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.
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.
What are the odds that the stock market will crash at some point (or multiple points) during the course of your retirement? Researchers have actually developed a formula for making this determination – and based on that formula, the author of today’s article warns that “the odds of a huge crash are…high enough that you should expect at least one, and perhaps more, during your retirement.” For more – including the number of smaller crashes the formula indicates one should expect over the course of a 30-year retirement and why, despite what many believe, government regulations and safeguards are unlikely to prevent future crashes – CLICK HERE.
Inflation may not seem like much of a concern right now, but the author of today’s article points out that periods in which inflation has been significantly higher than average have typically arrived without any advance warning. Given this, and considering the fact that, as he notes, “even average rates of inflation can take a large toll”, it’s worthwhile to consider the impact inflation could have on your retirement plan. For two categories of spending the author sees as particularly worrisome for retirees going forward, as well as strategies available to protect yourself from inflation in retirement, CLICK HERE.
How do people who save 20% or more of their incomes for retirement – so-called retirement “super savers” – manage to do it? New research provides a big part of the answer, identifying “the single biggest difference between what super savers spent less on, as compared to the rest of us” – something super savers spend just 14% of their incomes on compared to 23% for non-super-savers. What is this critical difference in spending that allows super savers to save so much more for retirement? 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.
“The benefits of owning a Roth IRA are nothing short of amazing,” declares the author of today’s article, pointing in particular to the fact that money in a Roth IRA grows tax-free and is withdrawn tax-free. Of course, taxes are paid on money converted from a regular IRA to a Roth IRA, but, as the author proceeds to outline, with proper planning retirees and soon-to-be retirees can hit the “Roth sweet spot” and get the most bang for their buck from a Roth conversion. For more on this strategy, CLICK HERE.
Of the $25 trillion held in U.S. retirement accounts, less than 2% of that amount is invested in alternative assets – and new research suggests that this low allocation to alternatives may be a mistake on the part of those approaching or in retirement as alternatives can reduce risk and enhance returns, thus helping to ensure that retirees don’t run out of money. For more on the strategic use of alternative assets in retirement portfolios – including how much of their portfolio individuals approaching retirement may want to have allocated to alternatives – CLICK HERE.
While there seems to be a constant stream of news and market developments (and presidential tweets) that those nearing retirement need to keep up with today, the author of today’s article asserts that “to be successful in retirement today requires a much more holistic view of what you are facing and what the investment realities are” – and he proceeds to outline four such financial realities that retirees need to be cognizant of – and address – if they are to enjoy financially secure retirements. For more, CLICK HERE.
Today’s article contains some good news and some bad news for retirees whose portfolios suffer substantial losses (such as the 17% loss incurred by one of the model portfolios from a top-performing newsletter over the first six months of this year). The good news? Even the worst performers are likely to eventually recover their losses. The bad news, however, has to do with how long eventually might be – and what that means for retirees’ standard of living. For more, CLICK HERE.