As you gear up for retirement, you may have heard of “safe money solutions.” Are they right for you? It’s an important question, especially since retirement planning is more difficult than it’s ever been in history.
While Social Security will cover at least some of their expenses, most retirees will have to rely on income from their own investments and savings to make up the difference.
However, what many call a bewildering amount of financial choices in today’s market can leave people feeling frustrated.
According to the Investment Company Institute, nearly 120,000 regulated investment funds are available to retirement savers today. And what about other options? There are more annuities than hedge funds available, which doesn’t even begin to cover the universe of countless other instruments that can be tapped for retirement goals. Read More
If you are gearing up for retirement, take heed. Here are eight common mistakes that people make when engaging a financial advisor. These blunders occur more than they should, but the good news is they are easily preventable.
Up until this point, you may have worked with a financial advisor in growing the value of your nest egg. With their help, you created a personal investment strategy and built a portfolio to meet your goals.
But with people spending as long as one-third of their lives in retirement, your next phase-of-life requires careful planning as your working years did. This calls for a financial professional who can help you navigate the unique retirement challenges facing you.
Editor’s Note: The following article is a retirement guest post that has been authored and contributed by Katherine Brown.
Have you already saved money for your retirement years, or are you playing catch-up now? You need to be aware of certain myths and misconceptions about retirement.
Surviving and thriving during your retirement years entails knowing the truth behind these misconceptions. When you are armed with the right information, it’s easier to turn your lifelong savings into dependable strategies that can help you retire comfortably. Read More
“The Breakfast Club” was a classic coming-of-age film. The stars of the movie? Gen X misfits dreaming of their futures during a fateful day-long detention in their high school library.
What they couldn’t have foreseen is that many Gen Xers would grow up to be responsible not only for their own well-being, but for the care and livelihood of their parents and their grown children as well.
So, if a sequel about Gen Xers was made today, it might be called “The Breakfast Sandwich Club.” And why? Many members of Gen X struggle to plan for their own futures while facing the financial impact of caring for the generations before and after them. Read More
Most people consider investment returns as a benchmark for judging the performance of their portfolio. This may be especially true for retirees and pre-retirees who likely have been invested in the market for some time. That experience might have been through brokerage mutual fund investments, brokerage accounts, or even retirement savings plans such as 401(k)s or IRAs.
But the reality is that many financial concepts rely on average returns to forecast future portfolio activity. Yet compounding growth and compounding losses are the real-life factors that will potentially affect a portfolio’s value.
This is strongly exemplified in sequence of returns risk, a potential hazard for American retirees. And that doesn’t apply to only retired households.
Sequence risk can also linger for soon-to-be-retirees, especially during the “retirement red zone,” that critical decade of five years before and five years after one retires. Read More
The Great Recession that began in late 2007 was a painful period in many Americans’ lives. Everyone who was invested in the market, people who were overextended in mortgages, and those who lost jobs as a result of a crippled economy, were among the millions affected.
Since then, many people have recovered from the financial setbacks. Nevertheless, a new study by the Federal Reserve Bank of San Francisco suggests that challenges linger. According to Fed researchers, the long-run effects of the financial crisis cost every American an estimated $70,000 in lifetime income.
The researchers point to a big decline in domestic output levels as a primary cause of those losses. Based on early-2000s Congressional Budget Office forecasts, our national gross domestic product remains well below what its 2007 trend implies we might have been at now. And it’s said to be unlikely that the economy will ever make up that lost territory.
Once, reverse mortgages were considered to be the financial stepchild of retirement income sources. But respected authorities like Wade Pfau have shed new light on its potential uses in a retirement strategy. Now, growing shares of financial professionals, retirees, and other Americans see their benefits for certain situations.
If you have any pre-conceived notions about reverse mortgages, you might have formed them while watching those TV commercials with Tom Selleck, Robert Wagner, Henry Winkler, or one of many other well-known personalities.
You might ask, “What roles might a reverse mortgage play in my retirement income plan?” That is a good question. Let’s take a look at some potential uses for a reverse mortgage, including what it may involve. Read More
Bankrate.com surveyed Americans of different generations. While each had its own idea of the ideal retirement age, on average those surveyed believe the best age to retire to be 61.
Gen Xers and Millennials chose 61 and 60, respectively, as their ideal ages. Baby boomers (ages 64-72) and the silent generation (age 73+), possibly making a more seasoned estimate of the optimal retirement age, chose age 64 to 65.
Everyone wants to retire comfortably, especially after years of hard work. But age forecasting isn’t necessarily the best way to approach this. Just-as-critical questions to ask (if not more so) are: “What income do I want to retire at?” and “What financial resources will I need to enjoy my preferred lifestyle?” Read More
What do you plan to do the first day you actually retire? Plan that dream trip? Write that first page of your novel? Explore new opportunities to partake in hobbies or other interests? Just take a deep breath and learn to relax?
Or, at least, that is what working-age Americans foresee for their retirement futures. Commissioned by PGIM Investments and conducted by The Harris Poll, the study found that 52% of pre-retiree baby boomers expect to have a full-time or part-time job during retirement.
This finding is in sharp contrast to the lifestyle of current retirees, with only 6% of them working for a paycheck. Pre-retiree Gen Xers are even more convinced they will need to work in retirement, according to the study, as a substantial 58% responded this way. Read More
Start a Conversation About Your Retirement What-Ifs
Start a Conversation About Your Retirement What-Ifs
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