Amid the low interest rate environment of recent years, many income-seeking investors have turned to high-yield bond funds and dividend mutual funds in the search for higher income. However, with interest rates now rising, these funds are becoming riskier – leading the author of today’s article to suggest an alternate strategy to generate income: investing in pass-through securities, which “are…
The FIRE (Financial Independence, Retire Early) movement has been gaining traction – but, as today’s article seeks to make clear, as wonderful as the prospect may seem, extra-early retirement isn’t for everyone. Specifically, the author outlines some of the financial and emotional consequences of early retirement – as well as some questions to ask yourself if you are still considering…
The author of today’s article is no fan of 401(k) plans, asserting that they don’t work. On the other hand, traditional pensions are largely obsolete. However, he notes that “There is one widely overlooked option that combines the best of the two retirement savings plans.” That option? Cash-balance plans, which are hybrids of traditional defined-benefit pensions plans and 401(k)s –…
There are still a few weeks left of summer, but now may be time to start thinking about the end of the year – especially if you are in or nearing retirement. Today’s article outlines a number of ways that retirees and those planning their retirements can benefit by getting an early start on their year-end financial planning. For more…
In a recent study, 44% of retirees reported that healthcare costs in retirement were higher than they had anticipated – and the financial security expert cited in today’s article cautions that “Higher-than-expected medical and nursing home costs are only two of several ways people underestimate their retirement costs.” What are the three critical ways she sees people underestimate their costs…
The good news regarding mutual and exchange-traded fund fees? Last year saw the biggest one-year decline in fees and several major fund companies have been competitively lowering their fees (with one now even offering index funds without any management fees). The bad news, according to today’s article, “is that many investors don’t realize how much they’re paying in fund fees…
The foundation of any retirement plan is the age at which we plan to retire. Unfortunately, as today’s article highlights, “that foundation isn’t nearly as solid as we think. We often systematically misjudge when we’ll actually retire, and that can wreak havoc on our finances.” What does a new study – which found that roughly half of Americans retire earlier…
With paltry bond yields on one hand and the risks associated with high-yielding funds and stocks on the other, generating enough income in a low interest rate environment can be challenging for retirees. However, today’s article highlights two “innovative” ETFs that the author sees as offering slightly higher yields while mitigating risks. The first of these two funds seeks out…
What does it take to have accumulated $1 million by retirement age (65)? The author of today’s article outlines how this seemingly Herculean task is “actually much easier–especially if you start saving early–to let your investments do as much heavy lifting as possible.” How can you have $1 million saved by age 65 – and is $1 million even an…
Noting that the two most important factors for those on the verge of retirement are income and stability, the author of today’s article states that “a soon-to-be-retiring person can maintain a perfect stock portfolio with the help of strong organizations that pay substantial dividends” – and he proceeds to highlight nine companies that fit this profile. For these nine dividend…