Mark Hulbert notes dividend-stock strategies may be out of favor, but these days, they can provide not only a higher yield but also growth potential….MO
— Read on www.thestreet.com/opinion/why-its-a-good-time-to-consider-dividend-paying-stocks-15092345
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How much to save per month for retirement
Retiring can be an intimidating prospect, given the many financial unknowns involved. And there’s just something unsettling about giving up a steady paycheck and living on savings and Social Security instead.
The latter has older workers especially worried. In fact, 59% are concerned that Social Security won’t have adequate funds to pay their benefits, according to a recent Nationwide survey.
If you share this concern, you should know that it’s valid. But you should also know that there’s one important step you can take to alleviate it.
— Read on www.usatoday.com/story/money/2019/09/21/59-of-future-retirees-are-worried-about-social-security-data-shows/40153191/
Peter Lynch: Secrets to Success | Investing Lessons | Fidelity
For the 13 years, Peter Lynch ran Fidelity’s Magellan® Fund (1977–1990). During that period, he earned a reputation as a top performer, increasing assets under management from $18 million to $14 billion (as of 1990). Since then, Lynch has mentored virtually every equity analyst at Fidelity. He also authored several top-selling books on investing, including One Up on Wall Street and Beating the Street, and has been a generous contributor to the Boston community, the Catholic Schools Foundation and the Inner City Scholarship Fund.
Whether you enjoy picking individual stocks, aspire to it, or prefer to rely on professional management in the form of mutual funds, ETFs, or managed accounts, his plain-spoken wisdom can help you become a better investor.
“In the stock market, the most important organ is the stomach. It’s not the brain.” — Peter Lynch
“More people have lost money waiting for corrections and anticipating corrections than in actual corrections.” — Peter Lynch
“Stocks aren’t lottery tickets. Behind every stock is a company. If the company does well, over time the stocks do well.” — Peter Lynch
Read on www.fidelity.com/viewpoints/investing-ideas/peter-lynch-investment-strategy
Source: FIDELITY VIEWPOINTS – 09/18/2019
Plan for Retirement by Focusing on Your Life Goals – Barron’s
Scott Hanson, co-founder and senior partner at $4.5 billion Allworth Financial, sounds more like a life coach. After 27 years in the business, he understands that a big problem many folks have in retirement isn’t that they haven’t saved enough or invested wisely—it’s that they haven’t laid out their life’s goals and are left feeling deflated and unhappy.
— Read on www.barrons.com/articles/plan-for-retirement-by-focusing-on-your-life-goals-51568421815
- Life is about relationships and meaning. When you leave the workplace, people risk losing relationships and their sense of purpose.
- Money is just a tool and can help accomplish what’s important to people. Sometimes, people are still trying to get clarity on what’s important. A financial advisor’s goal should be to help people live rich and meaningful lives.
- The danger of predicting where markets are going to go is that, if things go wrong, there could be dire consequences for life.
- Taxes can take such a big chunk out of wealth. Paying attention to taxes—whether while selling an investment or taking a withdrawal from an IRA or considering a Roth IRA conversion—can mean the difference between paying 15% [on profits] versus 35%.
Grow Your Retirement Savings to Keep Up With Inflation- Ticker Tape
Source: TD Ameritrade’s The Ticker Tape
— Read on tickertape.tdameritrade.com/retirement/your-retirement-savings-plan-inflation-15452
Key Takeaways
- Understand if your assets are keeping pace with inflation and cost of living increases
- Consider how even an “average” rate of inflation can cut into your retirement savings
- Take a look at some saving and investing suggestions that might help you combat inflation
- Most of us probably strived for better-than-average grades at school and better-than-average salaries at work. That being the case, it’s kind of surprising that so many investors seem to be comfortable having “average” retirement savings for their age.
Unfortunately, if your savings are just “average,” they probably aren’t going to account for inflation and cost of living increases both before and during retirement. The hard truth is that even after you retire, your assets will need to grow quicker just to keep up with higher prices.
How to make your retirement savings last forever — Market News
New research, which began circulating in academic circles earlier this month, was conducted by Javier Estrada, a professor of finance at IESE Business School in Barcelona. His new study is entitled: “Managing to Target (II): Dynamic Adjustments for Retirement Strategies.”
In it, Estrada measured the success rates of various strategies that adjusted withdrawal rates depending on whether your portfolio in any given year is ahead or behind of what your retirement financial plan had assumed it should be. It will be ahead, needless to say, if your investments perform better than had been assumed by your financial plan–and behind if your investments have performed more poorly.
Estrada refers to strategies that adjusted withdrawal rates as “dynamic,” in contrast to the “static” strategy implicitly assumed by many financial planners.
To illustrate: Let’s say you retire with a $1 million portfolio, want to fund a 30-year retirement, and your investments grow at an annualized rate of 5% above inflation. Assuming you do not intend to leave a bequest, and assuming your portfolio’s investment return is 5% in each year along the way, you can withdraw the equivalent of $61,954 in today’s dollars in each and every one of those 30 years.
In fact, of course, that italicized assumption is unrealistic. Given the inevitable variability of yearly returns along the way–some good and some bad, it’s not unlikely that, at some point along the way, your portfolio’s performance would be insufficient to support that rate of steady withdrawals. You’d run out of money, in other words.
— Source and Read on research.tdameritrade.com/grid/public/markets/news/story.asp
21 lessons for how to get the most out of life, from a guy who retired at 50 – MarketWatch
A man who retired at 50 offers some unvarnished truths about life and retiring.
“Life should not be a journey to the grave with the intention of arriving safely in a pretty and well-preserved body, but rather to skid in broadside in a cloud of smoke, thoroughly used up, totally worn out, and loudly proclaiming “Wow! What a Ride!” — Hunter S. Thompson
— Read on www.marketwatch.com/story/21-lessons-learned-from-early-retirement-2018-04-12
Retirement Concern: How to Alleviate Four Common Fears for Retirees
Source: TD Ameritrade’s The Ticker Tape
https://tickertape.tdameritrade.com/retirement/reduce-common-retirement-concerns-fears-17461
1. Investment Loss
One of the biggest financial fears retirees may have is investment loss. Because the markets move cyclically, there’s a good chance you’ll experience a market downturn during retirement. This can be doubly painful if you’re a retiree, because you have little choice but to sell at a loss for the capital you need. For retirees this is called “sequence of return risk,” because withdrawing investments in a down or declining market may cause you to liquidate too many shares, which then leaves fewer shares to grow when the market bounces back.
2. Running Out of Money
When you’re younger, a market decline can be weathered in multiple ways: perhaps by saving more, working longer, getting a second job, or just waiting it out because you won’t need to use your savings for years. But once you’re close to or in retirement, running out of money becomes a serious concern. Few people would want to go back to work at age 95 because they ran out of money. Fortunately, the flooring strategy helps here too. Lifetime income means just that: an income stream that’ll last no matter how long you live. By deploying annuities and other lifetime income strategically—just to meet your essential expenses—you can cover basic needs and avoid becoming a burden to your kids or others.
3. Major Health Event
As we get older, it’s common to see an increased need for health care. It’s natural, as a retiree, to worry about a major health event that can set you back financially. But it’s possible to prepare to some degree for such events.
4. Inflationary Effects
Inflation is sometimes considered the “quiet killer” of retirement. Over time, prices rise, making your money less valuable. A dollar today is worth more than a dollar tomorrow. Keeping up with inflation is an important part of retirement planning.
Planning Matters
One of the best things you can do for yourself is to plan ahead. Meet with a retirement specialist to create a plan that might help you avoid unpleasant surprises in the future. The earlier you start, the more likely you are to avoid the common fears faced by retirees. Having a plan in place and making consistent contributions to a retirement portfolio can go a long way.
University of Texas at Austin 2014 Commencement Address – Admiral William H. McRaven
Remarks by Admiral William H. McRaven, U.S. Navy – Retired, ninth commander of U.S.Special Operations Command, The University of Texas at Austin, May 17, 2014.
A Rich Life – HumbleDollar
A Rich Life – HumbleDollar
— Read on humbledollar.com/2019/09/a-rich-life/
Frugality is about avoiding spending on things that have little value.
Affluence is about having things that truly matter.
It’s possible to strike a balance, so you’re frugal and affluent at the same time.
Track your expenses, ruthlessly reducing or eliminating spending that has little meaningful value. This will help you spend more on things you find truly rewarding. It doesn’t take a supersized income, financial windfalls, unsustainable self-deprivation, extraordinary luck or investment genius to become affluent.
Even if you have none of these, but you have frugality, financial success is all but inevitable.
