The following are excerpts from an article that ran on MSNBC Business, a link to the original article follows. The author is Chris Farrell, Business Week. this goes to show the importance of having a plan B. Those of us in home business realize this and are positioning ourselves to come out way ahead as the economy hits this rough patch:


Why you’ll work through your retirement

Recession is just one factor changing how retirees will live out golden years
by Chris farrell, BusinessWeek

There is a major social and cultural message in the current economic collapse for the future retirees of America: Forget retirement.

That's right. The recession is making clear what we've suspected for a long time. The concept of not working and embracing leisure for the last third of one's life isn't practical for most people.
Put it this way: Survey after survey has shown that a majority of aging baby boomers plan on working in retirement. Well, that plan is coming true.

Financial safety net
...
"The real or incipient collapse of individual households helps to explain the widespread popularity of Social Security," say Haber and Gratton.

Our image of retirement is still shaped by the early decades after World War II. The elderly poverty rate plunged thanks to Social Security. Older Americans gained universal health care coverage with Medicare in 1965. And Corporate America offered workers defined-benefit pension plans based on a salary and years-of-service formula.

It was in these years that retirees developed a distinct lifestyle captured by the mass migration to Sunbelt communities, traveling in RVs and bus tours, spending long mornings on the golf course and other recreational pursuits. The development of modern retirement is a great social achievement of the 20th century.

But in the 21st century, the underlying economics of retirement are changing.

Living longer, working longer
On the positive side, we're living longer. Average life expectancy is now about 78 years, up from 61 years when Social Security became law. We're healthier, too. Disabilities among the elderly are declining, thanks to a combination of healthier lifestyles and medical advances.

A seismic shift in the economy and workplace is making it easier for an aging population to labor longer. An information- and services-dominated economy will ease the transition to longer working lives. Simply put, toiling away on a computer in medical diagnostics or government bureaucracy is far less demanding than manning an auto assembly line or mining for gold. The rise of an economy based on intangibles and longer life expectancy is behind more than a decade's worth of scholarly research, aging conferences and popular press articles trying to redefine retirement. ...

Retirement savings wiped out by crisis
The day of retirement reckoning is here for less happy reasons, too. For the second time in eight years, savers have watched in horror as their 401(k)s, 403(b)s and other retirement savings were hit with sharp declines. This time around, the household wealth destruction is even greater because of the nationwide fall in home prices. For instance, from the last quarter of 2006 through the third quarter of 2008, the real value of homes and household holdings of stocks plummeted by $5.6 trillion, according to a recent report by Hoisington Investment Management Co. in Austin, Texas. It predicts that the wealth loss may exceed $10 trillion when the fourth-quarter figures are calculated

Postponing retirement The solution: work longer.
After all, earning a paycheck in your latter years can make a huge difference in retirement living standards. Pocketing even a slim income often allows retirement portfolios to compound over a longer period of time.

Take this calculation by economist Robert Shackleton of the Congressional Budget Office, which posits a married couple is in their early 60s earning $100,000 pretax a year. They'll need nearly $66,000 a year after taxes to replace 80 percetn of their preretirement income. (The 80 percent is a standard rule of thumb when it comes to making this kind of retirement calculation.) If both retire at age 62, they'll receive more than $25,000 in total Social Security benefits and require a portfolio of at least $891,000 to generate the income they need to live the good life through their normal life expectancy. (The calculation comes from a paper written several years ago, so the Social Security numbers will have changed a bit over the years. Yet the basic calculation remains true.)

But if our couple waits until age 66 to retire, their Social Security benefits go up and the time they need to bank money shrinks, so $552,000 in savings will suffice. Retire at age 70? All they require is a portfolio worth some $263,000. And so on.


Nevertheless, ...(this is clear-) that retirement and work will be woven into a new cloth for many Americans. The challenge for all of us — employees and employers — will be making the best of the situation.

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For the full article go here

How Many Times Do I Need To Say This...
Joseph Demasi

Success is the result of just 2 things:
1) The books you read
2) The people you hang around with.

If you take the average income of the 4 people you hang around with the most, you can rest assured that is approximately what your income will be- give or take. If you want to earn $100k a year- you need to associate with people that are earning over $100k annually. the same if you want to earn over $100k a month.

Geaorge Bush said it best - "You are either with us or against us" - that is the same attitude you need to take with your friends. You want to associate with Big Thinkers - the ones that look at the results not the problems along the way. Thomas Edison tried 10000 times to invent the light bulb and he finally got it right on the 10001 st try.

If your friend does not believe you will be successful - get another friend! You need people on your team close to you. Keep others at a distance so they will not destroy your dream. "Keep your eyes on the prize" - that is a great saying. There will always be struggles - that's life, there is no such thing as a smooth ride, there are bumps along the way.

Here is the real key to success: NEVER QUIT! Decide right now that you are going to do wahtever it takes to be successful, to get what it is you want. Whatever it takes means whatever it takes. Not what is convenient, or what feels good or is easy. Make a decision right now that you are willing to do whatever it takes to live your dreams or you might as well just quit now.

One of my favorite quotes "Don't wish it was easier, wish you were better" and it may take you a little while to get better so you can achieve the life of your dreams, but won't it be well worth it. Picture what you are doing this for, what is the real reason you want what you want. What will it be like when you have achieved it, how will you feel after that has finally happened.

Keep that picture in your mind- you will refer to it often...