On paper, it checks all the boxes. It provides a defined amount of income in retirement that’s adjusted to a standard-of-living index. You get to contribute as much or as little as you want toward your retirement nest egg. And there’s liquidity and transparency. The only problem? This near-perfectRead More →
In today’s world, a “one-size-fits-all” retirement concept is not for everyone. Rather than defining retirement as the complete end of a 40-year working career, individuals are increasingly taking early retirement, taking several smaller retirements, or working longer, but only partially. Fortunately, there is a savings instrument that offers specificRead More →
Hi, I’ve been a stay-at-home mom for five years to a 4-year-old and 2-year-old. I’m 32 and I don’t see a clear deadline for when I can return to work. My husband makes 150k a year and is contributing to his 401(k) at 3% with a 3% match. My questionRead More →
Dear Catey, My wife and I are 58. She will retire at 62 and I at 67. Our annual retirement income at 67 will be approximately $95,000 from Social Security, pensions and investments. We would like to find an affordable, friendly place to rent during the winter months, that isRead More →
R.S.R. Dear R.S.R., I hear you — it’s frustrating to read about people who get to live large in retirement when your reality (and frankly, most Americans’ reality) is very different. The average Social Security retirement benefit in 2019 was $1,470 a month or $17,640 a year, according to theRead More →
Dear Catey, I am a 40-year-old law-enforcement officer and hope to retire in 13 or 14 years. At that time, I will have 30-plus years on the job with a pension giving me 70% of my current income with a cost-of-living annual percentage increase around 2% or 3%. Additionally IRead More →
The human mind often works in fascinating ways that can help or hurt investors. If someone has to deliberately take action in order to participate in something, they are far less likely to do so than if they were signed up automatically with the option of not participating. This opt-in/opt-outRead More →
The slacker generation is slacking on preparing for retirement. On Thursday, financial firm Fidelity Investments released its biennial Retirement Savings Assessment, which looks at how ready Americans are to retire. Overall, the average American saver has “steadily improved their retirement readiness over the last 15 years to have 83% ofRead More →
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 →
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 →
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 →
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 →
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 →
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 →
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 →
