Strategies for accumulating wealth receive much more attention than strategies for decumulating wealth despite the fact that, as the author of today’s article points out, nowadays the decumulation phase of one’s life can be just as long as the accumulation phase. He also acknowledges problems with safe withdrawal strategies, including the fact that there’s a good chance you’ll end up leaving money on the table when you die. Instead, he states, “If that’s not what you want — if your goal is only to spend as much as you can in your lifetime without running out — my calculations show that there’s a much better way.” For more, CLICK HERE.
The author of today’s article describes it as “the one surefire way to retire rich”: harnessing the power of compounding. Or, to be more specific, harnessing the power of compounding using dividend stocks – and amassing a multi-million dollar nest egg in the process. What does the author outline as some of the best strategies in this regard? For more on harnessing the power of compounding using dividend stocks to grow your wealth – and nest egg – over time, CLICK HERE.
The retirement financing strategy highlighted in today’s article is sometimes referred to as “safety first” – a notion that may be taking on even greater importance for retirement savers in light of recent market gyrations. The strategy in question is the “floor-and-upside” strategy, where “the basic idea…is that a retiree devotes some of her retirement funding assets to building a lifetime stream of income and the remainder to an investment portfolio to provide liquidity and the possibility of increasing wealth over time.” For more on this strategy, CLICK HERE.
The common belief about retirement assets is that they are systematically drawn down by retirees over the course of their retirement. However, it turns out that this may not actually be the case. Today’s article highlights a surprising research finding: most current retirees, across all wealth levels, have been holding onto the bulk of their retirement savings, even 20 years into retirement. What accounts for this “unexpected resiliency of retirement assets” – and is it likely to remain the case for future retirees? CLICK HERE for more.
The importance of diversification in financial planning is constantly emphasized – and generally accepted. However, the author of today’s article notes that “when you look at those who achieve the greatest wealth or have the greatest impact, virtually none of them ever diversify…or at least, not throughout most of their years.” He proceeds to examine how different diversification strategies – represented by redwood trees, bushes and pear trees – can affect one’s wealth (and retirement savings). For more, CLICK HERE.
When it comes to building retirement wealth, the author of today’s article points out that “one of the best strategies is also the simplest: Buy shares in great companies, and hold forever.” “Great”, however, doesn’t necessarily mean flashy and exciting. The author proceeds to highlight three stocks that may be considered rather boring, but which could nonetheless be helpful in building retirement wealth. To find out what these three stocks are – including one that has been beating the likes of Amazon and Apple despite its boring business – CLICK HERE.
April is Financial Literacy Month, but the author of today’s article believes that an understanding of five “big picture principles” is even more important when it comes to achieving one’s financial goals (such as having enough money for a secure retirement) than knowledge of specific financial concepts and processes. The first of these big picture principles? While investing is important, “saving is a surer way to wealth than investing.” For the author’s rationale behind this principle – and for the other four principles – CLICK HERE.
“A good sign that people aren’t saving enough [for retirement] is if they run out of money once they’re retired. But that’s not happening,” points out today’s article which focuses on the finding that, despite the constant drumbeat of concern that Americans aren’t saving enough for retirement, wealth actually appears to increase for most retiree households over the course of retirement. What data supports this finding, what factors might explain it, and what does it mean for those planning for retirement? CLICK HERE to read more.
With it being so often repeated that the key to a secure retirement is to start saving early and put enough into your 401(k) to get your employer’s match, today’s article argues that many investors are overlooking (or underutilizing) another important savings tool – health savings accounts: “According to some advisors, HSAs are also the Holy Grail of savings vehicles because of their rare triple-tax benefit. Contributions to HSAs are made with pretax dollars (in most states), assets grow tax-free, and distributions are tax-free if used to pay for qualified medical expenses or as reimbursement for such expenses.” Can you amass more wealth by contributing to a HSA first before contributing to your 401(k)? CLICK HERE to read more.
“There’s a whole world out here of unique experiences so if you can think there’s another way to live beside the 9 to 5 (and) if you can take the tremendous wealth and income opportunity that the U.S. has and instead of buying stuff and experiences in the short term, you can use it to buy freedom.” Today’s article highlights the stories of two individuals who retired (quite comfortably) in their thirties – one at 33! – despite not being “extraordinarily wealthy or lucky in terms of income or jobs.” What do their experiences reveal about “the secret to ditching the rat race before even hitting the big 4-0?” CLICK HERE to read more.