No, this blog post won’t be about furniture. Instead, I’m going to suggest a unique way of looking at retirement, which may be helpful for those struggling to get ready for when they stop working. There are three legs to the retirement stool: finances, healthcare, and lifestyle. With the first leg–finances–you focus on getting your money in order, which means paying down your debts and figuring out where your money in retirement will come from. It also means focusing on your nest egg and how you will grow it. The second leg is healthcare. This includes deciding what you will Continue reading The Three-Legged Retirement Stool
I’ve talked about diversification quite often in blog posts over the years. Most of that diversification talk has centered around investing in different types of investments, such as having a mix of stocks and bonds or investing in different market sectors. However, today I want to talk about diversifying the places where you actually put your money. You’re probably well aware that there limitations on how much you can contribute to an IRA or 401(k). So, what do you do if you have extra money? Well, you could put the money in a savings account or another IRA, or you Continue reading Diversify for Retirement With a Brokerage Account
Investing is more than just a numbers game. By that, I mean that you can have all the valuations, trends, and numerical data and still make bad investment choices or create a losing strategy. Most likely it’s because you don’t understand the risk in connection with where you are at in life. For example, a young investor (i.e. someone in their 30s) is in a much different place than an older investor (i.e. someone in their 50s). That younger investor can absorb a lot more risk than an someone older. Why is that? Because that younger investor has more time Continue reading The “I” in Investing When It Comes to Risk
I’ve said it here before and you’ve probably heard it thousands of times from other sources, the stock market is unpredictable. No, you can’t beat it or think you can outsmart it. So, what’s the best way to deal with it if you are using it to help build up your nest egg or fund your retirement? Ignore it! I know that might be hard to do, but it’s the only way you’ll stay sane. That’s especially true during economic periods like what we are going through right now. At the moment, it’s hard to tell what exactly the markets Continue reading Want Peace In Retirement? Ignore the Markets!
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
Investing can get complex quickly. It can be easy to overthink your investments and strategies, which can lead to confusion and just plain bad decision-making. While the pundits and talking heads may throw out random predictions and complex investing terms, but that doesn’t mean you need to get overly complicated with your portfolio. In fact, it’s best to keep your investing simple. That means taking on less risk, increasing your savings rates, and giving focusing on investments that are better geared to weather market ups and downs. What you want to avoid are complex strategies that may require you to Continue reading Keep Your Investment Strategy Simple!
You don’t need to actually reach retirement to know whether your plans or savings will be able to handle the rigors of it all. Yes, you can perform stress tests on your retirement savings and plans. It’s actually a good idea to do so from time to time so that you can adjust your plans or finances to better enjoy retirement. For example, if a stress test reveals that your nest egg won’t be able to cover your intended finances for the intended length of your retirement, you may want to consider changing your retirement budgeting an expenditures. Or, you Continue reading Have You Stress Tested Your Retirement Plans?
Investing can be exciting. It can also drive you nuts. While it’s important to keep track of the investments in your portfolio, you shouldn’t let it own you. It can be easy to get caught up in watching your stocks perform, but I’m telling you, you need to exhibit some patience. In fact, it will most likely lead to irrational decisions regarding your investments. While I am not saying you need to ignore your portfolio and investments, you should exhibit some patience with them. You don’t need to check them every day or even every week, but you may want Continue reading Let It Be: Stop Staring at Your Portfolio!
Many people take a do-it-yourself approach to retirement saving. For various reasons–usually because they feel that they can’t afford a financial advisor–they feel that they can do the retirement saving thing alone. Given the amount of free financial education resources found on the Internet as well as the growing number of companies that offering financial planning resources as part of benefits packages, it’s no surprise that some people feel they can do it alone. However, there are risks to going it alone in retirement planning and saving. One area that many one can run into with a DIY retirement is Continue reading Saving for Retirement on Your Own? Beware the Risks
If you’ve been reading this blog over the past few years, then you probably know where I stand when it comes to diversification (I like it!). As I’ve mentioned in the past, diversification should be an important part of your investing strategy as it helps to protect your portfolio by spreading the risk around, which further helps to insulate your money from market swings. However, the idea of diversification can seem daunting, especially if you do not have much investing experience or tons of money to invest. Luckily, there is an easy way to diversify your investments and that’s by Continue reading An Easy Way to Diversify