When it comes to how to approach investing in retirement (where retirees face several different kinds of risk, including the risk of running out of money due to insufficient portfolio growth and “sequence of returns” risk), the author of today’s article notes that “you need to balance the risk of too little growth with the risk of too much equity exposure at the wrong time.” So how much stock is the right amount of stock to own in retirement? While there’s no magic number, the author offers some suggestions and strategies to consider. For more, CLICK HERE.
If you’re retired (or approaching retirement), what’s your investment risk level? The author of today’s article notes that “Retirees will have a combination of different types of risk levels. The question to ask is what type of investment weightings one should have in each based on their risk profile.” As such, after outlining four retirement investment risk levels (zero, minimal, moderate and higher risk), he looks at the risk/reward metrics of different types of retirement portfolios (income based, balanced, and growth). For more, CLICK HERE.
When it comes to assessing risk, the author of today’s article argues that “most people don’t really understand what their true risks are.” He proceeds to identify what he believes is the greatest risk most retirees face – one that is not getting the attention from retired (and retiring) baby boomers that it warrants. The risk in question is associated with longevity – and is an internal risk rather than an external market risk. What is this risk – and how can retirees protect themselves from it? CLICK HERE.
When it comes to accumulating that $1 million figure often cited as the recommended amount for a retirement nest egg, the author of today’s article states there are two choices: “Either we can wait nearly half a century…or we can become millionaires faster if we can get a better return.” He proceeds to outline a basket of five funds which – with a 12.8% average annual return – can generate $1 million much faster. To find out what these five funds are – and why this higher return does not necessarily mean higher risk – CLICK HERE.
While alternative investments have the potential to both reduce a portfolio’s risk and boost its returns, the key word here, as today’s article emphasizes, is can: “If done poorly, alternative investments can just as easily take a wrecking ball to a portfolio and destroy years’ worth of gains.” Specifically, the author outlines the real-life example of the Dallas Police & Fire Pension System (DPFP) which, “after making a series of questionable investments” in alternative assets, ended up bankrupt. To read more about what happened to the DPFP and the lessons this cautionary tale holds about alternative investments – as well as for the four conditions the author recommends be in place when it comes to alternative investments – CLICK HERE.
Risk and retirement don’t go together. As such, given the difficult times (to put it mildly) that the energy sector has experienced over the last couple of years, energy stocks might not seem like goods bets for a retirement portfolio. However, the author of today’s article argues that “those planning (or even in) retirement might be doing themselves a disservice by avoiding energy stocks right now”, and highlights seven energy stocks that he states “you can count on to get you through your golden years.” To see what these seven energy stocks are, and for an analysis of each, CLICK HERE.