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.
When it comes to the ultimate size of your retirement nest egg, the author of today’s article notes that “Calculating future savings requires numerous factors, including current age and predicted retirement age, any current assets, how the portfolio is invested and at what rate a person can realistically expect that money to grow.” And it’s this latter factor – the rate of return – that she proceeds to examine. Given that your assumed rate of return can make or break your retirement plan, just what is realistic? For more, CLICK HERE.
Calling it “a transformative science”, the author of today’s article outlines some of the ways in which “you and your employer and plan sponsors can hack your retirement” using the principles of behavioral economics – including how simply visualizing your future (older) self can help you boost your retirement savings and how, when it comes to 401(k) plans, it’s important to avoid “the tyranny of too much choice”. For more, CLICK HERE.
“Let me put it this way: you wouldn’t not take your mortgage interest deduction because… you didn’t feel like it? Or it was hard?” points out the author of today’s article. And yet a surprisingly large number of Americans are not taking advantage of major tax breaks available to them – including what the author refers to as “The one retirement plan that goes completely overlooked”. For more on how to become more tax aggressive, 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.
“Maybe your retirement plan is on track, but that doesn’t mean you can rest easy. We all exist within a society and an economy. Its problems are ours, too, as we may find out when taxes rise to help pay for others to retire,” warns the author of today’s article. He proceeds to examine the state of retirement in the U.S., including how Social Security is not enough for a secure retirement, the disturbing reality regarding Americans’ retirement savings, the “indexing problem” inherent in retirement accounts, and the “double problem” facing Baby Boomers. For more – including some strategies to help counter these concerns – CLICK HERE.
“Save as much as possible as early as possible” is a generally accepted principle of retirement saving – and widely viewed as the most important principle. There are, however, exceptions – and today’s article details how “contributing too much to your 401(k) or similar retirement plan too early in the year may be hazardous to your retirement-savings health” and cause you to lose out on free money. For more – including how proper planning can help you avoid becoming a victim of the “too-much-too-soon trap”, CLICK HERE.
The ultimate success of your retirement plan may depend to a significant degree on moves made – or not made – during the final 12 months before your actual retirement date. Today’s article outlines a number of considerations, as identified by financial experts, for this critical period – considerations pertaining to investments, debts and homes, expenses, taxes and lifestyle. For more, CLICK HERE.
The foundation of any retirement plan is the age at which we plan to retire. Unfortunately, as today’s article highlights, “that foundation isn’t nearly as solid as we think. We often systematically misjudge when we’ll actually retire, and that can wreak havoc on our finances.” What does a new study – which found that roughly half of Americans retire earlier than planned – offer as the best formula for estimating the gap between our planned and actual retirement age – and what does the existence of this gap suggest some investors may need to do in order to hit their retirement targets? CLICK HERE.
“Annuities often get a bad rap,” states the author of today’s article, who acknowledges some of the drawbacks associated with these products. However, he notes that all investments have drawbacks – and that annuities can be “the hedge against the emotion of fear that you will run out of funds before you die.” He proceeds to outline the numerous ways in which annuities – especially fixed annuities – can reduce the risk associated with your retirement plan. For more – including how you can make an annuity do double duty – CLICK HERE.