This week’s AAII Weekly Digest highlights these “must-read” AAII articles:
Robo-advisers are growing in popularity, especially among those who do not want to deal with managing money themselves. As part of Computerized Investing’s ongoing coverage of robo-advisers, this installment compares the asset allocation recommendations and risk-return profiles that were created by several robo-advisers for a hypothetical AAII member.
Even in retirement, it is important to maintain a large allocation to stocks. Yet when it comes to managing their investments, too many retirees are working from an outdated playbook, one that de-emphasizes the crucial role of equities. This disconnect between modern retirement lifestyles and an old-fashioned approach to investing underscores a big risk that can threaten retirement bliss: the chance that a retiree might outlive his or her assets.
With more and more baby boomers entering retirement, the hard truth is that only a small minority are accumulating enough savings to provide for their income needs during decades in retirement. Nevertheless, those approaching retirement can improve their income and financial security in retirement depending on their flexibility. This article discusses four big decisions would-be retirees can make to optimize their retirement income.
What’s the key to making good investment choices? Here are 10 axioms of effective investing that provide the critical cornerstone for guiding investment philosophy and making decisions that will ensure that you meet the universal goal of creating financial wealth for retirement. Visualizing the peace of mind and security that comes with maintaining a disciplined, successful savings program can help you get started down the road to financial success.
Our Member Question for this week is:
This week marks the kick-off of the holiday shopping season. Do you plan on spending more or less this holiday season compared to last year?
Vote to answer this week’s Special Question: If you could receive (or give) one thing this holiday season, anything at all, what would it be?
Last Week’s Results:
Target-date funds have become a popular way for investors to “set it and forget it” when it comes to asset allocation for their investment portfolios, as the funds automatically reset the asset mix of stocks, bonds and cash equivalents in their portfolios according to a selected time frame that is appropriate for a particular investor. However, these hybrid mutual funds tend to be more popular among younger, less experienced investors. To see how popular target-date funds are with our readers, we asked what percentage of their portfolios are invested in them. We also asked them what they believed were the biggest advantages and drawbacks to investing in target-date funds.
Investing can be a daunting process, especially for those just starting out. The mission of AAII is to provide unbiased education to help individual investors become better managers of their own investments. This e-book, available exclusively to AAII members, helps you get a handle on the investment process by starting with the basic principles. This knowledge will form the foundation for developing an overall investment plan to help you achieve your financial goals.