You can use some simple rules of thumb for retirement savings to help guide you. A rule of thumb is a broad guideline or principle based on experience or practice rather than theory or research. We often use rules of thumb in our daily lives. For example, have you ever said to yourself (or someone) … Read more
Let’s look at three reasons retirement is a flawed concept and what you can do about it. First, the flaws of retirement. Flaw #1: You’re likely to live longer. When the idea of retirement was first introduced in Germany in 1889, life expectancy was age 70. Now, life expectancy in the U.S. is 79 years … Read more
Sometimes I shake my head at the things financial advisors say and write. Like many small businesspeople, I use social media to stay current with what my colleagues are thinking and saying. Usually, I find the conversations stimulating and helpful to our clients because I discover research and ideas I may not have been aware … Read more
There is some confusion around the question of which retirement accounts have RMDs so let’s see if we can clarify. First, “RMD” stands for Required Minimum Distribution. This is the minimum amount that must be taken out of certain accounts starting with the year the account owner reaches age 72. The RMD is figured based … Read more
At the Federal level, the answer is “yes.” There is no way to keep IRA or retirement plan assets out of your estate short of taking the assets out of the IRA or retirement plan and paying taxes on the distribution. Thinking about IRAs/retirement plan accounts and estate issues, keep in mind IRA and … Read more
If you’re within five years of retirement, you probably have sleepless nights worrying about what retirement means to you. It’s okay to admit it. My un-official research shows 99.9% of pre-retirees are worried about some aspect of retirement. My research also shows that 90% of pre-retirees don’t admit it. It’s socially un-acceptable to admit you’re … Read more
Few topics generate more heated discussion among investing professional then this question. Active investing takes a hands-on approach and requires a portfolio manager to make decisions about what to buy and sell and when. Passive investing requires little involvement by a portfolio manager and emphasizes a buy and hold approach. According to a paper published … Read more
According to the Investment Company Institute, the average expense ratio of actively managed stock mutual funds was .71% in 2020. The average expense ratio for index stock funds is .06%. Why are actively managed funds more expensive? Fees are higher in active funds to pay transaction costs, pay the salaries of the research team and … Read more
Bankrate.com has come up with a new list of best places to retire. You can check out the list at this link, but more importantly, note the criteria Bankrate.com used. Affordability Wellness Culture Weather Crime. As I’ve suggested before, don’t use someone else’s criteria to decide where you want to live. For example, Bankrate’s criteria … Read more
I’ve counseled hundreds of clients as they think about retirement and I guarantee there are three statements no one wants to hear me say as they plan for retirement. You won’t have enough. You need to keep working. You will have to spend less in retirement. These three statements are what makes up the biggest … Read more
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