The popular ‘70% rule’ suggests that retirees will need to replace 70% of their pre-retirement income in order to fund their retirement. The author of today’s article, however, outlines several critical reasons why that formula is likely no longer an acceptable guideline for retirees – and why, today, “it’s not inconceivable that, for some retirees, their income replacement need could…
How can you earn $100,000 in retirement and only pay an effective tax rate of less than 3%? The author of today’s article outlines how, noting that “When it comes to your income, the government doesn’t tax every dollar equally. In fact, some dollars don’t get taxed at all. If you know the rules and are able to structure your…
Retirees face two possible worries, depending on how the market performs during their retirement: they could generate above-average returns and risk having underspent in retirement, or there’s the bigger worry: they could generate below-average returns and risk running out of money. In regards to the latter risk, today’s article outlines two research studies that provide retirees with techniques to reduce…
After an extended period of near record-low volatility, the market has seen a number of marked declines in recent weeks. Market declines can be terrifying – especially for those just starting retirement. As the author of today’s article notes, “retirement success is influenced by the returns that an investor earns when their portfolio is largest (presumably right at retirement). Therefore,…
With REITs being hammered by rising interest rates, the author of today’s article sought out REIT ETFs that attempt to mitigate the effect of rising rates – and found that no such funds currently exist. So, he went about building his own REIT ETF “that in theory responds better to interest rates, lowers volatility and eliminates ultra high yield companies…
Much of the market volatility of late has been the result of concerns over inflation creeping up – and the prospect of the Federal Reserve continuing to raise interest rates in response. The author of today’s article looks at what rising rates mean for your money, depending on the positioning of your portfolio in terms of bonds and stocks. Will…
“I think there should be a big difference between a retiree portfolio and a retirement portfolio,” argues the author of today’s article, noting that, while a retirement portfolio (held during the pre-retirement accumulation phase) should focus on growth first and foremost, a retiree portfolio (held in retirement) requires a shift in focus to income generation and lower volatility. He proceeds…
If you have a 401(k) you are probably invested in gun stocks – and in the wake of the Parkland, Florida school shooting and the ensuing debate over gun control, some 401(k) participants are looking to take a stand by divesting from such stocks. Today’s article outlines some considerations for individual investors before making such a move, including what options…
In considering how the new tax law affects your finances, the author of today’s article advises not to neglect its potential impact on your life insurance, noting that the “Tax Cuts and Jobs Act made significant changes that impact the use of life insurance as an estate protection vehicle and modified the tax ramifications of selling a life insurance policy…
“Basically, retirees, whether they and their advisors realize it or not, are staring four problems squarely in the face: historically high stock valuations, low bond yields, increased longevity, and increasingly expensive health care,” states the author of today’s article in regards to the four problems that one financial advisor is calling “the four horsemen of the retirement apocalypse.” He proceeds…