Financial schemers bilk unfathomable amounts of money from preretirees and retirees all the time. This contributes, in some ways, to hellish retirement situations. Additionally, vast sums were lost by investors due to economic downturns and poorly performing portfolios.

Economic crises force people from gainful employment, oftentimes for lengthy periods. Involuntary "vacations" greatly impact retirement options. Some displaced workers will find replacement jobs; others might not. Retirements funds now lose some of their pizzazz.

On the other hand, millions of retirees, and preretirees, are doing well financially. The economic downturn is affecting them not one iota. Those who work have jobs and sufficient income streams, diversified retirement assets, and they are relatively healthy. Dr. DaNine Fleming, a 34-year-old Medical University of South Carolina administrator, said recently, "Life is so good for me right now."

Workers generally assume their retirement plans will be in order: employed, company-defined or 410(k) retirement programs, equities, untouched savings, and an expected retirement. But financial chaos now exists relative to retirements.

Wrote Marilyn Elias, USA Today columnist: "Fears abound that the battered economy is causing serious damage to the mental health and family lives of therapists." When health care professionals are at risk due to patient illnesses, this is a very hellish and unexpected period relative to finances.

Forbes magazine, in its Dec. 8, 2008, issue, presented its readership a 2009 Investment Guide. There also was an article titled "6 ways to fix your retirement." The thesis of the piece is to work longer, spend less, rent before you buy, examine your stock/bond mix, buy TIPS and fixed annuities, and consider hiring a pro. Great advice.

Being near to or in retirement presents difficulties for individuals and families financially. Here are seven ground-level ways for this to happen:

1. Reach age 62 without a retirement portfolio, including equities and securities to support a retirement lifestyle with about 80 percent of pre-retirement income.

2. Spending habits eclipse revenue streams, making it difficult for annual retirement withdrawals over 10-30 years (about 4 percent annually).

3. Salary frozen, 401(k) match suspended, company health care plan canceled.

4. Mortgage refinanced to pay debt.

5. Job outsourced; subsequent job pays less salary and possibly no benefits.

6. Husband and wife lost jobs; school-age children are in the home; ill parent.

7. Lingering recession, causing retirement portfolio to lose 40 percent of value.

Retirement hell is brutal, and it plays favorites with no one within its reach. Voiced Jack Rose and Michial Smith, Edward Jones financial advisers: "Retirement is no time to stop preparing for retirement." Therefore, fully maximize desirable retirement options.

This means carefully planning job and retirement strategies so that retirement hell is not an option. This hellish place is not a place to be ... now or in time.

Reach T&D Columnist Howard D. Hill, Ph.D., via www.educationconsultant@sc.rr.com

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