Everyone knows that the first step to building a retirement nest egg is to make the most of your 401(k) (if you have access to one) by either maxing out your contribution or at least contributing enough to get any employer match. But Grant Cardone isn’t everyone. The self-made millionaire and author of the new book Be Obsessed or be Average is aggressively making the case that people should forget about 401(k) plans. What is Cardone’s main objection to 401(k)s that causes him to state that he “would never, ever invest money” in one? Why does he declare that “you can’t save your way to millionaire status”, and what does he believe people should focus on instead of saving? CLICK HERE to find out.
Senior citizens are leaving millennials in the dust – at least when it comes to the returns on their portfolios. Today’s article highlights data from TD Ameritrade which shows that, while “there is a high overlap between the top 10 holdings of the millennial generation, Generation X, baby boomers and senior citizens…there’s also enough divergence that the gains of seniors this year are nearly double that of millennials.” To read more about the top 10 holdings of each generation – including which two stocks are only top holdings for millennials (and which have contributed to the poor performance of this group) and which three stocks are top holdings for senior citizens and don’t appear in the other generations, CLICK HERE.
Zero. That is where investment advisory firm Research Affiliates places the chances of a typical balanced fund of 60% stocks and 40% bonds earning 5% or more in the next 10 years. Given that many retirement calculators use a default annualized long-term expected return of 6% or higher, the author of today’s article cautions that people saving for retirement based on these figures are “going to have a massive shortfall.” What does this mean for those investing for retirement? Why does Research Affiliates state that the key to higher returns is taking on what it calls “maverick risk”? And what is the firm’s 10-year return projection for other mainstream investments such as target-date funds? CLICK HERE to find out.