While fixed income investing tends to be associated with retirees (and, indeed, retired investors are one of three investor profiles that the author of today’s article believes should consider devoting a significant part of their portfolios to fixed income), it’s an investing strategy anyone can benefit from, with the author noting that “The low-risk, predictable nature of this investment can add essential stability relative to the uncertain nature of stocks and commodities.” For more on fixed income investing – including different types of fixed income investments, the benefits (and risks) of fixed income, and the two other investor profiles that, along with retired investors, may want to consider a significant allocation to fixed income – CLICK HERE.
$1 million is the figure commonly cited by financial experts when it comes to how much you need for retirement. In today’s article, however, the author outlines a way in which you can retire on less than half that amount — $405,000 – with just five buys which, in combination, “hand you a 7.4%-yielding portfolio that will pay you reliably for decades.” For more on this “5-buy” portfolio – which uses a “special kind of fund” as its bedrock – CLICK HERE.
How can retirees best ready themselves for a possible recession? Construct a sound financial plan if you don’t already have one, according to the author of today’s article. And if you already have an appropriate financial plan in place, his advice, “in short, is to do nothing.” Why does he recommend doing nothing in the face of a possible recession? Because, as he proceeds to outline, “a recession doesn’t automatically lead to losses in your portfolio”. For more, CLICK HERE.
It’s an important decision with potentially major consequences: how much do you take out of your portfolio each year when you retire. Take out too much and you risk running out of money down the line; take out too little and you are foregoing a better retirement lifestyle and experiences. In today’s article, the author runs some hypothetical numbers illustrating the potential impact of this tradeoff – and outlines some options for dealing with it. For more, CLICK HERE.
When it comes to periods of extended market weakness, the author of today’s article notes that “Retirees…tend to experience [them] differently, and more viscerally, than their still-working counterparts” as they are living off the finite balances of their portfolios. So while those who are still working may be able to ride out – or even take advantage of – market weakness, what are retirees and those nearing retirement to do? The author outlines “some key steps to take in the event of serious market volatility–or better yet in advance of it.” For more, CLICK HERE.
Stress tests aren’t just for banks – they’re useful for retirement plans too! And a comprehensive stress test of your retirement plan involves more than just stress testing your portfolio: the author of today’s article advises that “you should stress test your venue, your retirement and income portfolios, and anticipated leisure pursuits.” For more on carrying out a comprehensive stress test of your retirement plan – including how to test whether your portfolio can survive a market shock and how many times it may be prudent to visit prospective retirement venues – CLICK HERE.
“Social Security is what it is — and it isn’t what it isn’t,” states the author of today’s article who argues that, while Social Security is an asset, it is not a bond – and thus investors are ill-served by considering Social Security part of their retirement portfolio’s bond allocation. What is Social Security, what isn’t Social Security – and how does the author recommend fitting it into an overall retirement portfolio? CLICK HERE.
When it comes to funding his retirement, the author of today’s article intends to do it with the dividend income his equity portfolio generates, noting that “Dividend payments are more stable than share prices and the potential for capital gains, which makes them an ideal source of income for retirement. Historically, US dividend growth has exceeded the rate of inflation. This means that dividend income not only maintains purchasing power, but increases it over time.” As for how to go about creating a portfolio of dividend stocks to live off of in retirement, he lays out his process, which begins with having “the end goal in mind”. For more, CLICK HERE.
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.
How do you keep your retirement from becoming compromised due to a decline in the stock market close to your retirement? This is the question the author of today’s article gave some thought to after his uncle, who is planning on retiring in 2019, lost around 30% of the value of his portfolio in a matter of weeks thanks to the stock market’s recent volatility. For his insights regarding both portfolio allocation and cash flows, CLICK HERE.