Despite having been the recipients of many advantages when it came to saving for retirement, a new study focused on the retirement preparedness of baby boomers finds they are shockingly unprepared overall. Among its findings? Barely one in 10 boomers has a sufficient amount saved for retirement – and nearly half have no retirement savings at all. Today’s article proceeds…
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.…
The author of today’s article has his entire life savings and net worth invested in his recession-proofed “real money retirement portfolio” and is highlighting his latest purchase – a low-risk, high-yield dividend blue chip that is currently significantly undervalued despite “its strong quality score, good long-term growth prospects, and solid management team”, creating the potential for it to deliver total…
While the author of today’s article acknowledges that there is much to make dividend-paying stocks appealing as a source of cash flow in retirement, she warns “I get nervous when retirees use them to take the place of bonds altogether. And I think retirees should get nervous, too.” What’s not to like, for retirees, about dividend payers, according to the…
When it comes to credit scores, buying cars (and buying homes), 401(k)s (and Roth 401(k)s), savings accounts, life insurance (and auto and homeowners and long-term care insurance), wills and beneficiaries (and powers of attorney), Social Security and more, the author of today’s article poses the following question: “What does a good financial life look like?” For his 45-step roadmap to…
It’s an unwelcome surprise for many retirees: having to pay more taxes in retirement than when they were working. In fact, one financial security expert cited in today’s article warns that “tax-deferred retirement accounts such as a 401(k), IRA, or 403(b) can be like sitting on a tax time bomb”. What are the two main reasons Americans are paying higher…
The median retirement account balance among all Americans of working age? $0.00. And that’s the median amount, meaning half of working-age Americans have even less than $0.00 to their name. And if the paltry state of Americans’ retirement accounts isn’t enough to convince you that there’s a retirement crisis, consider the fact that total U.S. consumer debt is now sitting…
“While the market has long periods of high returns, it has even more long period of low returns. Investors have seen entire decades delivering nothing but losses,” notes the author of today’s article – and this reality is critical for retirement planners to be cognizant of, given that financial advisors often use overly optimistic return assumptions when creating retirement plans…
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…
Only save in tax-deductible accounts – and disregard Roth accounts. Claim your Social Security benefit at age 62 – whether you need it then or not. Plan on your expenses dropping significantly once you leave the workforce. Double down on your employer’s stock. Ditch stocks for bonds when the market goes south. These are five of the 20 ways identified…