• the SECURE Act of 2019 became law on December 20, 2019 • SECURE — Setting Every Community Up for Retirement Enhancement • Let’s break down the key changes, most of which benefit retirement savers Today I’ll summarize the key changes and assess the impact to taxes. The Act has a large number of provisions. […] Read the full article…
• Schwab survey of 401(k) participants said they needed $1.7M. • ‘The people we surveyed have a realistic target for retirement, but many likely aren’t on track to get where they want to go’, According to Steve Anderson, President, Schwab Retirement Planning Services. • Your magic number can be very different from others based on […] Read the full article…
We love simple rules. It’s how our brains are wired. We use heuristics or mental short cuts to solve complex problems. Chances are you have heard of the ‘4% Rule’ for retirement spending. The rule states that ‘Assuming a minimum requirement of 30 years of portfolio longevity, a first-ear withdrawal of 4%, followed by inflation-adjusted […] Read the full article…
Fidelity Investments wrote an interesting retirement piece that creates an age-based rule of thumb for how many multiples of earnings are needed for retirement. The rule of thumb model is based on a core set of assumptions we’ll cover later, so it’s important to know that the number here should be considered a starting point […] Read the full article…
Consider two phases of wealth management: the accumulation phase and the distribution phase. In the accumulation phase the top concern is to grow retirement assets to meet future income needs. In this phase, income from employment provides for both current spending and retirement investing. Investment decisions focus on building a high confidence plan that ensures […] Read the full article…
Larry Fink is Chairman and CEO of Blackrock, the world’s largest investment management company with over $5.4 trillion in assets including iShares ETF products. He spoke late last month at Morningstar’s Investment Conference and discussed a wide range of issues including the state of the US economy, the state of active and passive investing, and […] Read the full article…
Are you concerned that you will outlive your assets in retirement? In a Wells Fargo / Gallup Poll conducted last August, 46% indicated they were ‘very’ or ‘somewhat’ worried about outliving there assets. I think there are several good reasons behind this fear. First, there is always some risk (uncertainty) about what future market returns […] Open full pdf article…
In his recently released 3rd edition of “Irrational Exuberance,” Nobel Prize winning economist Robert Shiller asserts that, “This is not the golden age for investing and we shouldn’t assume that it’s going to be as it always was.” The historical assumption of 10% market returns may not hold true for the future. The core argument […] Read the full article…