If you are in the pre-retirement accumulation phase, the recent market selloffs offer an opportunity to purchase your future retirement dividend income at a bargain. As such, the author of today’s article screened the list of dividend champions, using a number of criteria to identify quality dividend companies that may be worthy of further consideration by bargain-hunting retirement accumulators. For…
What’s the best way to ensure that your retirement funds will last as long as you do? A research team at Stanford sought to answer that question, and after analyzing 292 retirement income strategies, has identified what it believes is the best strategy – one which “produces more average total retirement income expected throughout retirement compared to most solutions… and…
The author of today’s article argues that people make a critical mistake when it comes to retirement income planning: “limiting their strategy to interest and dividends and neglecting the power of rebalancing to capture portfolio growth as an additional income source.” So how can rebalancing be used to create a paycheck in retirement? The author outlines an example of how…
Leverage and retirement don’t conventionally go together – but a new exchange-traded fund targeting retirees who require more income than they can get from a typical 60-40 stock-bond portfolio is looking to include a leverage component in an effort to provide investors with superior returns. As today’s article outlines, “this fund takes those vanilla investments, adds a dollop of exposure…
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…
The GOP’s new tax bill – the Tax Cuts and Jobs Act (TCJA) – is far from a done deal (see the GOP’s failure on healthcare reform). Still, the author of today’s article advises that “those living in retirement and saving for retirement should start to review their sources of income, their expenses, prior tax returns, and conduct what-if analyses…
“REITs are your ally in retirement,” advises the author of today’s article – and, in fact, a report from last year noted that real estate investment trusts have a “dramatic” effect on retirement portfolios. As such, the author proceeds to highlight five REITs that may be particularly attractive picks, as each offers the prospect of both income and growth for…
“Is there a hybrid solution that can give you some of the lifetime income of an annuity, while offering the inflation protection and principal availability of an investment portfolio?” This is the question that the author of today’s article poses before examining one possible option in that regard: managed-payout funds. After delving into the managed-payout funds (and related investment products)…
Budgeting may be the cornerstone of financial success but two-thirds of Americans don’t have a budget (and the one-third that do undoubtedly don’t enjoy managing it). Given this, the author of today’s article outlines an alternative to monthly budget tracking: the First Step Cash Management System, “a cash flow system [that] almost runs itself.” For how this bucket-based system works,…
The market’s sequence of returns matters – having weaker returns come early in one’s life cycle (when the amount invested is smaller) and stronger returns come later in one’s life cycle (when the amount invested is much larger) puts one in a much better position going into retirement than the reverse scenario. Unfortunately, while the sequence of returns matters a…