Today’s article calls it “the nastiest hardest problem in finance”: retirement spending strategies. And unfortunately, despite the complexity inherent in retirement spending strategizing, it is often subject to simplistic rules of thumb, most notably the 4% rule. The author outlines the dangers associated with the 4% rule, how it “can go very badly”, and the implications of this for the FIRE (financial independence, retire early) movement. For more, CLICK HERE.
When it comes to retirement funding strategies, it turns out there may be a hole in the popular bucket approach, making those strategies more likely to fail. That’s the finding of a recent comprehensive study of both bucket and non-bucket strategies. Why are bucket strategies more likely to fail than non-bucket strategies – and which retirement funding strategy did the study find was the best performer, with a 0% failure rate? CLICK HERE.
The author of today’s article advises that “when it comes to selecting investments for each part of your portfolio, you can really skinny things down by focusing on investments that provide a lot of diversification in a single shot.” She proceeds to highlight a number of funds that both retirement accumulators and those who are already in retirement could consider for this purpose – whether they are looking for a single-fund option or looking to employ a building-block approach. For more, CLICK HERE.
When it comes to the top three reasons that retirement withdrawal strategies fail, the author of today’s article sees them as (1) sequence of return risk, (2) sequence of return risk and (3) sequence of return risk. How might sequence of return risk be a greater problem for retirement withdrawal strategies than even low average returns, how can you “get screwed twice” by sequence of return risk if you’re especially unlucky, and what are some ways to alleviate sequence of return risk? CLICK HERE.
“Today, we are at peak FIRE, perhaps similar to peak crypto reached in December 2017. Unfortunately, when you’re at the peak, there’s usually nowhere to go but down,” laments the author of today’s article, who warns that the FIRE (financial independence, retire early) movement “is in for a rude awakening” — and poised to be overtaken by a new retirement movement: DIRE (Delay, Inherit, Retire, Expire). CLICK HERE for more.
How do you calculate how much income you will need in retirement (and how much you need to save for retirement given that figure)? What kind of retirement account is right for you? What makes a good 401(k) plan (and how can you make the most of your 401(k) plan)? What about fees, asset allocation, and retirement income streams? And how can you retire early? Today’s article tackles these questions and more as part of a “comprehensive guide” on saving and investing for retirement. For more, CLICK HERE.
As the House of Representatives prepares to change hands in the new year, both the outgoing Republican chairman of the Ways and Means Committee and the presumed incoming Democratic chairman of the committee are proposing changes to retirement regulations – including changes pertaining to the risk of retirees outliving their savings. For more on these potential changes, how they could benefit retirement savers, and some of the potential issues with them, CLICK HERE.
Are you better off retiring in a bull market or a bear market? For those who have the option of retiring now while the good times are still here or waiting until things go south, this is an especially salient question. In today’s article, the author runs the numbers on retiring during a raging bull market versus retiring in a bear market, and shows why the latter may be better. For more – including some insights on retiring during times of uncertainty when there is neither a bull market nor a bear market – CLICK HERE.
Contributing to tax-deferred retirement accounts is an attractive option for building your nest egg. However, the author of today’s article cautions that “While contributing to your 401(k) account can be beneficial, exceeding the statutory limit could cost you a lot.” In order to ensure that your contributions are all above-board, the author proceeds to outline the rules pertaining to contributing to: a 401(k), more than one 401(k)s, SIMPLE IRAs, Roth 401(k)s, Solo 401(k)s – and more. For more – including an example showing how much an excess deferral can cost you – 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.