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How the Recession has changed retirement planning. Expert offers 3 tips for Baby Boomers

(AXcess News) – The economy may be recovering,but some of the changes wrought by the Great Recession may be long-lasting. Anyone planning for retirement,no matter what their age,needs to take those changes into account,says financial advisor Philip Rousseaux,a member of the esteemed Million Dollar Round Table association’s exclusive Top of the Table forum for the world’s most successful financial services professionals.

“People in their 40s and younger have some time to retooltheir plan,but Baby Boomers need to think with more urgency,” says Rousseaux,founder and president of Everest Wealth Management,Inc.,www.everestwm.com.

“A lot of boomers had all of their retirement investments in the stock market and,if they didn’t lose their principal,it will take some time for them to recoup their gains. Others moved their money to short-term savings,like CDs. But with interest rates so low,they’re actually losing money when you factor in inflation.”

Those are the two most common mistakes people make in retirement planning – having everything in either stocks or short-term savings is a bad idea,he says.

“Space your investments so they’ll come due as they’re needed,” Rousseaux says. “Plan some that can be available in the short term,for emergencies,and others that will be available as you age.”

Only 14 percent of Americans are very confident they’ll have the money to live comfortably in retirement,according to a 2012 survey by the Employee Benefit Research Institute.

Here are Rousseaux’s suggestions for ensuring you’re part of that 14 percent.

With pension plans a luxury of the past and Social Security not a guarantee for the future,Rousseaux says whatever your age,it’s important to start planning now for retirement by creating your own private pension.

“The good news is our life expectancy grows every year,” he notes. “It’s up to you to ensure that you have a great quality of life when you decide you no longer want to work.”

About Philip Rousseaux

Philip Rousseaux is the founder and president of Everest Wealth Management and Everest Investment Advisors money management firm. A staunch advocate of objectivity in investment advice,he’s a member of the Million Dollar Round Table,the international association of independent advisors whose members are held to a rigid code of ethics. He is the co-author of “Climbing the Mountain to Financial Success.” Philip received his bachelor’s in economics from Towson University and completed the Wharton School of Business’s Investment Strategies and Portfolio Management Executive Education Program.

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