What happens if you have the bad luck to retire at a market peak, right before a brutal bear market (a scenario that many approaching retirement right now may be especially concerned about)? The author of today’s article runs the numbers to determine what effect this has on a portfolio’s value over the course of a retirement – and his…
“A lifelong, low-cost investment strategy that I believe is likely to produce superior long-term returns without much attention from you” is what the author of today’s article lays out. The strategy in question is comprised of two “building blocks” – a target-date retirement fund at the core and a “booster fund” to generate higher long-term returns with little extra risk.…
Despite a number of anxiety-inducing market routs, stocks have performed quite nicely this year. That impressive performance, however, brings with it some potential problems for investors, including off-balance portfolios and taxes on gains. As the author of today’s article notes, “a lofty market environment presents a lot of potential tax traps, as the appreciated winners in a portfolio that are…
Given its recent moves, investors have reason to be anxious about the market – and none more so than investors who are at retirement’s doorstep. For those in that group, today’s article outlines a number of strategies to consider, as identified by top financial advisers. First, however, the author advises that “It’s critical that you…draft a retirement-income plan”, noting that…
The ultimate success of your retirement plan may depend to a significant degree on moves made – or not made – during the final 12 months before your actual retirement date. Today’s article outlines a number of considerations, as identified by financial experts, for this critical period – considerations pertaining to investments, debts and homes, expenses, taxes and lifestyle. For…
What could be bad about the trend currently underway towards commission-free trading? A lot – especially for retirees. In fact, the author of today’s article describes zero brokerage commissions as “the latest Siren Song to tempt retirees into dangerous behavior.” So what exactly is the concern? It has to do with the effect that zero commissions have on trading frequency…
When it comes to managing your investments in retirement, the author of today’s article notes that “hiring a financial advisor can set you back 1 percent or more of your investable assets – if you have $250,000, you’ll spend $2,500 per year in expenses. That’s money that could have gone toward reinvesting and growing assets, taking a vacation, paying taxes,…
When it comes to 401(k)s and IRAs, the author of today’s article argues that “Gambling away your retirement funds in a government-sponsored game of chance is a game you have little hope of winning.” Instead, he asserts that if you want to retire for real (and early), the key is attaining financial freedom – which requires focusing on cash flow…
Having an employee stock option plan is a fortunate position to be in as, if well-managed, these plans can fund major financial goals, including retirement. However, the author of today’s article cautions that “Stock option plans are often misunderstood and choices are often made that leave people paying substantially more taxes on this employee benefit than is absolutely necessary. Small…
With paltry bond yields on one hand and the risks associated with high-yielding funds and stocks on the other, generating enough income in a low interest rate environment can be challenging for retirees. However, today’s article highlights two “innovative” ETFs that the author sees as offering slightly higher yields while mitigating risks. The first of these two funds seeks out…