“With powerful demographic forces keeping interest rates lower for longer, investors (and financial advisors!) need to adjust their thinking for the future,” declares the author of today’s article, who cites a report from Morgan Stanley warning that, over the next 10 years, returns from a traditional 60/40 portfolio will be close to a century low. So what can investors do…
How much of your income do you need to save for retirement? As little as 4% — or as much as 44%! That’s what’s revealed in a new chart posted by data visualization site FlowingData.com, with where you fall on the 4% to 44% saving spectrum depending on when you start saving for retirement and when you plan to retire.…
With interest rates back on the decline and the bull market in stocks in its latter stages, the author of today’s article advises that those investing for retirement “should broaden their knowledge of the tools at their disposal” for generating retirement income – including “one somewhat obscure strategy”: selling covered calls. What are covered calls, what are the risks associated…
How do people who save 20% or more of their incomes for retirement – so-called retirement “super savers” – manage to do it? New research provides a big part of the answer, identifying “the single biggest difference between what super savers spent less on, as compared to the rest of us” – something super savers spend just 14% of their…
When it comes to identifying the “best” retirement locations, the author of today’s article acknowledges that “the best place to retire will ultimately depend on the retiree”. Still, there are some key factors relevant to all retirees, including housing costs, tax rates and health care. As such, the author proceeds to highlight what may be nine of the smartest retirement…
When it comes to generating retirement income, the author of today’s article advises that “Getting yield that’s at least twice SPY’s can make it worthwhile to take on higher costs and other risks” – and he proceeds to highlight several funds for retirement income, recommended by prominent financial advisors, whose yields at least double the yield of the broad market.…
Thirty-four percent of workers who have calculated how much they need to save for retirement concluded their magic retirement number is $1 million – and the author of today’s article has some encouraging words for those striving to amass $1 million for retirement on modest salaries: “building your nest egg to that size can be easier than you expect…All you…
If Social Security benefits replace approximately 40% of your pre-retirement income, where do you find the other 60% –and, of particular relevance today, where do you find the other 60% when interest rates are near historic lows? Today’s article outlines one “simple solution” to this challenge, noting that “It can be more volatile than a savings account. And it can…
“Owning a home is wonderful, but don’t bank on real estate as your chief retirement investment,” advises the author of today’s article, which looks at the reality when it comes to looking to real estate as a source of retirement riches. What’s the problem with banking on homes for retirement income – especially given the fact that many people have…
When it comes to funding his retirement, the author of today’s article intends to do it with the dividend income his equity portfolio generates, noting that “Dividend payments are more stable than share prices and the potential for capital gains, which makes them an ideal source of income for retirement. Historically, US dividend growth has exceeded the rate of inflation.…