Outsmart the Markets? You’ll Just Look Dumb

Many Americans use the stock market–and other investment markets–as a way to build up their nest eggs over the long-term. After all, well thought-out investments in steady, low-risk annuities or mutual funds can produce quite a return over a long period of time, such as multiple decades. However, not all Americans have the discipline and patience to make such long-term investments. It’s not uncommon for some to attempt to outsmart the markets by either trying to predict what an investment will do next or by making risky investments that they hope will payoff in the short-term. This rarely, if ever, Continue reading Outsmart the Markets? You’ll Just Look Dumb

Will You Really Need RMDs at 70 1/2?

I’ve written about the SECURE Act here many times in recent months as it is legislation that could open up a lot of retirement saving opportunities for a wide swath of Americans. Officially titled as “The Setting Every Community Up for Retirement Enhancement Act of 2019,” this bill could allow for small businesses to band together to offer retirement savings plan benefits, increase the age for required minimum distributions (RMDs), and allow IRA and 401(k) plan holders to purchase annuities with money in the accounts. While all those a good things, this post is really going to focus on the Continue reading Will You Really Need RMDs at 70 1/2?

Retirement Planning as a Risk Management Endeavor

There are a lot of risks associated with retirement. You can’t predict the future, which means you don’t know what expenses or costs may exactly lay ahead. Yes, you can try to plan for potential expenses based on educated guesses (i.e. your past medical history or expected tax levels), but those are still guesses. If you find that risks associated with retirement are what keep you up at night, then you may want to tweak your approach to planning for retirement. Instead, you may want to look at it from a risk management point-of-view. Taking a risk management approach can Continue reading Retirement Planning as a Risk Management Endeavor

Re-Emphasizing the Importance of Diversification

I wrote about this a few weeks ago, but I want to mention it again–especially as the economy appears to be trending further downwards since–if you have invested your nest egg in the markets and want to protect it, you need to diversify your portfolio. This can be achieved by investing in various types of investments (i.e. stocks, annuities, bonds, etc.), by investing in various types of companies (i.e. blue-chip stocks), and by investing in different market sectors/industries. Diversification is important, especially during tough economic times, because it helps to minimize risk and spread it around your portfolio. By spreading Continue reading Re-Emphasizing the Importance of Diversification

Using Asset Allocation to Your Advantage

Asset allocation is an important part of saving and planning for retirement. Having the right asset allocation can help maximize your money and grow your nest egg efficiently as well as help protect you from risk. Depending on where you are in the retirement saving timeline, how exactly you allocate your assets will differ and change with life events and as you get older. For example, when you are younger–when just starting out in a career and before you have a family–you may find that your appetite for risk is higher, so you allocate your assets to take advantage of Continue reading Using Asset Allocation to Your Advantage