The 10 Myths of Retirement Planning
Posted on July 9, 2014 | Financial Planning
Retirement planning requires a clear-eyed analysis of future needs and income. Yet many individuals view retirement through rose-colored glasses.
Here are some of the most common myths and how you can bring reality into focus.
Myth #1: You will not need as much money during retirement as you do now.
The general rule of thumb says that you will need approximately 70% of your pre-retirement income in order to maintain a lifestyle similar to that which you currently have. This may be true if you live your current lifestyle. However, when you retire, you will have more free time for travel, leisure activities, hobbies, and other things you might like to do during your retirement years.
Sell OF THE WEEK 7/9/2014
Posted on July 9, 2014 | Podcast
AAII Journal Editor Charles Rotblut explains to Chuck Jaffe of MarketWatch why Veritiv Corporation (NYSE: VRTV) is his “Sell of the Week” on the MoneyLife Radio Program. MoneyLife is a daily personal finance show that sorts through the financial clutter to bring you the information you need to lead the MoneyLife.
Audio url: Sell of the week
BUY OF THE WEEK 7/8/2014
Posted on July 8, 2014 | Podcast
AAII Journal Editor Charles Rotblut explains to Chuck Jaffe of MarketWatch why Alliance Fiber Optic Products (AFOP) is his “Buy of the Week” on the MoneyLife Radio Program. MoneyLife is a daily personal finance show that sorts through the financial clutter to bring you the information you need to lead the MoneyLife.
Audio url: Buy of the week
Putting the Numbers to Work: The Magic of Ratios
Posted on July 8, 2014 | Classroom
Ratio analysis relies on financial statements to study the past and develop a feel for a company’s attractiveness.
Valuation Ratios: The PEG Ratio
Posted on July 8, 2014 | AAII Journal
The PEG ratio factors in a company’s growth into its valuation, allowing investors to compare companies with different rates of growth.
Posted on July 6, 2014 | AAII Journal
John Bogle and Jack Schwager are two names not commonly mentioned in the same sentence. John Bogle started a mutual fund company to offer index funds in 1975 when nobody thought the idea would work. Today, Vanguard is one of the largest fund companies in the world. Jack Schwager interviewed several top traders and wrote about his conversations in 1989. His book, “Market Wizards,” became a bestseller and sits on my bookshelf at home. (Yes, I know John Bogle goes by “Jack,” but to avoid confusion here, I’ll use “John” to refer to him.)
Common Investor Mistakes and Other Investing Insights
Posted on July 5, 2014 | AAII.com
In the second part of our interview with John Bogle, he discusses how investors commonly put too much emphasis on past performance. Plus, he offers his views on high-frequency trading.
Posted on July 4, 2014 | Computerized Investing
This month marks several changes here at Computerized Investing. We begin by saying goodbye to Joe Lan, who has been accepted to the University of Michigan’s Ross School of Business, where he will start his pursuit of an MBA degree this fall. For nearly the last four years, Joe has been a tremendous asset to Computerized Investing and to AAII. I wish him all the best in his studies and future endeavors.
As Joe starts down a new career path, I am excited to welcome Hareesh Jayanthi to the CI team. Hareesh has a master’s degree in finance and a bachelor’s degree in economics and has experience in the mutual fund and fixed-income arenas. Besides being a contributor to Computerized Investing, Hareesh will be part of the Dividend Investing and Stock Superstars Report advisory committees and will assist in supporting Stock Investor Pro, our fundamental stock screening and research database program, and other AAII publications and products.
Social Security’s Lump-Sum Payment Option
Posted on July 3, 2014 | Investor Update
The Social Security Administration offers the chance to receive a lump-sum payment of up to six months’ worth of benefits. It’s not a well-known option, but it is available to anyone meeting the basic requirements. There are also caveats to consider.
Retroactive benefits can be claimed by a person who has reached full retirement age (FRA) and is not currently collecting benefits. FRA is currently 66 for those born between 1943 and 1954. It increases in two-month increments for those born between 1955 and 1959. Those born in 1960 or later will not reach full retirement age until they turn 67.
Full retirement age is the year at which a person first becomes eligible for the primary insurance amount. Social Security benefits can be claimed prior to the FRA, but they will be below the primary insurance amount. Conversely, if claiming is postponed, delayed retirement credits increase the benefits until age 70. The increase in benefits is why conventional wisdom calls for delaying the claiming decision until as close as possible to age 70 for those in good health.
Which IRA Should You Contribute to and When?
Posted on July 3, 2014 | AAII Journal
Contributing to a Roth IRA early in a tax year results in the greatest ending wealth.