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.
To lump or not to lump? When it comes to how they want to receive their pensions or 401(k)s, many Americans are choosing lump sums over guaranteed monthly installments – and proceeding to deplete that money within 5 ½ years on average, according to one survey. Why are so many people choosing lump sums over annuities, and where is that money quickly disappearing to? And, in the lump sum vs. annuity debate, what “have it both ways” option does the author recommend may be best for many people? CLICK HERE to find out.
When it comes to the assumptions your retirement is riding on, the author of today’s article warns that “abject optimism can be dangerous.” But not only do many retirement planners have overly optimistic expectations about rates of return in the coming years, many are also overly optimistic with their plans to work longer in order to help fund their retirements: more than half of workers expect to work past age 65, but nearly two-thirds of retirees leave the workforce earlier than expected. So what steps can pre-retirees take today to increase their chances of indeed working longer? CLICK HERE to find out.