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…
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:…
The transition from building up savings leading up to retirement to spending down those savings once in retirement can be challenging, both strategically and psychologically – and thus mapping out an in-retirement financial plan is critical, notes the author of today’s article. To aid in this complicated endeavor, she lays out “the key tasks to tackle” when devising such a…
“The savings decisions you are making today have far more implications than you might be seeing,” warns the author of today’s article, who points out that many people decide to save the maximum allowable in their 401(k)s because “that’s what everyone does.” The problem with following the herd in this regard, according to the author? 401(k)s were not designed to…
A recent survey of 401(k) participants found that almost 70% believed they would be able to save enough for a financially secure retirement. The problem? Two-thirds of those surveyed believed that returns going forward will be in line with – or higher than – returns in the past, while most analysts expect that returns will be lower – perhaps significantly…
April is Financial Literacy Month, but the author of today’s article believes that an understanding of five “big picture principles” is even more important when it comes to achieving one’s financial goals (such as having enough money for a secure retirement) than knowledge of specific financial concepts and processes. The first of these big picture principles? While investing is important,…
Are you willing to give up an hour (actually less than an hour) of your time in the interest of helping to ensure that your retirement savings will be sufficient? If so (and who wouldn’t?), today’s article lays out three easy steps to complete in this regard. Those three steps? Estimate your life expectancy, determine the appropriate equity percentage for…
Exchange-traded funds are becoming an increasingly popular vehicle for accumulating assets for retirement. But what should be done with ETFs (which carry a certain degree of risk) as one moves into retirement (where risk aversion is the name of the game)? The author of today’s article notes that “your first instinct may be to edge away from volatility, but there’s…
“It’s nothing less than a war they’re waging on retirement – and it’s going to cost you,” cautions the author of today’s article in regards to the shelving of the Department of Labor’s “Best Interest” rule, which aims to protect retirement savers and their nest eggs from shifty agents and unnecessary fees (to the tune of $17 billion) by requiring…
“Defined contribution plans like 401(k) accounts are great at helping employees save for retirement, but they provide no guarantee of income as pensions do,” notes the author of today’s article. While private sector pension plans have largely disappeared, the author highlights a pension-style retirement product that offers guaranteed lifetime income, but which only recently has entered the mainstream of retirement…