If you’re a high-income earner, you might think that one popular retirement-saving vehicle – the Roth IRA – is not available to you due to IRS-imposed restrictions on who can contribute to these accounts. One strategy for high-income earners to get around these restrictions is the “backdoor Roth” – and while there has been concern about this strategy, the new…
“The goal of every dividend investor is to generate a sufficient stream of passive dividend income, that would adequately cover their expenses,” notes the author of today’s article –who proceeds to outline a process by which someone looking to retire in 10 years could attain this goal “even if you picked average companies.” For the five guidelines to follow in…
Today’s article highlights three small steps you can take that can make a dramatic difference (or giant leaps) in the ultimate size of your retirement nest egg. Among these steps is one the author states “is often the epitome of small-step-but-big-leap planning, as it can have almost no impact on your current financial situation, but may have dramatic impacts on…
When it comes to retirement planning, the author of today’s article notes that “What’s been missing for most people is a simple way to calculate the level of spending that can be generated from a given savings amount, that takes into account realistic assumptions about a retiree’s longevity as well as a forecast for market returns.” However, there is a…
With almost half of retirement savers having their entire account invested in a single target-date fund last year, the author of today’s article acknowledges that “Target-date funds are taking over retirement accounts” – and this may not be a good thing. He proceeds to explain how a combination of issues with target-date funds “could easily add up to 1 percent…
The Great Recession of 2007-2009 devastated many Americans’ retirement savings – and a new study finds that an experience many Americans face can be almost as devastating: divorce. Specifically, researchers found that “Divorce pushes up an individual’s retirement risk by 7 percentage points, [while] the 2008 financial crisis added 9 points.” What are the numerous reasons the authors of the…
Retirement investments are different – or, as the author of today’s article puts it, “Picking safe investments for retirement is a skill separate from making money in stocks, real estate, and other investment vehicles.” Given this, he proceeds to outline a number of options available when it comes to picking safe investments for retirement. For more – including a list…
The five years or so before retirement – and the moves you make during those years – can be critical when it comes to what kind of retirement you end up having. As today’s article notes, this has led some to refer to these years as ‘the fragile decade’, “because your investment returns then are disproportionately important.” Given this, the…
If, like many Americans, you find yourself behind when it comes to having enough saved for a financially secure retirement, one potential way to increase your retirement savings is by taking advantage of catch-up contributions. The author of today’s article cautions “Don’t fall into the trap of underestimating how much these extra contributions can potentially benefit your upcoming retirement” –…
“If you follow rich people, you’ll notice that they never actually sell any assets – they instead use them to generate more and more cash flow. We can – and should – do the same,” argues the author of today’s article – who proceeds to highlight five dividend paying (and dividend growing) stocks that have meaningful (above 5%) yields today…