Americans could require savings of anywhere from $666,000 to $2 million to retire, according to a recently released analysis. The key factor underlying this wide range? The state in which one chooses to retire, with the $666,000 figure representing the amount potentially needed to retire in Mississippi (the cheapest state to retire in) based on the estimated average annual expenditure of a typical retired person outside of Social Security checks, and the $2 million figure representing the same amount for Hawaii (the most expensive state to retire in). What about the state you plan to retire in? CLICK HERE.
“It may be nice to look back at the gains of the last year, several years or decade, but it’s the look out into 2020 and beyond that will matter the most for any investor who is not yet in retirement,” notes the author of today’s article after reviewing the strong stock market gains of 2019. So can those gains continue? In order to assess this, he provides “a review and preview of issues impacting 2019 and looking into 2020”, examining the risks and opportunities involved in the stock market in general as well as in specific companies. For more, CLICK HERE.
“Don’t let retirement stop you from earning money,” advises the author of today’s article, who proceeds to outline some of the best investments for retirees who want to see their retirement savings grow – and ideally generate some dividend income. For what she sees as the best investments in this regard – including what makes REITs right for retirees – CLICK HERE.
While some argue it’s not enough – and others argue it’s needlessly high – the figure of $1 million is frequently cited as the amount to strive for when it comes to retirement savings. And with the average 401(k) and IRA accounts having balances of around $100,000, today’s article lays out scenarios to get from this starting point to $1 million in retirement savings, whether you have 30 years, 20 years, or just 10 years until retirement. For more, CLICK HERE.
When it comes to how to approach investing in retirement (where retirees face several different kinds of risk, including the risk of running out of money due to insufficient portfolio growth and “sequence of returns” risk), the author of today’s article notes that “you need to balance the risk of too little growth with the risk of too much equity exposure at the wrong time.” So how much stock is the right amount of stock to own in retirement? While there’s no magic number, the author offers some suggestions and strategies to consider. For more, CLICK HERE.
If there was a way you could increase your retirement balance by tens of thousands of dollars in a relatively short period of time with small amounts of additional savings, would you do it? Probably. And fortunately, as today’s article outlines, there is a way to do just that: catch-up contributions. To illustrate just how much of a difference even small catch-up contributions can make on retirement balances, the author outlines three scenarios, one with no catch-up contributions, one with modest catch-up contributions and one with maximum catch-up contributions. For more – including what the author sees as the “bonus beauty of catch-up contributions” – CLICK HERE.
It may be a nice problem to have as a retiree, but it’s still a problem: what do you do with your required minimum distributions (RMDs) from your retirement accounts – which, as their name indicates, are required – if you don’t need the money for living expenses? Today’s article outlines a number of strategies, from QCDs to QLACs, to make the most of unnecessary (but required) RMDs, or decrease the amount of your RMDs. For more, CLICK HERE.
With their own distinct risk and reward characteristics, foreign government bonds can be a useful addition to a diversified portfolio. But do they make sense for retirees now at a time when approximately 25% of the foreign bond market trades with negative yields? Surprisingly, they might — under the right circumstances. This is due to what the author of today’s article describes as “a peculiar quirk of the foreign currency market”. For more on why retirees might actually want to consider negative-yielding foreign government bonds, CLICK HERE.
Does building a portfolio worth $1 million – and capable of generating at least $30,000 in annual dividend income – sound like a goal that’s completely out of reach, or like an achievable goal worth pursuing? The author of today’s article argues that the difference between those who respond negatively to this idea and those who respond positively to it is that individuals in the latter group “understand the simple mechanics behind achieving financial independence, and [are] using the tools within their disposal to get there.” What are these “simple wealth-building tools” within everyone’s disposal? CLICK HERE.
Socially Responsible Investing (SRI) and Environmental, Social and Corporate Governance (ESG) have been gaining popularity as investment approaches, but are ESG/SRI funds good for retirees and soon-to-be-retirees? The author of today’s article believes that “The ensuing debate over SRI and ESG investing is potentially an existential one for retirees and soon-to-be retirees”, given the question as to whether these approaches lead to diminished – or superior – returns. What does the research have to say about the suitability of ESG/SRI funds for retirees? CLICK HERE.