Michelle Singletary
Appearances
Today, Explained
Retire? In this economy?!
So this happens a lot. People want, they ask you a question and they really have already reined up their mind. They want you to co-sign on a bad situation. Listen, good advice is good advice no matter what. And people want a microwave answer to a problem that need to be baked in the oven. And so you can't microwave your way away from situations like we're going right now. You just can't.
Today, Explained
Retire? In this economy?!
We know by history, that's how we look at things. You know, the market eventually returns, historically. Could it change in the future? Sure it can. But we have decades and decades of data that show that when we go into an economic downturn, we come out. It's in everybody's interest that that happens. And you have to feel what you need to feel.
Today, Explained
Retire? In this economy?!
I will not tell you not to panic when the market goes down. I will not tell you that because it is human to be mad and angry and upset and scared. Be all of those. Just don't make decisions in that moment.
Today, Explained
Retire? In this economy?!
Are you a baby boomer? Yeah. I mean, like many people, I'm stressed to the max. You know, I've got a couple of years or so before I was thinking, OK, maybe I will retire. So I still have about three or four years before I have that serious conversation with myself. My husband, however, is retired and has been since 2023. So we're looking at his retirement account.
Today, Explained
Retire? In this economy?!
We're looking at my retirement account. He's not as stressed as I am. Because he's always the glasses half full kind of person. I'm not only is the glass half empty, it's like it needs another glass with some water. So I'm very, you know, very concerned because you don't know when the end is near, right? And that's the issue with retirement planning.
Today, Explained
Retire? In this economy?!
I mean, if we knew when we are going to pass away, if we knew how much health care would we need, if we knew what the housing market would do, we'd be all calm. But it's the unknown. And so I am punching a lot of pillows and crying and screaming and doing a little cussing, but trying to not let the fear grow. dictate moves, and that's the key.
Today, Explained
Retire? In this economy?!
Historically, the markets do return eventually. People come back. The underlying part of America, the economy, is still strong. So it's the fear is how long will it take? And if you have to draw down on your retirement funds, that is what is disconcerting because the balance is lower. And so you are pulling it out at a time where you're definitely going to lock in recent losses.
Today, Explained
Retire? In this economy?!
Then that means there'll be less left to grow even when the market returns. When you are retired and drawing on that, that is the fear that you'll have less. And you'll have less at a time when you need more, like for healthcare.
Today, Explained
Retire? In this economy?!
Well, it's understandable that you're concerned about your parents and also lots of parents. You know, you don't necessarily want to reveal everything, especially if you're feeling bad that you don't have enough money. But I think this is a good opportunity to have open conversations.
Today, Explained
Retire? In this economy?!
Just, you know, like the next time you say, hey, you know, I'd love to talk to you about this because I'm a little worried. You know, I'm saving for retirement and this is what's concerning me. And then you say, how about you? What you don't want to do is like, do you have any money? What's going on? You don't want to come at them in a more adversarial way.
Today, Explained
Retire? In this economy?!
Or as I said, you don't want to come out like you're now the parent. You should see each other as companions and accountability partners and come at them saying, I want to help you if you're concerned because I'm concerned. And so you make it more like you're going to be working at this together.
Today, Explained
Retire? In this economy?!
Because if you find it that they are or they were not ready, that you have to be sure that you have secured your finances so that if you have to step up to help, there are some resources there to help them.
Today, Explained
Retire? In this economy?!
I think right now in this moment, cash is king. I would be stockpiling cash in a high-yield savings account In case you lose your job, in case the economy really does go into a recession, if it gets worse than it is now. I don't want to panic people, although it's perfectly fine if you're scared because that's just human nature. But I will say the prudent thing right now is to say, don't panic.
Today, Explained
Retire? In this economy?!
go into any kind of debt or use a lot of cash that you might need if you lose your job. Now, my husband and I are not in that situation, but we did pull back on a major home improvement project that we were going to do just to see how things shake out. That's the kind of conversation you should be having with yourself. But if you're not on a budget right now, you need to get on a budget yesterday.
Today, Explained
Retire? In this economy?!
Yeah, the first thing I would say is don't beat yourself up. You know, you are where you are and accept that, but do something about it. So if you are getting close to retirement, are you about that or a time where you think, then you've got to make some hard decisions. Are you ready to retire? You might say, I wanted to retire at 62. I'm going to retire no matter what.
Today, Explained
Retire? In this economy?!
Well, you can't retire at 62. You don't have enough. Many people work into their late 60s and 70s and 80s. So if that's you, that might be what you have to do. And or you look at your housing situation because aside from some of your other bills, housing is the biggest part of your budget. So you might have to say, you know what?
Today, Explained
Retire? In this economy?!
Those young adults that was asking me about my money, maybe I have to move in with them or they move in with me. So you got to look at the big ticket items and then you make decisions by that. So let's say you're near retirement, but you can't work anymore. You're not healthy. Then you look at collecting Social Security a little earlier.
Today, Explained
Retire? In this economy?!
Are there resources available for people who don't have as much saved? There's two places I really recommend people to go. First of all, it's AARP. They have a whole section on their website for retiring, retiring in place, long-term care information, how to do your estate planning. And then also your local aging office.
Today, Explained
Retire? In this economy?!
It has a tremendous amount of resources for those who may not have enough, who have housing insecurity or food insecurity. And then hopefully you're connected to some community group, whether it's through your faith or some other group. Get connected in your community because there are some resources that can help you, but you won't know if you're not connected.