Should I Invest Half My Retirement Savings In An Annuity?

Annuity

By Walter Updegrave, RealDealRetirement, @RealDealRetire

Ask Real Deal Retirement

I’m looking to retire soon and a financial adviser wants me to invest half of my $700,000 401(k) balance in an annuity. I’m wary of doing that as the annuity’s annual fees total almost 3% and I’m also already eligible for a combined Social Security and pension benefit of $70,000 a year. What do you think?

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3 Things The Olympics Can Teach Us About Planning For Retirement

By Walter Updegrave, RealDealRetirement @RealDealRetire

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If you’ve been following the action in Rio the past couple of weeks, you know that the Olympics can teach us a lot about just how far the combination of intense competition and a fierce drive to excel can push the boundaries of athletic achievement. But the Olympic games also impart a number of broader lessons that apply beyond the world of sports, including these three that can improve your odds of success in planning retirement. More»

Can I Invest 100% of My Retirement Savings In Stocks If I Hold A Sizeable Cash Reserve?

By Walter Updegrave, RealDealRetirement @RealDealRetire

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Ask Real Deal Retirement

I’m retiring and plan to keep two years’ worth of living expenses in cash and invest the rest of my retirement savings in stocks. The idea is that I’ll be able to earn stocks’ high long-term returns and not have to worry about selling stocks at a loss in a bear market since no bear market lasts more than two years. Do you think this is a good plan? More»

Don’t Screw Up The Benefits of Index Investing By Making These 3 Mistakes

By Walter Updegrave, RealDealRetirement @RealDealRetire

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For consistently competitive returns, index funds and their ETF counterparts are the way to go. If you doubt that, just take a look at this new Vanguard research paper that lays out the case for indexing and check out the latest S&P Dow Jones Indices’ index vs. active scorecard, which shows that fewer than 20% of large-company stock funds beat the Standard & Poor’s 500 index over the five- and 10-year periods ending December 31. But just buying index funds and ETFs doesn’t guarantee investing success. To do that, you’ll also need to steer clear of these three all-too-common indexing mistakes. More»

Should You Take This Hands-Off Option For Retirement Investing?

By Walter Updegrave, RealDealRetirement @RealDealRetire

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Ask Real Deal Retirement

I’ve been putting my retirement savings into a target-date fund but want to know whether that’s a good idea or if I should consider other investments. What do you think? More»

Should Your 401(k) “Nudge” You Into Buying An Annuity?

By Walter Updegrave, RealDealRetirement @RealDealRetire

Annuity

After outlining the benefits annuities can provide to retirees, a new research brief by the Boston College Center For Retirement Research (BCCR) highlights a proposal for ensuring that more retirees will reap those benefits: have your 401(k) shift a percentage of your balance into an annuity at retirement unless you specifically opt out of doing so. Which raises a number of serious questions, among them: Is it okay to “nudge” you into an annuity on the assumption you’re better off with one but might not invest in one on your own? Or is this unwarranted meddling that could push you into an investment you may not need? More»

How To Live A Longer and Happier Retirement

By Walter Updegrave, RealDealRetirement @RealDealRetire

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Ask Real Deal Retirement

I’m retired and very thankful that I have enough income to live comfortably. I enjoy helping others who are less fortunate than I am and have often wondered: Will my volunteer activities increase my longevity? More»