Snuffing Out FIRE Myths

2019-08-08 07_48_50-Blue number notebook _ HD photo by Volkan Olmez (@volkanolmez) on UnsplashThe FIRE (Financial Independence/Retire Early) movement ignites feelings of skepticism in many. And “skepticism” might be putting it mildly. As the author of today’s article observes, “it seems that some just can’t help hating on FIRE. They claim few can save the amounts of money needed to retire on time, let alone early. They complain about the return assumptions used in early retirement calculations. And they proclaim that a FIRE lifestyle is just plain boring.” For FIRE skeptics and critics, he proceeds to identify – and attempts to dispel – some of the most pernicious myths surrounding the movement. For more, CLICK HERE.

Read More

What Is “Resulting” – And Why Is It Dangerous To Your Personal Finances?

2019-08-05 21_11_30-Book, text, diary and grey _ HD photo by NORTHFOLK (@northfolk) on UnsplashIf someone saves nothing for retirement, enjoys their hard-earned money during their working years, and then unexpectedly inherits a windfall at age 60, was not saving a good decision? Conversely, if someone saves diligently for retirement, lives frugally during their working years, and then dies suddenly from a heart attack at age 60, was saving a bad decision? This type of thinking, the author of today’s article explains, reflects the concept of “resulting” – and he warns that “In personal finance and investing, resulting is dangerous.” For more on resulting and the danger it poses, CLICK HERE.

Read More

“Easier Than You Expect”: How An Ordinary Person With A Modest Salary Can Become A 401(k) Millionaire

2019-07-14 15_32_48-Bench, human, person and people _ HD photo by Ihor Malytskyi (@ihor_malytskyi) oThirty-four percent of workers who have calculated how much they need to save for retirement concluded their magic retirement number is $1 million – and the author of today’s article has some encouraging words for those striving to amass $1 million for retirement on modest salaries: “building your nest egg to that size can be easier than you expect…All you have to do is follow some simple steps.” For more on what characterizes ordinary people with typical paychecks who become 401(k) millionaires, CLICK HERE.

Read More

The Financial Downside Of A Longer Life – And One Way To Plug A Potential Retirement Savings Gap

2019-07-07 22_09_02-Love Your Life Clipboard Decor · Free Stock PhotoThe fastest-growing demographic in the developed world is people over the age of 100 – a positive development for those desiring a long life but a challenging one when it comes to funding a retirement that could last 20 to 30 years or longer. With the average 65 year old American estimated to only have enough savings to fund about 10 years of retirement (and similar shortfalls in other advanced countries), a recent report from the World Economic Forum warns of a several hundred trillion dollar global retirement savings shortfall by 2050 – and has a suggestion for those who want to avoid facing a retirement savings gap. CLICK HERE.

Read More

The Better Payout: Annuity Or Lump Sum?

2019-07-05 19_23_33-Check out more of my travels at http_... _ HD photo by Simon Migaj (@simonmigaj)If you’re one of the fortunate Americans with a pension, you are faced with a critical question: are you better off receiving it as a lump sum payment or as an annuity? In attempting to answer this question, the author of today’s article runs some numbers to illustrate the costs and benefits of each payout method at different points of life. For more – including what the author highlights as “The one thing that the Lump Sum offers that the Annuity doesn’t” and the most important question to consider when making the lump sum vs. annuity determination – CLICK HERE.

Read More

How Lottery Money Can Help Fund Your Retirement (But Not In The Way You Think)

2019-06-30 18_06_23-Documentary work for the UK National ... _ HD photo by dylan nolte (@dylan_nolteNearly 40% of U.S. consumers (and nearly 60% of millennials) see winning the lottery as a reasonable way to fund retirement, leading the author of today’s article to scoff that “You might as well bet on the tooth fairy paying off your credit card balance every month.” However, he also outlines how Americans’ lotto habit can actually help fund their golden years – just not in the way you think. For more, CLICK HERE.

Read More

De-Mything Your Retirement Accounts

2019-06-25 21_26_03-May 2018 _ HD photo by Charles 🇵🇭 (@charlesdeluvio) on Unsplash“Sell in May and go away”. “The January effect”. The “Santa Claus rally”. “Financial hurricane season”. When it comes to whether these seasonal investing adages work, the author of today’s article argues that they work “just often enough to sustain their myths” – and just often enough to negatively impact your retirement savings if you make investment decisions based on them. For more, CLICK HERE.

Read More

The Unavoidable Retirement Inflation Bet

2019-06-22 19_28_58-Swing by the lake at sunset _ HD photo by Jon Eckert (@joneckert) on Unsplash“Never overlook the pernicious and toxic impact of inflation over periods as long as retirement,” warns the author of today’s article. He outlines why inflation over the next several decades could actually be significantly higher than currently assumed – and how, if that proves to be the case, it would make inflation-indexed annuities (or real annuities), generally considered very expensive, more valuable. For more – including why the author concludes that “you can’t avoid making an implicit bet on inflation no matter what you do” – CLICK HERE.

Read More

How To “Win With Small Steps” – And Boost Your Retirement Savings By $800,000 Or More

2019-06-16 09_34_09-Man Walking on Gray Stairs · Free Stock PhotoIf you’re one of the (too) many Americans that have too little – or nothing at all – in the way of retirement savings, a simple strategy that could boost your savings by $800,000 (and possibly even more) sounds like something worth having a look at – and that’s exactly what the author of today’s article outlines. And while getting the maximum benefit from this strategy requires having many years until retirement, it can still make a significant difference for those close to retirement. For more on this “win with small steps” strategy, CLICK HERE.

Read More

New Thinking On – And Innovative Ideas For – Retirement

2019-06-08 20_18_26-On my eames _ HD photo by Nikita Kachanovsky (@nkachanovskyyy) on UnsplashRobots and a smart fridge keeping you from having to go into a nursing home. Some new (and simple) math for retirement saving. New alternatives to purchasing long-term care insurance. The retirement community of the future. There are among what may be the best new ideas in retirement as, thanks to increasing longevity and the changing nature of work, traditional “institutions, financial instruments and even our vocabulary no longer seem adequate to cope with the challenges of retirement.” For more on these retirement innovations, CLICK HERE.

Read More