Bust through retirement roadblocks

There are plenty of obstacles along the route to retirement. These three couples found strategic ways to get around theirs.

2 of 3
BACKNEXT
Roadblock: Loss of income
Roadblock: Loss of income
Laura Liebeck and William Smith, 53 and 59, live with their two children in upstate New York. She is a freelance writer; he is a human resources trainer.
Name: Laura Liebeck and William Smith
Location: Wappingers Falls, N.Y.
Nest egg: $95,000
$190,000

PROBLEM: Smith was laid off from an HR director position in 2007, and Liebeck, who's self-employed, lost half her income in the recession.

Smith found a new job, but their income is still down 40%. Scrambling to pay bills, they can't afford to save. "We'd love retirement to be a possibility," Liebeck says, "but I just don't see it."

SOLUTION: The couple should refinance their 15-year, 5.25% mortgage, $29,000 HELOC, and a loan for their daughter's college into a 30-year loan, says Montrose, N.Y., financial adviser Maureen Whelan.

This will save $1,000 a month, which they can stash for retirement. Doing that, they'll have $475,000 by the time Smith is 67, Whelan says. Plus, they'll have enough home equity to sell and buy a smaller house with cash.

NEXT: Roadblock: A mortgage

Last updated September 29 2010: 10:55 AM ET
7 secrets to a richer retirement Hidden forces affect your long-term planning. Here's how you can use them to your advantage. More
I retired in paradise - France!From the South of France to Southern Colorado, here's where readers are spending their golden years. More
Best Places to Retire Your post-work years are a time to improve your golf game, take up a new hobby, or just enjoy a well-deserved break. In these great college towns, you can expand your intellectual horizons too. More
  • Find Homes for sale
    Real estate and homes for sale on Trulia

  • Property Type
  • Find a home in:
  • New York | Atlanta | Chicago | Los Angeles
  • Washington D.C | Houston | Philadelphia | More options
Special Offer
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.