What is the more important investment decision when it comes to your retirement portfolio: asset allocation (how much to allocate to various asset classes) or security selection (which specific securities to purchase to fulfill your asset allocation)? For many investors – and retirement planners – the answer has long been the latter (security selection), but a new study suggests that…
“With powerful demographic forces keeping interest rates lower for longer, investors (and financial advisors!) need to adjust their thinking for the future,” declares the author of today’s article, who cites a report from Morgan Stanley warning that, over the next 10 years, returns from a traditional 60/40 portfolio will be close to a century low. So what can investors do…
With longer life expectancies and lower interest rates, among other factors, the traditional 60/40 portfolio “just won’t be able to cut it anymore”, according to some financial experts. Instead, greater allocations to equities will be needed – and dividend stocks will become the new bonds for retirement. One place investors can look for higher yields for their retirement portfolios? Business…
In the current era of low rates, the author of today’s article notes that “Stocks will have to do the heavy lifting of funding your retirement”. But will they be able to do so – or will unexpectedly low returns put you at risk of running out of money during your retirement? The author looks at what the most reliable…
If you’re on track to accumulate the oft-recommended goal of $1 million in retirement savings, there’s some potentially discouraging news: some financial advisers argue that a nest egg of $1 million is no longer sufficient, with one adviser cited in today’s article declaring that “The new rule of thumb is $3 million.” Why is this new $3 million savings target…
Most Americans are not saving sufficiently for retirement. But even those who have been diligent retirement savers during their working years may encounter difficulties when they reach retirement, with the author of today’s article cautioning that many in this financially fortunate group “find it hard to flip the switch from saving to spending.” For his advice on how ardent retirement…
Americans could require savings of anywhere from $666,000 to $2 million to retire, according to a recently released analysis. The key factor underlying this wide range? The state in which one chooses to retire, with the $666,000 figure representing the amount potentially needed to retire in Mississippi (the cheapest state to retire in) based on the estimated average annual expenditure…
The SECURE Act, which went into effect on January 1st, will change the way workers save for retirement, the way retirees spend down their retirement savings, and the way beneficiaries will receive money from inherited retirement accounts. But the various provisions of the SECURE Act aren’t the only ways that saving for retirement will change this year. As today’s article…
While some argue it’s not enough – and others argue it’s needlessly high – the figure of $1 million is frequently cited as the amount to strive for when it comes to retirement savings. And with the average 401(k) and IRA accounts having balances of around $100,000, today’s article lays out scenarios to get from this starting point to $1…
The long-awaited Setting Every Community Up for Retirement Enhancement (SECURE) Act has been passed by Congress and signed by President Trump – and several of its many provisions affecting 401(k)s, IRAs, annuities and more take effect as soon as 2020 begins. So what are the new rules of retirement saving? Today’s article outlines some of the most important provisions of…