The good news? American workers’ confidence in their ability to retire is growing. The bad news? As today’s article observes, “the same forces that are fueling retirement confidence have the potential to work against new retirees in the years ahead–especially higher stock-market valuations.” While retirees have no control over the type of market environment that will prevail over their early retirement years, there are some tactics they can employ to increase the sustainability of their portfolios should they end up retiring at a terrible time. For more, CLICK HERE.
Retirees have been told that, especially given the increasing number of years spent in retirement, they need to maintain a sizable position in equities. It turns out, however, that maintaining a healthy equity allocation in retirement may not be as beneficial for retirees as believed: The author of today’s article analyzed a number of different retirement funding scenarios and came to the conclusion that the benefit to retirees of increasing their equity allocation is actually very modest. For more, CLICK HERE.
Yet another research report has found that a majority of baby boomers do not feel prepared for retirement – and today’s article suggests that one critical factor underlying the position that these boomers find themselves in is a lack of investment in stocks, with the author noting that “The ownership of the vast majority of equity returns in the hands of a small percentage of Americans in part explains why so many boomers are not feeling the recovery.” In addition to increasing their stake in stocks, what else can Americans do to boost their sense of retirement security? CLICK HERE.
The author of today’s article acknowledges that – if such a strategy existed – it would represent “the Holy Grail of retirement investing”: a strategy that would appreciate regardless of market conditions. And one fund – the Permanent Portfolio Fund – purports to do just that. So is this fund something that retirees and those nearing retirement should consider? The author looks at the fund’s past performance relative to other investments – and whether its future performance is likely to be like its past. CLICK HERE.
When it comes to withholding taxes in retirement, the author of today’s article advises that you want to withhold just the right amount: over-withhold and you miss out on earned interest; under-withhold and you risk getting hit with a penalty tax by the IRS. However, despite the importance of getting your withholding as close as possible to your actual tax liability, the author notes that “Many upcoming retirees aren’t quite sure how taxes in retirement are calculated.” As such, they outline some sample calculations showing how to calculate your tax withholding in retirement. CLICK HERE.
Can you afford to lose 30% (or more) of your retirement savings in the event of a market crash? If your answer is no, the author of today’s article – who believes a recession is coming within the next year – urges you to add gold to your portfolio, pointing out that, while “stocks and bonds have been in a major uptrend for 9 years and 20+ years respectively, and so are overdue for a correction… [gold] peaked in 2011 at $1,900 and has only recovered part of its loss so far.” But what gold investment may be best? CLICK HERE.
A disturbingly large number of Americans are underprepared – “massively underprepared”, as the author of today’s article puts it – when it comes to their retirement savings. What can these individuals do about their predicament? The author advises that, while “there is no one-size-fits-all solution for those who are underprepared for retirement…the best approach likely includes some combination of the three strategies outlined here.” For these three strategies for contending with a retirement savings shortfall – including the strategy that “leads to a far better outcome than a doubling of your investment returns” – CLICK HERE.
The expectation in some circles is that emerging markets will be the only category of equities that will generate a significant return above inflation over the next 7 to 10 years. Given this, retirees may be tempted to allocate a sizable chunk of their portfolio to emerging market equities. Today’s article, however, outlines why retirees may be well-served to reconsider such a move, cautioning that “there are more ways to lose money and make substantial errors investing in emerging markets than there are in developed markets.” For more, CLICK HERE.
When it comes to what retirees typically want in their stocks, today’s article sums it up as “dividend stocks that have high yields, consistent payments, and good outlooks for the future.” The author proceeds to highlight three stocks that seem to fit this bill perfectly: a major oil company (which is positioned to continue to do right by its investors even if the oil market slumps), one of the biggest chemical companies in the U.S. (that you’ve probably never heard of), and a master limited partnership (with a decade-long track record of consistent payout increases). For more, CLICK HERE.
It’s National Retirement Planning Week – and in the spirit thereof (and given the market’s wild ride of late), the author of today’s article advises that “you may…want to set aside some time to see where your retirement plans stands and what the likelihood is that you’ll be able to fund a long and satisfying retirement.” He outlines two steps you can take in that regard – and highlights some free online tools that can aid you in your assessment. For more, CLICK HERE.