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May 13, 2008 10:07 am US/Pacific

Maintaining Retirement Plan In Economic Downturns

QUESTION:   What are some things I can do to maintain my retirement plan in the face of the economic downturn?
ANSWER:  What you are asking is common in the face of an economic slowdown. Some suggestions would be to evaluate the supermarkets you are shopping at to determine how prices may compare to prices at places such as Walmart Supercenters, Costco, Winco, etc. Can you make changes in your driving habits, where you carpool where possible. If not, and your car is a gas guzzler, look to replace your car with a used reliable car that dramatically expands your mileage. Only employ this option if you have equity in your existing car, and you downsize into a car that has allows you to reduce your automotive liability. Be careful here, as simply getting a car with a new loan over a longer period of time is not a solution. If you currently have cable, can you reduce your cable package to the limited basic version? If you have a cell phone and a land line, looking at ways to reduce your cell phone package, or doing away all together with your land line. Overall, I would review every purchase you make for potential ways to reduce the costs associated with that purchase. You may take a step back in your standard of living for the time being, but I think you'll be surprised how several small changes can add up.

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Money Matters is provided by:

David Schauer, CFA, MSFA, CFP®
Financial Planner
Hanson McClain
E-mail questions to moneymatters@kovr.com

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