November 7, 2008 at 7:50 pm (Investments)
Heard a comment from a colleague today that in a recession there are three things to invest in: gold, diamonds and guns. Hmmmm. Not sure that will bring wealth. Reminds me of pre-2000 when people were predicting Y2K doom. We all know what happened to them!
Fear drives these thoughts and leads to missing opportunities. Are you being rational with your financial decision-making? Those rational thinkers are the ones who will fare well in the long-term.
November 1, 2008 at 3:46 pm (Investments)
I found this interesting research to help calm fears: The years following the past 13 bear markets saw the average annual return of the S&P 500 stock index to be 44 percent from the bottoms, according to the Russell Investments Group. So if history repeats itself, we could see a good year next year. Of course, all this depends on unknowns such as the next president and the smoothing of credit markets. But the lesson is not to panic, it may not be so bad afterall.
October 22, 2008 at 4:06 pm (Uncategorized)
It’s either because you need medical and employee benefits or just the cash to get by. That’s the top reasons in a survey by Sun Life Financial, which just started tracking why people work in retirement. A full 83 percent of those between 30 and 66 surveyed said they will work at least 20 hours a week after age 67.
To me, this says people are not preparing for a financially secure retirement. They are not saving enough, instead spending too much now. They may end up surprised when they get to retirement and find out their employer has cut benefits, which many are doing to stay in business. You cannot count on someone else for your financial well-being. You are your own CEO, manage well or ask for help from an advisor.
August 7, 2008 at 7:48 pm (Lifestyle)
Most conventional wisdom is that once you retire you don’t need any more help managing your money because your savings plan is complete. Not true. A recent survey found 94% of retirees working with a financial professional discovered it to be helpful. The survey was completed by Thrivent Financial. It showed advisers can help retirees manage the emotional financial decisions in addition to the normal managing and withdrawal strategies. I agree that most people overlook managing behavior when it comes to managing money. An adviser helps mediate those thoughts and prevent poor, uninformed decision making. Have an adviser on your side and make sure he or she will support you emotionally, too.
July 30, 2008 at 1:56 pm (Lifestyle)
Older Americans are more likely to delay retirement today then they were a decade ago, according to a report by The Coyne Partnership, a consulting firm. The annual growth rate of actual full retirees will be about 4 percent during the next 25 years. This points to a trend of not retiring for good but retiring to begin a new life in a new career or new working lifestyle for retirement. More evidence that retirement is a renaissance not just personally but professionally.
July 23, 2008 at 12:38 pm (Uncategorized)
Understanding how much you are paying for your 401(k) could become easier under rules proposed by the Labor Department this week. For too long, employers have made it hard to understand the fees, such as administrative fees, and other expenses employees have deducted from their balances. New rules would take effect Jan. 1 that require all the fees to be disclosed.
I’ve done 401(k) fee analyses and it’s amazing the variety of fees different companies charge. If you need help analyzing yours, contact me.
July 22, 2008 at 1:29 pm (Retirement plans)
Time for a little good cheer — many of us DO want to reach our renaissance! The Investment Company Instutite reports this week that Americans are continuing to save for retirement despite some breakdowns in the economy. Retirement assets reached $17.6 trillion at the end of 2007, it said. We socked away $184 billion in mutual funds last year, up 23 percent from the pace in
2006. More than half the retirement assets are in IRAs or defined contribution plans, it said. It’s encouraging that most Americans are not letting the media hype of doomsday economics derail their pursuit of retirement bliss. If you’ve been sidetracked in your savings, you need a financial plan now.
July 18, 2008 at 4:43 pm (Uncategorized)
Middle-income Americans entering retirement now will have to reduce their standard of living by an average 24 percent to minimize their chances of outliving their money, a study by Ernst & Young reported in the Washington Post said. This is another wake-up call to the importance of prioritizing retirement savings. Who wants to go into the best part of their life with no money!? If you need guidance, contact me now.
July 15, 2008 at 8:18 pm (Uncategorized)
Fidelity Investments has a new annuity product that doesn’t quite act like an annuity, in the form of having some benefits not found in other annuity products. Fidelity lets you pass on the balance of the annuity at the owner’s death to heirs, unlike other products where the balance disappears at death. Fidelity also gives step-ups in returns, so if the investment goes up 5 percent, the payout does, but if it then goes down 5 percent the payout doesn’t go down. Its guaranteed income helps the owner plan better knowing what the check will be.
If you are interested in a comparison of your current annuity versus the Fidelity plan, contact me for a free analysis.
June 30, 2008 at 5:14 pm (Lifestyle, Retirement plans)
Taking drastic measures against your retirement assets can put a crimp in your renaissance, says the chief of the financial industry regulation agency.
Mary Schapiro, chief executive of the Financial Industry Regulatory Authority, said recently Americans should think twice before taking out reverse mortgages, 401(k) loans and other retirement plan withdrawals just because times are tough now.
“They may raise cash quickly, but each also carries long-term consequences that can undermine financial security in retirement and pose the potential for losing a significant, and sometimes irreplaceable, asset,” Schapiro said.
