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…
There are many actions (and inactions) that can wreck retirement plans. As such, while the author of today’s article acknowledges that the $1 million figure frequently cited as how much one needs to amass for a comfortable retirement may be arbitrary, he stresses that “what is not arbitrary is it takes discipline and it requires avoiding mistakes and pitfalls to…
Which is the better choice for retirees (or any other income investor): building a portfolio of individual dividend stocks or buying a dividend exchange-traded fund? The author of today’s article argues that, “while total return is certainly a very important consideration, there are a number of other factors that can swing the decision one way or the other” – and…
“We’ve invented a new approach to money management,” claims Matt Fellowes, Founder and CEO of United Income – which is pitching itself as a one-stop shop for helping Americans tackle all of the difficult financial questions that surround retirement. What does United Income’s comprehensive, personalized, “big data” approach to retirement planning offer that other firms, online retirement calculators and financial…
Are your savings working as hard for you as they can? Noting that “if you don’t save diligently, you are highly unlikely to amass a decent-size nest egg,” the author of today’s article proceeds to outline 10 questions to ask yourself in regards to your savings and saving practices – and identifies steps you can take to improve your savings…
How much money will you need in order to keep living like you live today in retirement? Various formulas for coming up with this number have been devised, but today’s article outlines one particularly simple rule of thumb that can be used in making this determination: the Rule of 300. How does the Rule of 300 work, how much does…
When it comes to assessing risk, the author of today’s article argues that “most people don’t really understand what their true risks are.” He proceeds to identify what he believes is the greatest risk most retirees face – one that is not getting the attention from retired (and retiring) baby boomers that it warrants. The risk in question is associated…
How far a $1 million nest egg will get you in retirement depends on where that retirement takes place. Today’s article highlights the findings of a new report which assessed how many years $1 million would last for retirees 65 and older for each state, with numbers ranging from 26.3 years in one state to 11.9 years in another. Where…
In the wake of their failure on health care reform, Republicans in Washington are determined to pass tax reform – and as today’s article notes, “among the tax reform proposals currently being discussed is one that would convert part or all of workers’ tax-deferred 401(k) contributions to Roth 401(k) contributions, which are made after taxes have been removed.” What would…
While traditional pension plans are largely becoming a thing of retirement past, 25% of pre-retirees are still fortunate enough to participate in one – but the author of today’s article warns those individuals not to get too comfortable with their apparent advantage when it comes to funding their golden years, cautioning that “there’s a good chance your pension plan is…