Every parent knows that kids cost a lot of money, for everything from food, clothing and shelter to child care, education and health care. They’re right: studies show that a two-parent family with two kids devotes between 31% and 47% of total household spending to its children. And at theRead More →
Co-produced with Beyond Saving The “Setting Every Community Up for Retirement Enhancement Act of 2019”, called the “SECURE Act” makes significant changes to retirement account rules and brings up new considerations for retirees. At High Dividend Opportunities, our priority is on building a large immediate income stream with a portfolioRead More →
New year, new resolutions — and maybe a new life in retirement. Resolutions are often top of mind at the turn of the new year. Not everyone keeps them (about 80% of these promises are broken by mid-February) but thinking through and implementing a few steps could lead to aRead More →
President Trump signed the SECURE Act this week as part of the government’s spending bill and it will inevitably affect most retirement savers, for better or worse. The SECURE legislation — which stands for “Setting Every Community Up for Retirement Enhancement” — puts into place numerous provisions intended to strengthenRead More →
By Jennifer DeLong and Andrew Stumacher Transcript: Jen DeLong: As we talk about these lifetime income solutions and DC plans, do you think that more plan sponsors, as they think about adopting these solutions, may begin to want to keep the participants in their plans longer? Seems to be theRead More →
Co-produced with PendragonY An income investor’s No. 1 focus is income for the year. With a new year fast approaching, you should begin to take appropriate steps for success now. Set an income-based target determined by how much income your portfolio generates now, and how much you will need whenRead More →
Don’t miss these top money and investing features: Workers who diligently put away money from their paycheck into a 401(k) retirement plan expect that acting responsibly will provide greater financial security in old age. Unfortunately, that’s not the case for many savers. Just as there’s a cavernous, growing gap betweenRead More →
Life is expensive. That’s something most Americans can agree on, and financial setbacks of all sizes can take even dedicated savers off course. Almost half of Americans said they withdrew from their retirement accounts early, a recent Bankrate survey found, because of unemployment, unexpected bills (including medical) and debt repayment.Read More →
For retirees or near retirees (people aged over 55 but not retired yet), one of the major challenges is finding a sustainable income stream. Only 15 years ago, you could earn 5%-6% safe and guaranteed income from instruments like bank CDs with literally no risk. But that era is overRead More →
Since launching my company’s investment advisory service for retirees, True Link Financial, my colleagues and I have spent a lot of time talking to people about their financial plans. Here are five of the most common mistakes we’ve seen and how retirees can avoid them: Mistake No. 1: Thinking youRead More →
When performing a recent screen of total return bond funds for a higher-net worth client, I came across the behemoth PIMCO Income Institutional Fund (PIMIX). After my first look at the fund, I thought this could be just another total return fund. However, Dan Ivascyn and Alfred Murata of PIMCORead More →
Dear Catey, I plan on retiring in about 5-7 years when I am in my early to mid-70s. Any suggestions for affordable and LGBT friendly retirement communities? I’ll have a modest IRA income and Social Security that will allow me to spend between about $4,000 and $4,500 a month. AbroadRead More →
There are more millionaires next door. Despite that fact that most people are undersaved for retirement, a study released by Fidelity Thursday shows that the retirement savings picture isn’t quite as grim as you might think. Indeed, the number of 401(k) and IRA millionaires hit a record high at theRead More →
Don’t miss these top money and investing features: It’s likely that your stock portfolio will suffer a major downturn during your retirement years — and probably more than once or twice. Don’t panic — prepare. Make sure your stock portfolio is allocated appropriately for your risk tolerance, which means havingRead More →
Most Americans need to work right up until their 60s — or later — to have enough money for retirement, but how much they’ll save highly depends on the type of job they have, especially if that work is in the gig economy. Older workers are at risk when theyRead More →
While facilitating a life-planning workshop in Portland, Ore. last summer, I asked for a show of hands: How many of you have a will? How many have a power of attorney document? An advance directive? What about a financial plan? I expected a weak response to some of these questions,Read More →
(Source: imgflip) Each week, I make one purchase of a dividend stock for my retirement portfolio that is designed to meet my goal of maximizing safe income over time. The dream is to be able to live off 40% of my portfolio dividends, meaning 50% of post-tax dividends. The halfRead More →
Co-produced with Beyond Saving and PendragonY Introduction A recent article suggested “Annaly Capital Management: Not Suitable For Retirement Accounts“. We resemble that remark, we are invested in Annaly Capital Management (NLY), collecting the 11.4% yield, and many of us are retired. Like many investments with high-yields, bullish views on NLYRead More →
Climate change. Wars. Overworking. Unnecessary meetings. And just flat out being broke. These are some of the reasons why millennials aren’t planning for much of a retirement. Twitter TWTR, +0.70% erupted with suggestions as to how this young generation could spend their old age, using the hashtag #millennialretirementplans, on TuesdayRead More →
In order to solve large-scale challenges, it is important to remember that innovation – the creation of new solutions – does not only involve technology, but it can also come from changes in thinking, in mindset, and applying old ideas and tools anew. Especially when tackling difficult issues like theRead More →
Jordan, a physician from Illinois, earned a fat paycheck, was frugal and had real-estate investments — a perfect candidate for early retirement, some might say. When he learned about the FIRE movement, short for “Financial Independence, Retire Early,” Jordan knew his savings were enough to quit a practice that wasRead More →
There’s not much that’s flashy or glamorous about a target-date retirement fund. It’s kind of boring, actually. But in this case, boring is brilliant. Really. I’m in the process of writing a new book to teach young investors how to maximize the probability that they’ll have more than enough moneyRead More →
Don’t miss these top money and investing features: Stories connecting with MarketWatch readers this past week include a spotlight on the grim financial reality millennials are likely to encounter when they begin to retire in about 30 years. Plus, read about why the U.S. stock market is riskier than youRead More →
Until we retire we are all preretirees. So this article applies to you unless you’re already retired. However, my fundamental focus here is the mistakes people make in the last 10 years before they retire. Here’s why this is a critical time: If you’re 10 years out, or even five,Read More →
The extended U.S. government shutdown that occurred earlier this year shined an unflattering spotlight on our country’s financial preparedness. It revealed that many people who wouldn’t typically be considered impoverished are still clearly living paycheck to paycheck. This certainly doesn’t bode well for them saving enough money to be financiallyRead More →