Retirees have been told that, especially given the increasing number of years spent in retirement, they need to maintain a sizable position in equities. It turns out, however, that maintaining a healthy equity allocation in retirement may not be as beneficial for retirees as believed: The author of today’s article analyzed a number of different retirement funding scenarios and came to the conclusion that the benefit to retirees of increasing their equity allocation is actually very modest. For more, CLICK HERE.
Whether it’s for family, lifestyle or financial reasons, relocation is a part of retirement for many Americans. However, the author of today’s article cautions that, “Whatever the reason, retirees appear to be making two big mistakes with their homes. They seem to vastly misunderstand the home as an investment decision, and they don’t consider the financing options available to them at all.” Is buying a home a better investment for retirees than stocks? And if retirees do buy a home, what financing option may be better than a conventional mortgage? CLICK HERE.
Yet another research report has found that a majority of baby boomers do not feel prepared for retirement – and today’s article suggests that one critical factor underlying the position that these boomers find themselves in is a lack of investment in stocks, with the author noting that “The ownership of the vast majority of equity returns in the hands of a small percentage of Americans in part explains why so many boomers are not feeling the recovery.” In addition to increasing their stake in stocks, what else can Americans do to boost their sense of retirement security? CLICK HERE.
Among the concerns that weigh the most on retirees and those nearing retirement is health care expenses in retirement. And with various entities coming out with projected health care expense figures for the average couple in retirement – and many of those figures being staggering – it is no wonder. But is this degree of concern warranted? The author of today’s article notes that “it’s important to separate those health care expenses that can be planned and budgeted for, such as premiums, from less planned, out-of-pocket expenses” – and looks at what the health care spending of current retirees actually indicates. For more, 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.
Stocks that pay a monthly dividend can be an attractive option – especially for retirees. As the author of today’s article notes, not only do monthly dividend payers provide income on a schedule that matches up with monthly bills, but monthly payouts can be a sign of a company’s stability and they allow for faster gains if those dividends are reinvested. However, not all monthly dividend payers are solid picks. The author proceeds to highlight four monthly dividend stocks – with yields up to 12% – two of which he believes are attractive buys and two of which are less than ideal. For more, CLICK HERE.
Retirement calculators are a dime a dozen. Which calculators are worth your time and effort and actually provide useful – and actionable – feedback? The author of today’s article recommends checking out one particular retirement calculator, which he assesses to be one of the best of the bunch and which provides you with two assessments, gauging your “chances of a financially comfortable retirement using both optimistic and pessimistic assumptions.” For more on this particular retirement planning tool, CLICK HERE.
While the years right before – and just after – retirement can play an especially critical role in one’s financial security in retirement, the author of today’s article points out that “a number of planning steps and strategies arise in the decade or so before retirement—that is, in one’s 50s usually—that can have a big impact before the start of a retirement transition.” He proceeds to outline a number of such “fourth quarter” planning opportunities, covering issues from cash flow and insurance to portfolio allocation and estate planning. For more, CLICK HERE.
Can a little gold help secure your golden years? The author of today’s article notes that “regardless of the cause, inflation can wipe out seniors and savers buying power very quickly” – and believes that one of the best ways for individuals to protect themselves against inflation is by owning precious metals. But what’s the best way to go about buying and holding gold for this purpose? The author goes to a precious metals analyst for his recommendations on what to buy, what not to buy – and how to store it. CLICK HERE.
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, investors right around retirement are most at risk of stock market declines.” But how much should new retirees actually fear market declines? The author looks at how much new retirees are actually hurt by market declines – and the findings might surprise you. CLICK HERE for more.