Gauging Your Psychological Readiness for Retirement

Those near retirement should ask themselves a very important question: Am I psychologically ready to change my lifestyle from being employed full-time to being retired? It’s a big question that often does not receive much attention. Rather, most of the focus on retirement readiness centers on savings. Workers are commonly told to ensure that they…

 

Required Retirement Savings Rate Depends on Age and Income

Saving 15% of income for retirement is a common rule of a thumb. The actual number depends on the amount of replacement income needed, when the worker starts saving for retirement and when he or she plans to retire, according to the Center for Retirement Research at Boston College. The Federal Reserve’s National Retirement Risk…

 

Delaying Retirement, But Not Your Retirement Dreams

Many investors today who had planned to retire early at 62 when they became eligible for Social Security benefits—albeit at a reduced rate compared with retiring at full retirement age—are discovering that those benefits, combined with their retirement savings, cannot support the lifestyle they expected or provide the financial cushion in retirement they desire. Often,…

 

Retirement Strategies for Volatile Markets

Volatile and uncertain market conditions are particularly troublesome for those who have recently retired or are near retirement. The decisions made during this critical period can significantly determine whether savings will last throughout one’s lifetime. Christine Fahlund, a senior financial planner at T. Rowe Price, says there are simple steps that can increase the odds…

 

Retirement Planning: A Step-By-Step Approach

It’s complicated, it requires detailed work—but it’s all right here in a how-to-do-it format. So, get out your calculators (one that can solve for exponentials) … More than any single factor, money will determine when people will retire and the type of lifestyle they will have during retirement. This article is designed to help you…

 

A Do-It-Yourself Approach to Target Date Retirement Investing

Advertised as a one-stop shopping, automatic-pilot retirement vehicle, life cycle or target date mutual funds have become increasingly popular. These funds are aimed at individuals seeking an all-in-one retirement fund to invest his or her retirement nest egg, with a target date whose termination date approximates the date of his or her projected retirement (e.g.,…

 

Computerized Investing’s New March Content

Computerized Investing’s new March content is now available! This month includes: Cryptocurrencies and Bitcoin: What are They? An introduction to cryptocurrencies and how they work. Eight ways Online Retirement Planning is Superior to That Printed Reported Stashed Somewhere in Your Desk The founder and CEO of NewRetirement, an online retirement planning service, describes concrete ways…

 

Determining Your Allocation at Retirement

The AAII Journal articles on retirement allocation by Jerome Clark and Josh Cohen present different strategies for the amount of stocks and bonds an investor should hold at retirement. Specifically, they disagree on whether investors should immediately increase their fixed-income holdings at retirement (termed the “to” strategy) or gradually increase their fixed-income holdings throughout their retirement years (the…

 

Living off Retirement Savings in a World of Uncertain Return Patterns

A “conservative” approach doesn’t necessarily need to translate into more conservative investments in your portfolio during your retirement years. Look in almost any financial publication or informational brochure aimed at individual investors and you will find broad asset allocation recommendations for the various stages of one’s life. Most of these recommendations are based on similar…

 

Juggling Competing Goals: College vs. Retirement Funding

What’s more important, your retirement or your child’s college education? Financial planners generally suggest that the former should receive priority, but many parents also want to plan for their children’s higher education. While financial priorities are a matter of personal choice, parents need to keep things in perspective. If you don’t have sufficient assets or…