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.
Leverage and retirement don’t conventionally go together – but a new exchange-traded fund targeting retirees who require more income than they can get from a typical 60-40 stock-bond portfolio is looking to include a leverage component in an effort to provide investors with superior returns. As today’s article outlines, “this fund takes those vanilla investments, adds a dollop of exposure to racier asset classes that have historically generated higher income, sprinkles in some leverage and, voila, investors get a fund that can support a 7 percent annual distribution rate.” For more, CLICK HERE.
With the average life expectancy in the U.S. approaching 80 years, the long-advised strategy of shifting away from riskier (but higher-returning) assets like stocks and towards safer (but lower-returning) assets like bonds as you near retirement is not without its own risk: the risk of running out of money. The trick to navigating this risk/reward quandary, according to today’s article, is “balancing investing safely with the need for returns that keep up with, or better yet, beat inflation.” How can those approaching retirement go about accomplishing this? CLICK HERE.
There is a cobra that could potentially poison your retirement – and that cobra is bonds. The author of today’s article highlights the so-called cobra effect – how “individuals making decisions to cause one outcome to occur can accidentally cause the opposite” – and explains how this phenomenon can occur with retirees and bonds, increasing the probability that they will run out of money as they age. To read more – including how the author believes bonds can be used effectively – CLICK HERE.