Why you must prepare for your retirement now

Chairman Greenspan, due to retire in January, repeated his warning that the U.S., and other governments need to reduce their budget deficits. Current levels leave us vulnerable to potential global economic shocks. He also warned that the U.S. is promising more than it can deliver for Baby Boomer's retirement.

What It Means:

The government will not be there for your retirement. Even Social Security may be at risk, since the government basically has not assured it will have the funds. Greenspan is stressing that current budget deficits leave the entire world economy vulnerable, which means that the current economic growth may not be sustainable.

Action Steps: 

Look at your retirement nest egg. How much do you have? How much do you need to retire? Do you have a financial planner to help you maintain the discipline needed to help answer these questions, and develop a strategy that you are comfortable with?