Think Income While Saving for Retirement

Have you ever asked yourself “Am I saving enough for retirement?”, if so you are not alone. There are many calculators and software programs readily available online to help project what your portfolio may be worth at retirement. The problem I see with many of these tools is that they put far too much emphasis on the total dollar amount accumulated at retirement. Instead of worrying about a total amount to save for retirement, investors should start focusing on how much monthly income their portfolio will be capable of generating in retirement.

The Fastest Way to Sabotage Your Retirement

We’ve talked about this before – on a few occasions – but it never hurts to revisit timeless truths that help keep things in perspective. Last year, a survey by Allianz Life Insurance Company of North America reported that more Americans would rather die than run out of money in retirement. While neither is a pleasant thought, at least the latter can be avoided.

Is running out of retirement money a fate worse than death?

Imagine this – the year is 2040. You are 80 years old, in reasonably good health, and you have just spent your last penny of retirement savings. You have no other sources of income. For the rest of your life, you will rely on government handouts and the charity of others. Sit with that image for a moment and then …

What to do with your 401(k) or 403(b) if you leave your job

A while back, I had the radio on in the car, listening to an investment show on the radio: “Hi. My name is Ron. I am a first time caller.” “Hi, Ron. What can I help you with?” “I was laid off from my employer due to downsizing. I was wondering whether to leave my 401(k) where it is or …

Protect against inflation or preserve capital?

A man is lying in his hospital bed, surrounded by friends and family, reflecting on his recent near death experience. “I always thought it’d be the ulcer that killed me. I did everything the doctors told me. I drank the cream, ate the butter, drank the milk. And now I have a heart attack!” This was a scene from the …

The role of luck in a financially secure retirement

A new type of mutual fund was introduced in late 2007, by the fund industry, called managed-payout funds. The goal of these funds is to give retirees a steady stream of income. At the time, they were touted as being an easy way for investors to get regular income payouts, professional money management and relatively low fees. Early players in …