 2001). Additional ways need to be found to keep more people in the labor force beyond their mid sixties.

Older workers planning to retire within five years are receptive to remaining with their current employers through part-time or flexible work arrangements (The Conference Board, 2002).

Phased retirement may be an option that could bring balance to the labor market and benefit both workers and employers. Workers gain some of the benefits of early retirement and employers retain the services of valued workers.

A study of 586 firms conducted by the benefits consulting firm of Watson Wyatt Worldwide found that only 16% offered some from of phased retirement to their employees. According to the data collected from the firms offering some form of phased retirement: (Purcell, 2000):

75% said they rehire retire employees on a part time or temporary
basis

42% said they contracted with retired employees after they retire

60% said they allow retirement eligible employees to work fewer days
per week or fewer hours per day

32 % said they allow employees not ready for fully retire to transfer
to another job within the firm

23% said they provide extended leaves of absence; and

19% said they provide job sharing.

Despite an aging work force caused by the graying of the baby boomers, most companies are not actively encouraging their older, more seasoned workers to remain with them (The Conference Board, 2002). There are legitimate barriers and questions as to whether the combination of partial work and partial retirement will work (Wiatrowski, 2001),

Current Federal tax law prohibits in-service distributions form (sic) an employer's retirement plan. A person cannot continue to work and also receive benefits from a retirement plan.

Most defined benefit plans include a formula that bases benefits on earning in the final years to retirement. If an individual entered a phased retirement program, with reduced hours (and commensurate reduced salary), would the lower salary affect the calculation of future retirement benefits?

Do years of service continue to accrue if an employee works part time and
receives a partial pension?

How do years of part-time service affect the calculation of total years
on the job?

Are benefits recalculated after the employee cease work all
together?

The Dialogue Continues

This issue is clearly on the minds of policy makers and there is an ongoing effort to come up with solutions to this multi-faceted problem. Phased retirement is just one of the topics of discussion in the debate over retirement. A continued dialogue is needed among employers and others to proactively address the challenges of a maturing workforce. Future successful retirement programs will need to:

enhance the employment relationship,

promote the development of more effective management tools,

be flexible, understanding the motivators for continuing to work are
diverse, and
maximize the contribution of the older person both within and
outside the workplace.

Web sites that provide additional information regarding research and policy surrounding this issue are:

The Center for Retirement Research at Boston Collegewww.bc.edu/centers/crr

This site provides publications, research, data and links. Internet searches can locate information about retirement decisions quickly with the search feature. "Issues in brief" provides concise, timely analyses of important retirement policy issues by e-mail for those who request it. "Just the Facts" series offers brief explanations of new research findings, interesting data and current policy issues.

Michigan Retirement Research Centerhttp://www.mrrc.isr.umich.edu/

The Michigan Retirement Research Center (MRRC) serves as a national research and education resource, benefiting the public through information directly related to Social Security, pension, and retirement-related policies.

National Center for Policy Analysis [NCPA]http://www.ncpa.org/

This Web site contains news, discussion of issues, and more. The "My Social Security" pages provide a comprehensive look at social security issues. This site has publications, Expert Advice, (pro and con), Quick facts, and links for a comprehensive look at topics related to Social Security.

National Older Worker Career Center [NOWCC]http://www.nowcc.org/

National Older Worker Career Center provides professional, technical, and administrative work opportunities to older workers through the EPA's Senior Environmental Employment (SEE) Program. The "Issues and Perspectives" section includes a helpful online resource library with articles about changing demographics, phased retirement, legal issues, opportunities for older workers and more.

Conclusion

Will older American retire early or still be on the job? To make the best decisions, workers must be aware of their options in order to take responsibility for the choices they make throughout their lives. If Americans choose to spend more years in retirement and enjoy their current living standard, they must plan continually and up their savings. Planning for retirement is more important than ever.

Americans will also need to address the current challenges of low saving rates, high credit indebtness, inadequate financial preparations for retirement, limited financial assets, and lack of understanding of increased retirement needs due to living longer and upward spiraling health care costs.

Another way to overcome some of the financial burden for both individuals and the national economy is phased retirement. Besides freeing up or conserving resources, older individuals themselves may derive social, economic and psychological benefits from continued labor force activity.

Policy makers, employers and other leaders will need to address the challenges of a baby boom generation nearing retirement.

_____________________________________________
References

Burtless, G. & Quinn, J. (December 2002). Is working longer the answer for an aging workforce? Issues Brief No. 11. Washington, DC: Center for Retirement Research at Boston College.

Employee Benefit Research Institute, American Savings Education Council and Mathew Greenwald & Associates. (2003, April 11). Retirement anxieties grow, but overall confidence changed little despite sagging stock market. Retrieved April 15, 2003 from: www.ebri.org/prrel/pr628.pdf

Eschtruth, A. & Gemus, J. (September 2002). Are older workers responding to the bear market? Just the Facts on Retirement Issues. Number 5. Washington, DC: Center for Retirement Research at Boston College.

Kadlec, D. (2002). Everyone back in the labor pool. Time, July, 22 - 31.

Purcell, P. (2000). Older workers: employment and retirement trends. Monthly Labor Review, October, 19-20.

The Conference Board. ( 2002, December 2). Voices of experience: mature workers in the future workforce. (Research Report #1319-02-RR). Retrieved on April 3, 2003 from: www.conferenceboard.org/utilities/pressPrinterFriendly.cfm?press_ID=20
Wiatrowski, W. (2001). Changing retirement age: ups and downs. Monthly Labor Review, April, 1-2.

Williamson, J. & McNamara, T. (2001). Why some workers remain in the labor force beyond the typical age of retirement. (Research Report CRP WP 2001-09). Chestnut Hills, MA.: Center for Retirement Research at Boston College.
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