.. and if not now, will your retirement plan be going into the red.  According to Jonathan Chevreau, Most Boomers’ retirement plans ‘going nowhere’. 

He is featuring the concepts that financial planner Jim Otar lays out in his forthcoming book, Unveiling the Retirement Myth.   In his opinion, most Baby Boomers have not saved enough to retire comfortably and should plan to remain in the workforce longer.

Otar describes three “zones” of retirement preparedness.

• Green: good to go
• Orange: (or as Otar calls it the grey zone) where extreme caution is appropriate
• Red: where retirement plans are completely inadequate

His views might be described as depressing but reflects the dual reality that investments have not been performing well and that people are living longer.  His advice is that you should plan for the worst because unfortunately that may be what happens.

He has particular concern for those who are in the grey zone who may or  may not make it, depending on how lucky they are and the timing of their retirement.  For him, when you are within five years of retirement you are in the dreaded Retirement Risk Zone.  This is a dangerous period when investment returns may determine success or failure of one’s plans. Retiring into a vicious bear market may torpedo a retirement, while retiring into a bull market is more fortuitous.

Otar’s website has much more to offer on retirement planning.  His 500-page book will be available in the fall, but an unprintable “green” version is available for $3.99.  It probably should be required reading, particularly for those who are in that Retirement Risk Zone.

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