The transition from building up savings leading up to retirement to spending down those savings once in retirement can be challenging, both strategically and psychologically – and thus mapping out an in-retirement financial plan is critical, notes the author of today’s article. To aid in this complicated endeavor, she lays out “the key tasks to tackle” when devising such a plan – including deciding whether to annuitize a portion of your portfolio (and, if so, how much), determining your withdrawal sequencing, and coming up with a succession plan for your portfolio. To read more, CLICK HERE.
“The savings decisions you are making today have far more implications than you might be seeing,” warns the author of today’s article, who points out that many people decide to save the maximum allowable in their 401(k)s because “that’s what everyone does.” The problem with following the herd in this regard, according to the author? 401(k)s were not designed to be used in this manner, and “this concentrated savings into tax-deferred programs creates a pool of money so large it can put you at risk of paying more taxes later in life.” To read more, CLICK HERE.
A recent survey of 401(k) participants found that almost 70% believed they would be able to save enough for a financially secure retirement. The problem? Two-thirds of those surveyed believed that returns going forward will be in line with – or higher than – returns in the past, while most analysts expect that returns will be lower – perhaps significantly – than those of the recent past. Given this, the author examines what you can do – and what you shouldn’t do – “to build a nest egg large enough to sustain you throughout retirement if the financial markets deliver significantly lower returns than in the past”. To read more, CLICK HERE.
April is Financial Literacy Month, but the author of today’s article believes that an understanding of five “big picture principles” is even more important when it comes to achieving one’s financial goals (such as having enough money for a secure retirement) than knowledge of specific financial concepts and processes. The first of these big picture principles? While investing is important, “saving is a surer way to wealth than investing.” For the author’s rationale behind this principle – and for the other four principles – CLICK HERE.
Are you willing to give up an hour (actually less than an hour) of your time in the interest of helping to ensure that your retirement savings will be sufficient? If so (and who wouldn’t?), today’s article lays out three easy steps to complete in this regard. Those three steps? Estimate your life expectancy, determine the appropriate equity percentage for your retirement portfolio, and identify high-fee investments in your portfolio to get rid of. And if those steps sound easier said than done, they’re not – the author provides guidance on how to complete each of them. To read more, CLICK HERE.
Exchange-traded funds are becoming an increasingly popular vehicle for accumulating assets for retirement. But what should be done with ETFs (which carry a certain degree of risk) as one moves into retirement (where risk aversion is the name of the game)? The author of today’s article notes that “your first instinct may be to edge away from volatility, but there’s an argument to be made for retaining ETFs in your portfolio.” What are some strong reasons for staying invested in ETFs beyond retirement – and what types of ETFs may be best for retirees? CLICK HERE to read more.
“It’s nothing less than a war they’re waging on retirement – and it’s going to cost you,” cautions the author of today’s article in regards to the shelving of the Department of Labor’s “Best Interest” rule, which aims to protect retirement savers and their nest eggs from shifty agents and unnecessary fees (to the tune of $17 billion) by requiring that all advisers offering investment advice for retirement accounts act in the best interests of their clients. With investors losing an estimated $40 million a day as a result of the practices the rule seeks to prevent, what can you do to protect your money? CLICK HERE for the author’s advice.
“Defined contribution plans like 401(k) accounts are great at helping employees save for retirement, but they provide no guarantee of income as pensions do,” notes the author of today’s article. While private sector pension plans have largely disappeared, the author highlights a pension-style retirement product that offers guaranteed lifetime income, but which only recently has entered the mainstream of retirement planning: longevity income annuities (LIAs). How do LIAs work? Who are they best suited for? What should one look at when considering LIA plans? CLICK HERE to read more.
With 401(k) account balances rising, more employees are wondering how they can get their hands on that money. However, whether it’s from borrowing from their 401(k)s or pulling the money out when they leave jobs, the result is one of the biggest threats to Americans’ retirement savings: leakage. Today’s article notes that, according to one analysis, such leakage “threatens to reduce the wealth in U.S. retirement accounts by about 25% when the lost annual savings are compounded over 30 years.” As such, American companies are taking action to curb this behavior by employees. To read about the steps some are taking, CLICK HERE.
“If you want to have an income-rich retirement, you’ve got to have a diversified basket of dividend stocks that will deliver both capital appreciation and income growth,” states the author of today’s article – and this assertion is backed up by a study that looked at the returns of S&P 500 stocks over a 33-year period. The author proceeds to highlight what he deems to be the seven best stocks when it comes to this winning combination of above-average capital appreciation and income potential. To find out what these seven stocks are, CLICK HERE.