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 –…
Required minimum distributions from tax-deferred retirement accounts are, as the name indicates, required once one reaches the age of 70 ½. For those who don’t need to tap their retirement funds, RMDs create a tax obligation – and risk pushing them into a higher tax bracket. Fortunately, today’s article outlines a number of strategies “that can be leveraged to manage…
The single biggest risk you face in retirement may be that you will outlive your nest egg – and the author of today’s article warns that Wall Street’s solution to this risk – the 4% withdrawal rule – is fatally flawed. Instead, his solution is to “build a retirement portfolio with an outsized dividend yield.” Why does he argue that…
Of early retirement, the author of today’s article notes that, while the idea of it is appealing to most people, “the discipline and sacrifice needed to adequately prepare for it may be significantly less appealing.” So is early retirement a realistic prospect – or, for that matter, even a worthwhile one – for you? The author proceeds to outline a…
Monthly dividend payers can be especially beneficial for retirees to help cover their monthly bills – and the author of today’s article notes two additional – and perhaps overlooked – benefits of these stocks: monthly dividends are a sign of dividend safety and they allow dividend cash to be put to work faster. He proceeds to highlight three top monthly…
At this time of year much is written about the benefits of tax-loss harvesting. Finding losers to sell, however, may be a particularly difficult undertaking this year given the market’s performance. Instead of tax-loss harvesting, today’s article looks at “another tax-harvesting strategy [that] looks to be better suited to this year’s buoyant market conditions: tax-gain harvesting.” Why would investors want…
Is 2.6 the new 4? When it comes to your financial plan’s safe withdrawal rate in the low-return environment that many institutions are forecasting for traditional asset classes going forward, that may be the case. However, rather than just accepting lower withdrawal rates, there may be things investors can do to overcome this situation. Today’s article offers a number of…
The author of today’s article calls it “one of the more underutilized strategies for taxable investment accounts”. That strategy? Tax-loss harvesting, whereby poor performers are sold at a loss in order to offset that year’s capital gains – and lessen one’s tax burden. The author proceeds to identify areas that may offer the best opportunities to exploit the tax-loss harvesting…
For retirees looking for income streams, today’s article highlights a trio of energy stocks to consider. Not only does each of these stocks pay an above-average yield but, more importantly, the author notes that the dividends are low risk as the businesses in question all generate predictable cash flows, have strong balance sheets, can cover their current dividends with room…
According to the American College of Financial Services, Americans are not particularly knowledgeable about how to preserve their accumulated assets and create sustainable streams of income in retirement. As such, the central question of today’s article is “How do you convert your nest egg into a stream of retirement income that lasts as long as you do?” The author outlines…