Repairing a Wrecked Retirement (07/11/02) Vol. 56, No. 7 p.22; Martin, Ray

The declining stock market has stripped $678 billion from investor's portfolios, but advisors say Americans can rebuild their nest eggs. Before making any decisions, investors should take stock of where they stand and make a list of all accounts, being sure to list specific investments and their current value; when doing this, investors should pay close attention to accumulations in a particular investment and category. Next, investors should prepare a cash-flow projection, which provides an overview of three years of income and expenses, and also suggests how much the investor can save or what they will need to withdraw from their investments. For people who may be making withdrawals soon, the amount should equal any withdrawals or large expenses this year and for the next three years. This money should be deposited somewhere where it is sure to draw interest and not depreciate in value.

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