Half a percentage point. That is what one assessment suggests to expect return-wise from a balanced U.S. stock and bond portfolio over the next 10 years (before fees and taxes!). So what would the effects of an era of “persistently low returns” be on retirement strategizing? Today’s article examines the implications for 401(k)s, annuities, Social Security, medical care, alternative investments and more. CLICK HERE.
Earlier this summer, a Barron’s cover story advanced the claim that this is “the worst time to retire since just before the dot-com bubble burst”, pointing to the nearly decade-long stock bull market (and even older bond bull market) – and the “rising market volatility, rising inflation, rising interest rates and an uncertain economic outlook” expected to result – as the reasons why. The author of today’s article, however, has a different take – and argues that soon-to-be retirees who succumb to this thinking are hurting their retirement portfolios. For more, CLICK HERE.
With paltry bond yields on one hand and the risks associated with high-yielding funds and stocks on the other, generating enough income in a low interest rate environment can be challenging for retirees. However, today’s article highlights two “innovative” ETFs that the author sees as offering slightly higher yields while mitigating risks. The first of these two funds seeks out not just high dividends but high sustainable dividends, and the second fund seeks to get extra yield from high-quality large-caps. For more, CLICK HERE.
The author of today’s article argues that the investments in your retirement account are likely not as diversified as they should be. Rather than the traditional approach to diversification (a mix of stocks, bonds and mutual funds), the author advocates “extended diversification”, which “requires a different set of resources than the traditional investment approach.” For more on how you can supercharge your retirement savings through extended diversification – including one particular asset class the author suggests considering – CLICK HERE.
The author of today’s article argues that retirees should be viewing higher interest rates favorably. This, however, is not how many retirees are reacting to higher rates – and the author suggests that this negative reaction “betrays a fundamental misunderstanding about investing in bonds.” What, in the author’s view, are many retirees getting wrong about investing in bonds, specifically when it comes to the importance they place on “getting your money back”? CLICK HERE.
Can you afford to lose 30% (or more) of your retirement savings in the event of a market crash? If your answer is no, the author of today’s article – who believes a recession is coming within the next year – urges you to add gold to your portfolio, pointing out that, while “stocks and bonds have been in a major uptrend for 9 years and 20+ years respectively, and so are overdue for a correction… [gold] peaked in 2011 at $1,900 and has only recovered part of its loss so far.” But what gold investment may be best? CLICK HERE.
Once only an option for the very wealthy, Self-Directed Individual Retirement Accounts (SDIRAs) – where the account holder controls the account’s investments (and those investments can include a wide array of choices beyond just stocks and bonds) – are now entering the mainstream as more people look to alternative assets to help secure their golden years. Could an SDIRA be right for you? Today’s article provides an overview of SDIRAs – including their advantages, their disadvantages – and a critical IRS guideline that any SDIRA holder needs to be aware of. CLICK HERE.
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 you lose money as interest rates rise? And what about the new tax law – shouldn’t that help your investments? For more, CLICK HERE.
“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 to delve into each of these four issues – and identifies some possible strategies for countering them. For more, CLICK HERE.
Today’s article outlines a mutual fund portfolio for aggressive retirement savers – i.e. investors who are still many years away from retirement (or who are closer to retirement but already have their in-retirement income needs covered). As the author notes, these individuals can “reasonably hold more in potentially more volatile subasset classes, such as small-cap stocks and foreign stocks and bonds… With less concern for short-term portfolio gyrations, they can benefit from the extra diversification and potentially higher returns that these subasset classes can provide.” For more on the Aggressive Retirement Saver portfolio, CLICK HERE.