With it being so often repeated that the key to a secure retirement is to start saving early and put enough into your 401(k) to get your employer’s match, today’s article argues that many investors are overlooking (or underutilizing) another important savings tool – health savings accounts: “According to some advisors, HSAs are also the Holy Grail of savings vehicles because of their rare triple-tax benefit. Contributions to HSAs are made with pretax dollars (in most states), assets grow tax-free, and distributions are tax-free if used to pay for qualified medical expenses or as reimbursement for such expenses.” Can you amass more wealth by contributing to a HSA first before contributing to your 401(k)? CLICK HERE to read more.
Everyone loves surprises – but not when you are a retiree and the surprise is the size of your Social Security check. Today’s article cites a recent survey which found that, for 29 percent of retirees, their benefit ended up being less or much less than expected. Moreover, the survey found that many pre-retirees are simply guessing as to how much they will receive and that their expectations are above the average amount current retirees report actually receiving. The author goes on to outline seven reasons why your benefit might end up being smaller than expected (including the aforementioned reliance on guessing). To find out what these reasons are, CLICK HERE to read more.
Rather than investing in Target, Walmart or Costco, why not invest in the landlords that lease space to these retail giants? How? Through a ‘triple net lease retail real estate investment trust’, which is the subject of today’s article: “Here, a tenant pays all real estate taxes, insurance on the building and maintenance fees to upkeep the property. Landlords love this because it lowers their overhead and variable costs when renting properties. Plus, the highest quality tenants tend to prefer triple-net leases because they want more control over the property and how they use it.” The author highlights three of his favorite triple-net REITs. For an analysis of each, CLICK HERE.
Earlier this month a commission charged with devising a plan to strengthen the retirement security and personal savings of Americans released its report – and today’s article outlines how “a lot of high income earners are going to hate it”. The 146-page report from the Bipartisan Policy Center “includes revamps of everything from 401(k) plans to reverse mortgages to tax credits for encouraging savings.” So what specific proposals are likely to raise the ire of high-income workers? From proposed changes to the tax-deductibility of mortgage interest to increased taxation of Social Security benefits and more, CLICK HERE to find out.
What differentiates a good 401(k) plan from a bad 401(k) plan? Today’s article identifies four parameters that can have a significant impact – to the potential tune of hundreds of thousands of dollars – on your retirement nest egg: low cost, wide diversification, no fads and ‘best in class’ funds. In terms of diversification, how many choices does the author state the best plans have? What constitutes a ‘best in class’ fund? CLICK HERE to read today’s article and find out.
“Companies are willing to concede quite a bit – but people need to know what retirement benefits to ask for and how to ask,” states today’s article, which examines the biggest mistakes people make when it comes to negotiating a retirement package. From approaching negotiations as a battle rather than as “a collaborative conversation”, to focusing on money at the expense of nonmonetary benefits, to believing a company when it says there are no exceptions when it comes to its retirement offers, CLICK HERE to read about all the mistakes that can keep you from getting the right retirement package.
In light of the reality that many Americans are on track to fall short of meeting recommended retirement savings targets, as well as the finding that almost half of working-age households have no money saved in retirement accounts, the author of today’s article believes it is time for many to rethink their beliefs about saving, investing and retirement. As such, the article outlines ‘15 Money Myths That Can Destroy Your Retirement’ and counters them with a dose of (often sobering) reality. Will you really be able to live on significantly less when retired? Do you really have enough saved to cover the costs of long-term care? Do you really have to avoid any risk in your investments right before retirement? CLICK HERE to read more.
Think that the retirement lifestyles of the rich are completely out of reach? You may be wrong! According to today’s article, many high-net-worth people are living more modest retirements than we may envision: “High-wealth retirees may not necessarily be using their money to buy luxury yachts and gold-plated dishware, but their money does buy them something else: freedom.” What can retirees of lesser means learn from wealthy retirees? What retirement dream do advisors say people are often surprised to find is more affordable than they expected? What retirement budget killer ends up costing significantly more than expected? CLICK HERE to read more.
Is the conventional wisdom wrong? Is a 401(k) not really the best way to save for retirement? The author of today’s article makes that case. After outlining the three main reasons typically put forward as to why you should maximize your contributions to your 401(k), he presents three reasons to the contrary. One reason? You are not necessarily in a lower tax bracket in retirement. What are the other two reasons, and what does the author believe you should do instead of maximizing 401(k) contributions? CLICK HERE to find out.
After cohabitating with the financial sector, real estate is moving into its own place later this year – becoming its own sector in the S&P 500 and MSCI equity indexes – and, as today’s article highlights, this move is expected to increase the profile and appeal of real estate investment trusts among investors. Here’s what Barron’s has to say: “Separating real estate from financials will draw attention to REITs’ distinct portfolio dynamics: The trusts are income-oriented and offer higher dividend yields….” The article proceeds to highlight five REITs to consider in advance of this change. To see what these five REITs are, and to read more about what experts expect from this new solo sector, CLICK HERE.