When it comes to determining how much money you need to retire, there is no lack of opinions out there. Today’s article, however, highlights “an elegant solution to the problem” devised by one financial advisor that the author describes as a “divergent thinker”: a simple formula based on the market value of your house. For this formula – and why…
Today’s article calls it “the nastiest hardest problem in finance”: retirement spending strategies. And unfortunately, despite the complexity inherent in retirement spending strategizing, it is often subject to simplistic rules of thumb, most notably the 4% rule. The author outlines the dangers associated with the 4% rule, how it “can go very badly”, and the implications of this for the…
When it comes to retirement funding strategies, it turns out there may be a hole in the popular bucket approach, making those strategies more likely to fail. That’s the finding of a recent comprehensive study of both bucket and non-bucket strategies. Why are bucket strategies more likely to fail than non-bucket strategies – and which retirement funding strategy did the…
The author of today’s article advises that “when it comes to selecting investments for each part of your portfolio, you can really skinny things down by focusing on investments that provide a lot of diversification in a single shot.” She proceeds to highlight a number of funds that both retirement accumulators and those who are already in retirement could consider…
When it comes to the top three reasons that retirement withdrawal strategies fail, the author of today’s article sees them as (1) sequence of return risk, (2) sequence of return risk and (3) sequence of return risk. How might sequence of return risk be a greater problem for retirement withdrawal strategies than even low average returns, how can you “get…
“Today, we are at peak FIRE, perhaps similar to peak crypto reached in December 2017. Unfortunately, when you’re at the peak, there’s usually nowhere to go but down,” laments the author of today’s article, who warns that the FIRE (financial independence, retire early) movement “is in for a rude awakening” — and poised to be overtaken by a new retirement…
How do you calculate how much income you will need in retirement (and how much you need to save for retirement given that figure)? What kind of retirement account is right for you? What makes a good 401(k) plan (and how can you make the most of your 401(k) plan)? What about fees, asset allocation, and retirement income streams? And…
As the House of Representatives prepares to change hands in the new year, both the outgoing Republican chairman of the Ways and Means Committee and the presumed incoming Democratic chairman of the committee are proposing changes to retirement regulations – including changes pertaining to the risk of retirees outliving their savings. For more on these potential changes, how they could…
Are you better off retiring in a bull market or a bear market? For those who have the option of retiring now while the good times are still here or waiting until things go south, this is an especially salient question. In today’s article, the author runs the numbers on retiring during a raging bull market versus retiring in a…
Contributing to tax-deferred retirement accounts is an attractive option for building your nest egg. However, the author of today’s article cautions that “While contributing to your 401(k) account can be beneficial, exceeding the statutory limit could cost you a lot.” In order to ensure that your contributions are all above-board, the author proceeds to outline the rules pertaining to contributing…