In a year that witnessed one of the most divisive and wackiest presidential election campaigns in U.S. history, it’s not hard to find lessons that can apply to various aspects of your life. But when it comes to takeaways that can improve your retirement planning and investing, I think there’s one big lesson we should all draw from 2016: Don’t let the constant flow of predictions and prognostications about the markets and the economy—no matter how prescient they may seem—divert you from a comprehensive plan designed to achieve success over the long-term. More»
Saving for Retirement
When it comes to New Year’s financial resolutions, saving more is a perennial favorite, as Fidelity’s 8th Annual Resolutions Study shows. And that’s fine, except resolving to save ore may not be very effective if “more” still falls far short of being “enough,” or if you aren’t investing your savings properly. Which is why if you want to be really serious about making sure you’re doing all you can to achieve a secure retirement, I recommend you put these two key resolutions at the top of your list. More»
Dear Millennials: You’ve no doubt noticed that you’re the financial services industry’s new best friend forever. It seems hardly a day goes by that some investment firm doesn’t release a study or survey purporting to offer keen insights into your financial behavior or suggest astute ways you can improve your prospects (that not-so-coincidentally involves buying that firm’s products or services). But while having an entire industry tripping over itself to woo you can be a heady experience—I know because my fellow baby boomers and I received similar treatment for years—the unrelenting attention can also be a distraction that can interfere with making good financial decisions. So as someone who’s been there, done that—and who’s been covering financial topics as a journalist for more than 30 years—I’d like to offer three tips that can help you sort through the hype and hoopla and improve your odds of attaining financial security. More»
In the days following the presidential election, we’ve seen a deluge of investing and retirement advice. Some is perfectly reasonable: Don’t make any radical moves in your 401(k)! But some recommendations, such as putative ways to “Trump-proof your portfolio,” is in my opinion questionable to say the least. Now that we’ve all had a little time to digest the election results, I’d like to offer a few more fundamental (and sensible) lessons from the election and its aftermath that can help you better plan for retirement in the years ahead. More»
Ask Real Deal Retirement
I often see rules of thumb suggesting how much people should save each year or how much money they should have in retirement accounts by certain ages to be on track to a secure retirement. But I don’t see how it’s possible for people to meet these benchmarks when big chunks of income go to things like mortgages and children. Are these savings targets actually achievable?
You probably heard last week that a new Nerdwallet study found that Millennials may need to save upwards of 22% of salary throughout their careers if they hope to have a secure retirement. Yikes! That’s almost 50% more than the 15% target many retirement experts suggest, and nearly four times the median 6% that a 2015 Nerdwallet report says young workers are currently saving. Which raises a serious question: Is 22% a realistic target for Millennials to shoot for, especially considering that many of them are already struggling with housing costs and student loan debt? More»