You’ve probably heard of dollar-cost averaging (investing a fixed amount of money at regular intervals over a long period of time to minimize the impact of volatility), but what about “dollar-cost ravaging”? The strategist interviewed in today’s article sees dollar-cost ravaging as a problem that can cause a lot of damage to the portfolios of retirees – especially in the early years of retirement. What is dollar-cost ravaging – and what can retirees do to help avoid it? CLICK HERE.
“Tax-deferred accounts are great until they aren’t – when we have to pay taxes on our withdrawals,” notes the author of today’s article, who highlights an “often-overlooked” reason for married couples to consider making additional, earlier withdrawals from tax-deferred accounts (in addition to more common reasons such as wanting to use accumulated funds while you and your spouse are still young and healthy): “Their taxes will almost certainly increase after the first spouse dies. Think of this as the widow or widower’s tax.” How can married couples adapt their withdrawal strategies to minimize the impact of this tax? CLICK HERE.
How would you like to only have to save half as much as you otherwise would for retirement? The author of today’s article outlines how you can turn that fantasy into a reality with proper fee management, pointing out that “You lose over half a million dollars just from [a] small difference in fees, because small amounts multiplied over 40 years always become big amounts at the end. Everyone loves talking about how compounding interest is key to building wealth, but it cuts both ways. Fees compound, too.” For more, CLICK HERE.
“Over the course of your lifetime — unless you’re making a lot of money or live extremely modestly on a reasonable salary — you’re going to find it hard to simply put away enough money to retire. The money you put away should, ideally, be working for you and growing at a pace (much) faster than inflation,” notes the author of today’s article, who proceeds to provide some “thoughts on how to leverage the power of investing to give yourself the best chance at a great retirement.” For more, CLICK HERE.
A $1 million nest egg may seem like a lot, but when you consider that the average 65-year-old today can expect to live to nearly 85 (i.e. another 20 years), there is still a real risk of a $1 million nest egg expiring before you do. So how long will $1 million last in retirement – and how can you make it last significantly longer than that (15, 20, or even more than 30 years)? CLICK HERE.
It’s “the cornerstone of retirement planning” – yet in a recent study, 92% of the American adults surveyed either demonstrated a lack of understanding of it or couldn’t even define what it was! What is this retirement-planning cornerstone? Fixed-income investing – and one portfolio manager cited in today’s article warns that “The lack of knowledge about fixed-income investing is a problem because it means many Americans are likely missing out on two of its big benefits”. For more, CLICK HERE.
“Because the average retirement length in the country is 18 years, we can project that the typical retiree will need an $828,000 nest egg to pay the bills upon leaving the workforce,” notes the author of today’s article. But if you find that number daunting, he proceeds to outline the major expenses one can expect to encounter in retirement and some tips for keeping them under control. For more – including how much the average retiree spends on each of those major expenses – CLICK HERE.
The difference between running a marathon race and preparing for retirement, the author of today’s article observes, is that “When you cross the finish line in a marathon, you know the race is over. But when you quit the workforce, it’s much harder to figure out whether you’ve successfully reached retirement.” So how can you get a good sense of whether you’re succeeding financially as you enter retirement? He outlines 15 indicators – some money-related, and some not. For more CLICK HERE.
Individuals tend to retire when the market (and their portfolio balances) are up. However, as today’s article observes, “even though people often retire after periods of strong market returns, that, somewhat counterintuitively, tends to reduce their portfolios’ sustainability rather than enhance it.” This is one of the five retirement-planning blind spots that can catch retirees off-guard that the author details. For more on these blind spots to check before “pulling the rip cord” and leaving the working world for retirement, CLICK HERE.
You’ve heard of black swan events (events which are extremely rare and hard to predict but which can have severe consequences), but what about white swan events? As today’s article explains, these events can be just as devastating to financial plans, but, despite the fact that they are more common and foreseeable than black swan events, people spend little time thinking about them. The author proceeds to outline some white swan events that he failed to predict when planning his early retirement, making the first two years of his retirement extremely tumultuous. For more, CLICK HERE.