A column in the New Jersey Star-Ledger says consumers who live within their means and put plenty of money away in savings shouldn't have trouble preparing for an active - and exciting - retirement.
The paper had Michael Pirrello, a certified financial planner at a local provider, analyze the financial portfolio of one reader. The 46-year-old volunteer had set aside significant amounts of money in a variety of accounts, including an IRA, 401(k), mutual funds and a money market account. She lives rent-free with family and does not own a home, freeing her from the significant financial responsibility of homeownership. She hoped her financial planning would allow her to travel frequently well into retirement.
Pirrello said it was possible, especially if she applied the money she would put towards a home into additional retirement accounts with higher possibility of returns. Investing one's money into a diverse number of accounts and protecting one's assets with a life insurance policy is a sure way to strengthen one's retirement plans, Pirrello told the source.
At the same time, even the most carefully-laid plans can be derailed in the event of death or disability. Experts advise consumers protect their assets with a term life insurance policy.