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.
Given its recent moves, investors have reason to be anxious about the market – and none more so than investors who are at retirement’s doorstep. For those in that group, today’s article outlines a number of strategies to consider, as identified by top financial advisers. First, however, the author advises that “It’s critical that you…draft a retirement-income plan”, noting that “Those who have such a plan don’t worry about market declines. And those who don’t have a plan, worry.” For how to create a retirement-income plan – and for the aforementioned strategies for protecting your retirement portfolio from market volatility – CLICK HERE.
What could be bad about the trend currently underway towards commission-free trading? A lot – especially for retirees. In fact, the author of today’s article describes zero brokerage commissions as “the latest Siren Song to tempt retirees into dangerous behavior.” So what exactly is the concern? It has to do with the effect that zero commissions have on trading frequency – and the pairing of two “toxic behavior patterns in retirement”. For more, CLICK HERE.
Are you trying to play catch up with your retirement savings? Looking to retire early? Whatever position you currently find yourself in relative to retirement, today’s article outlines ten “commandments” that may be worth following in the aim of ultimately achieving a comfortable retirement. For these ten commandments – relating to Social Security, estate plans, taxes, health care, pre-retirement lifestyle and more – CLICK HERE.
While there are some general rules of thumb for retirement income-replacement rates (e.g. 75% to 80% of working income), pinning down your individualized retirement cash flow needs can be difficult. As the author of today’s article notes, “higher-income, higher-saving households may well need just 60% (or even less) of their pre-retirement income during retirement, while lower-earning, lower-saving households may need closer to 90%.” So how can you come up with as realistic a figure as possible for yourself? The author outlines seven steps to take. CLICK HERE.
When it comes to 401(k)s and IRAs, the author of today’s article argues that “Gambling away your retirement funds in a government-sponsored game of chance is a game you have little hope of winning.” Instead, he asserts that if you want to retire for real (and early), the key is attaining financial freedom – which requires focusing on cash flow rather than capital gains. For more – including the opportunity the author sees in a coming depression – CLICK HERE.
Today’s article outlines how an initial investment of $300,000 in six specific funds (from “an obscure corner of the market”) can create a significant, reliable income stream for retirement. Specifically, “this portfolio has a 7.9% yield, meaning our $305,000 initial investment is going to give us $24,000 in annual income—that’s $2,000 per month!” Moreover, these six funds offer growth in addition to income, with impressive annualized returns over the last decade. For more, CLICK HERE.
With the stock market of the world’s second-largest economy – China – having dropped by more than 20%, what does this mean for retirees in the U.S., who often hold significant positions in non-U.S. stocks? The author of today’s article notes that such a divergence between the U.S. stock market and a leading foreign market is increasingly rare – and outlines some important investment implications. Do retirees in the U.S. have reason to worry that U.S. stocks will soon converge with Chinese stocks and enter a bear market? CLICK HERE.
With almost half of retirement savers having their entire account invested in a single target-date fund last year, the author of today’s article acknowledges that “Target-date funds are taking over retirement accounts” – and this may not be a good thing. He proceeds to explain how a combination of issues with target-date funds “could easily add up to 1 percent to 2 percent a year in lower returns, costing retirement savers hundreds of thousands of dollars over the course of a career.” CLICK HERE.
Today’s article describes it as “The single most important retirement strategy” – and how much of an impact it can have on your standard of living in retirement may well surprise you. That strategy, according to a new study? Working a little bit longer – maybe even just an extra few months. For more on the surprisingly large impact working a little longer can have, why this is the case – and what it says about the importance of focusing on what matters most when it comes to retirement planning – CLICK HERE.