Last week we discussed the value of having a guaranteed retirement income source. Annuities offer some strong advantages with their contractual guarantees. But they are only one part of the financial picture.
Overall, a portfolio could have many holdings: stocks, bonds, mutual funds, annuities, CDs, or even other financial instruments.
This brings up the question of portfolio allocation. Is there a paradigm which you should follow?
Ultimately, we would say it varies among individuals. Your portfolio strategy should be a good fit for your current situation, needs, goals, risk tolerance, and risk capacity.
Of course there are some well-known general rules of thumb for starting discussion, like the Rule of 100 for portfolio diversification.
As you get closer to the life stage of distribution — or where you are living off your retirement savings — risk tolerance and risk capacity become even more important. But just what are these risk-related metrics? Read More
Proactive planning is a critical step for a secure retirement. But just how prepared are American households for their retirement years? Of course it’s important to recognize all households will have different retirement needs. People vary in their life circumstances and objectives, and as a result, their financial circumstances and requirements will also vary.
Some couples may require a seven-figure nest egg to feel secure. Others are confident their Social Security benefits will be suitable for their future needs. Given how Americans have such a wide-ranging outlook on finances in retirement, how people interpret statistics such as average American household retirement savings will vary. What may be the start of a looming crisis for some may be a minor challenge for others. Read More
In the past, we’ve discussed ways to create a meaningful retirement. After many years of hard work, people want to enjoy their retirement years. It’s important for this period to be enrichening, but taking steps to ensure a secure future is also paramount.
Many baby boomers are couples. Oftentimes household duties and responsibilities are divvied up among partners. One handles the finances, and the other may hold responsibility for other areas of planning. Daily chores such as cooking or cleaning the kitchen are likely to be split duties.
According to U.S. Census Bureau data, women live an average four years longer than men do. If one partner deals with household finances and passes away one day, it can lead the other with quite the conundrum. To avoid this situation, people should take action now. Here are a few steps to further enjoy a more secure retirement – and to ensure the future is addressed for your partner. Read More
In the past, we’ve looked at retirement planning strategies for specific populations, like self-employed Americans or women. But what if someone is part of the segment of Americans who aren’t that well-prepared for retirement?
According to a survey conducted by BankRate.com, 36% of surveyed adults say they didn’t have a penny saved for retirement. Around 25% of the people aged 50-64 in the survey reported they had yet to start their retirement savings. These findings are consistent with data found in previous surveys. In fact, previous data shows there’s a wide gap between Americans’ retirement expectations and what they’re actually prepared for.
A big part of it is because many American households live paycheck to paycheck. So what steps can you implement to catch up on retirement savings? Read on for some helpful tips. Read More
In the past, we’ve talked about the importance of being prepared for retirement. Of course preparation is different for everyone. For one, women will have different retirement needs and goals than men.
It also depends on what employment capacity you’re in. If you’re employed by a large company, for instance, you may have a retirement pension plan via your employer (though these sorts of perks from employers are disappearing). But what about planning for retirement if you’re self-employed?
According to various data sources, there are roughly 10 million self-employed Americans – from business owners and independent contributors to freelancing professionals. In a recent TD Ameritrade survey, around 55% reported they’re behind on retirement savings. On the whole, baby boomers have an average windfall of being $335,000 down from their retirement savings objective. Read More
In the past, we’ve covered some of the financial challenges seniors are likely to face in retirement. In turn, these hassles have played a role in shaping Americans’ retirement expectations. One of the growing trends is post-retirement employment.
At present, many people have a shortfall in retirement funds. For instance, the Boston College Center for Retirement Research found many Americans were greatly underprepared. According to the center’s data, as of 2013 half of American households didn’t have enough money to sustain their current standard of living in retirement.
Despite this challenge, many Americans believe working longer will help cover the shortfall. This belief is increasingly giving way to a new expectation: that post-retirement employment in itself is enough to make up for not having a retirement plan. But the truth is many factors can unbalance this approach and lead to unnecessary financial hardship. Read More
The holidays are around the corner. It’s getting closer to cherished times with family and friends. But for many Americans, this memorable period comes with its own stresses. Apart from the “typical” hustle-and-bustle, the holiday season itself presents many financial pressures.
As we’ve covered before, seniors already face a number of challenges in retirement. Say your family is living out-of-state. If finances are already tight, travel could be costly and difficult. Like seniors, working Americans have their own difficulties, too. Many households struggle with just having enough retirement funds as current household expenditures take priority. For instance, in a 2014 study by BankRate.com, over 33.3% of American workers didn’t have any retirement savings.
Or for seniors and their families: say there hasn’t been a family discussion over finances. Given the season’s merriment and cheer, it may seem like not a good time to talk over such matters. But in fact, the holidays can be a great period for reflection and discussion. They are a great springboard for re-examining and readjustment of financial priorities.
Read on for some common holiday financial humbugs to avoid while preparing for the festivities. Read More
In a prior blog, we’ve covered what a dream retirement lifestyle may look like. Other discussions have centered on the importance of planning for retirement or the array of retirement vehicles available. But what about the process of retirement planning itself?
Retirement planning isn’t limited to just people and their advisors. When someone reaches retirement age, support networks become important. Responsibilities shift. Family members are actively involved in their parents’ caretaking. Or they may take on the role of caretaker for their parents. Read More
In prior blog posts, we discussed the importance of preparing for retirement. After all, it’s a critical component of a secure post-retirement lifestyle. Having an effective, personalized retirement plan will help bring lasting peace of mind.
Unfortunately, surveys continue to show Americans have strong anxiety about their retirement. A recent PricewaterhouseCoopers survey report offers insights into current levels of retirement confidence. In the 2015 Employee Financial Wellness Survey, retirement confidence was stronger than last year’s survey. 57% said they weren’t confident they’d be able to retire when they wanted to – down from 60% in 2014 and 65% in 2013. Read More
In previous blog posts, we’ve discussed topics such as the growing appeal of fixed index annuities. Changes in the American retirement landscape, such as the shrinking availability of defined-benefit pensions, is prompting many workers and retirees to investigate alternative retirement income vehicles. As a result, total fixed index annuity sales in 2014 shot up 104.3% from total sales figures in 2004, according to Beacon Research ($47 billion in 2014 versus $23 billion in 2004).
But what, then, about CDs? How do fixed index annuities stack up against them? To get a comparative overview of both financial solutions, let’s cover some history as well as key differences. Read More
Start a Conversation About Your Retirement What-Ifs
Start a Conversation About Your Retirement What-Ifs
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