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 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…
“Annuities often get a bad rap,” states the author of today’s article, who acknowledges some of the drawbacks associated with these products. However, he notes that all investments have drawbacks – and that annuities can be “the hedge against the emotion of fear that you will run out of funds before you die.” He proceeds to outline the numerous ways…
With the stock market of the world’s second-largest economy – China – having dropped by more than 20%, what does this mean for retirees in the U.S., who often hold significant positions in non-U.S. stocks? The author of today’s article notes that such a divergence between the U.S. stock market and a leading foreign market is increasingly rare – and…
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…
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…
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…