According to the Bipartisan Policy Center, there are approximately 25 million orphaned retirement accounts – i.e. accounts left with former employers – in existence today. If one (or more) of these accounts belongs to you, what’s the best way of handling these abandoned funds? Today’s article looks at the pros and cons of three options – keeping the 401(k) with the former employer, rolling it over to an IRA, or rolling it over to a current employer’s plan. To read more, CLICK HERE.
For diligent retirement savers, the author of today’s article doesn’t see investing in large-cap stocks – with their maturity and predictable cash flows – as being a bad plan. However, for the large segment of Americans who are either behind on saving for retirement (or have no retirement savings at all), he points to small-cap stocks as being “the best way to turbocharge their savings.” But doesn’t the greater risk associated with small-cap stocks outweigh the potential for slightly better returns? The author shows how this is not necessarily the case. To read more, CLICK HERE.
Retirement is a time for spending. However, as today’s article highlights, it appears that affluent American retirees are not doing so. Rather, despite having accumulated an unprecedented amount in assets, studies find they are hoarding money. And while some may be doing so for rational reasons (e.g. wanting to leave a sizable inheritance), the primary motivator appears to be an irrational fear of running out of money too soon. Why does it matter if rich retirees are not spending this money – and how can they be trained to spend? CLICK HERE to read more.
Of all the stocks currently listed on the U.S. market, is a simple basket of just five of them all that is needed for a lucrative retirement? Yes… or at least that is the case the author of today’s article makes. But doesn’t holding just five stocks mean that a portfolio would not be sufficiently diversified? To the contrary, the author argues that “you can create a well-diversified portfolio with just five stocks. In fact, you can create a better diversified portfolio than most of your neighbors have with just those five names.” How – and what are the five investments in question? CLICK HERE to find out.
High fees are eroding Americans’ retirement savings to such an extent that one study found that, for some, the deleterious effects of fees actually outweigh the benefits of using a retirement account in the first place. And, to make matters worse, half of Americans don’t even know how much they are paying in fees! Today’s article depicts how even the tiniest change in fees can substantially erode (or boost) returns in retirement accounts. To read more, CLICK HERE.
There was a time when a million dollars would have seemed like a mythical amount of money. Today, however, despite the fact that many retirement savers have arbitrarily set $1 million as the amount they need to amass for a secure retirement, many financial advisors caution that a nest egg of this size could still leave people short in retirement. What considerations lead the author of today’s article to state that “while saving $1 million is a huge milestone and something to be proud of, you more than likely will need more cash than that in retirement”? CLICK HERE to find out.
Will they or won’t they…destroy the stock market? One theory making the rounds in the investment world is that, as a result of a combination of a mass movement from stocks to bonds and taking required minimum distributions, baby boomers will be huge stock sellers in the coming years, with devastating implications for the stock market. But how likely is this? While the author of today’s article acknowledges that this scenario could very well play out, he puts forward “some possible reasons why the boomers won’t destroy the stock market in the coming years as they retire en masse.” To read more, CLICK HERE.
If your vision for your retirement includes starting a business, one financing option is a ROBS – a Rollover as Business Startup, where funds from eligible retirement accounts are rolled over and invested into a new business (or used to buy an existing business). One major advantage of a ROBS? There’s no need to get loan approval. But one critical drawback? Your retirement could be at risk. To read more about ROBS – including additional benefits and possible downsides associated with this option – CLICK HERE.
Talk about a double-edged sword: the very mental habits that are advantageous when it comes to saving for retirement and building a nest egg can be harmful once in retirement and spending down that nest egg. The implication of this reversal, according to the author of today’s article? “It can lead to a much less satisfying retirement – one in which people spend too little money and spend it on the wrong things, as well as take on too much investment risk.” What are these habits – and how can they be conquered when they become harmful? CLICK HERE to read more.
The best piece of advice for those who want to retire early? “Save early and save often”. But beyond the obvious, today’s article highlights advice for those who want to retire early from people who have actually done so. From resisting the herd mentality, to learning to be content with less, to putting your money to work, CLICK HERE for what those aspiring to early retirement can learn from those who have successfully achieved it.