Zero. That is where investment advisory firm Research Affiliates places the chances of a typical balanced fund of 60% stocks and 40% bonds earning 5% or more in the next 10 years. Given that many retirement calculators use a default annualized long-term expected return of 6% or higher, the author of today’s article cautions that people saving for retirement based…
Think you’re a 401(k) pro? Are you sure? Noting that, when it comes to some 401(k) decisions, you only get one chance to get it right, the author of today’s article lays out seven 401(k) mistakes that even well-informed investors are capable of making. Do you know all the ins and outs of net unrealized appreciation (NUA), brokerage windows and…
“If and when the economy bursts, it will take the retirement dreams of millions of Americans with it,” declares the author of today’s article, who examines how the Federal Reserve’s monetary policies since 2008 have reflected a fundamental error that he argues will end up affecting tens of millions of U.S. boomers. That error? Ignoring the demographics of the country,…
While the average Social Security recipient is expected to see an increase in their benefit payments in 2017, that increase is only expected to be about $4 a month. Needless to say, recipients looking for a boost in their retirement income will have to look elsewhere. Today’s article advocates looking at three stocks with higher-than-average dividend yields and which, with…
In the current low-rate environment, “generating steady retirement income has never been harder,” declares the author of today’s article. Moreover, the author cautions that yields could just as likely go lower from here as higher. As such, he proceeds to discuss “eight popular sources of retirement income, ranging from dividend stocks to bonds to real estate to annuities, what current…
With their low default risk, high dividend yields – with some paying yields above 6% – and ability to provide most Americans with tax-free income, the author of today’s article describes municipal bonds as having “the retirement income trifecta.” Recognizing that it can be difficult to buy quality individual municipal bonds, the author recommends seeking out the kinds of municipal…
While inflation may currently be low, the author of today’s article warns that “this makes the possibility of an inflation threat going forward even more likely.” Moreover, she notes that health care costs are rising faster than inflation. All of this poses a particular threat to retirees relying on sources of income that lack inflation protection. As such, the author…
Today’s article notes that, in 2013, Social Security benefits made up 52% of household income for those aged 65 and over, and at least 90% of household income for almost a quarter of older retirees. These statistics make the findings of a new study by the Government Accountability Office all the more concerning: The GAO has determined that “Americans getting…
“Preferreds are one of the very few places where you can still get a reasonable income stream by historical standards,” states one manager of preferred funds in today’s article which examines the unique traits of preferred stocks that make them appealing (e.g. the aforementioned reasonable income stream), as well as the unique considerations that buyers of preferreds need to be…
Risk and retirement don’t go together. As such, given the difficult times (to put it mildly) that the energy sector has experienced over the last couple of years, energy stocks might not seem like goods bets for a retirement portfolio. However, the author of today’s article argues that “those planning (or even in) retirement might be doing themselves a disservice…