You’ve probably heard of dollar-cost averaging (investing a fixed amount of money at regular intervals over a long period of time to minimize the impact of volatility), but what about “dollar-cost ravaging”? The strategist interviewed in today’s article sees dollar-cost ravaging as a problem that can cause a lot of damage to the portfolios of retirees – especially in the early years of retirement. What is dollar-cost ravaging – and what can retirees do to help avoid it? CLICK HERE.
Interval funds. Non-traded real estate investment trusts. Private placements. In the hunt for higher yields, superior total returns and diversification, the author of today’s article notes that retirees “are venturing into some murky waters” – and cautions that “Investors considering a foray into less-liquid, more-complex holdings need to scrutinize these investments’ fees, withdrawal restrictions, valuations, volatility and other risks.” For her “field guide to this “wilder side of retirement investing”, CLICK HERE.
The author of today’s article likens them to an “elite Navy SEALs team of retirement savers”: those with $1 million or more in their 401(k). And after membership in this elite group decreased in the final months of last year as volatility in the stock market took its toll, the number of 401(k) millionaires ticked back up in the first quarter of this year. So what does it take to become a 401(k) millionaire? The author lays it out, noting that “even if you never join this elite group, the boot camp-like discipline its members practice can still leave you in better shape for retirement.” For more, CLICK HERE.
“I think there should be a big difference between a retiree portfolio and a retirement portfolio,” argues the author of today’s article, noting that, while a retirement portfolio (held during the pre-retirement accumulation phase) should focus on growth first and foremost, a retiree portfolio (held in retirement) requires a shift in focus to income generation and lower volatility. He proceeds to highlight what he believes are the Top 10 stocks for a core retiree portfolio today. For these ten stocks, CLICK HERE.
Today’s article outlines a mutual fund portfolio for aggressive retirement savers – i.e. investors who are still many years away from retirement (or who are closer to retirement but already have their in-retirement income needs covered). As the author notes, these individuals can “reasonably hold more in potentially more volatile subasset classes, such as small-cap stocks and foreign stocks and bonds… With less concern for short-term portfolio gyrations, they can benefit from the extra diversification and potentially higher returns that these subasset classes can provide.” For more on the Aggressive Retirement Saver portfolio, CLICK HERE.
Exchange-traded funds are becoming an increasingly popular vehicle for accumulating assets for retirement. But what should be done with ETFs (which carry a certain degree of risk) as one moves into retirement (where risk aversion is the name of the game)? The author of today’s article notes that “your first instinct may be to edge away from volatility, but there’s an argument to be made for retaining ETFs in your portfolio.” What are some strong reasons for staying invested in ETFs beyond retirement – and what types of ETFs may be best for retirees? CLICK HERE to read more.
If there’s one word that aptly describes stock prices so far this year, that word is volatility. And, as today’s article points out, “ those saving for and those living in retirement are becoming increasingly fearful of putting their life savings at risk in markets that fall and rise as they have this year.” But is this fear warranted? The author outlines the findings of a study showing that, while stock market volatility has increased when measured on a daily basis, “when measured using monthly increments, there has been no discernable change in return volatility.” So, how should retirees and soon-to-be-retirees change their thinking and behavior when it comes to risk – and what do aspirin and golf swings have to do with it? CLICK HERE to find out.