The Myths and Realities of Retirement Planning

The Mathematics of Retirement Portfolios This article deals with several important retirement questions: “How much money do I need in my investment portfolio at the start of retirement?” and “How much can I safely withdraw from my investment portfolio during the retirement years?” A Do-It-Yourself Approach to Target Date Retirement Investing Target date mutual funds…

 

Reviewing Readers’ Predictions for 2018, Looking Ahead to 2019

This week’s AAII Weekly Digest highlights these “must-read” AAII articles: Financial Literacy Tied to Greater Retirement Savings An analysis of employee retirement plans found evidence supporting a link between greater financial literacy and greater retirement wealth. Those who are more literate about financial and investment concepts allocate more to stock funds, own portfolios with higher…

 

Gauging Your Psychological Readiness for Retirement

Revisiting the Risks of Retirement Spending Rules In this update to a 1998 article, we discuss the risks of spending only portfolio income, spending returns or making inflation-adjusted withdrawals. Illustrating the Value of Retirement Accounts Two examples show the considerations to be taken into account when deciding between a taxable account, a traditional IRA and…

 

Future Retirees at Greater Risk of Hardship

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Future Retirees at Greater Risk of Hardship Most current retirees appear able to withstand some type of financial shock. Future retirees may have more difficulty doing so due to changes in the retirement system, says a research fellow at the Center for Retirement Research…

 

Actions to Take During the Five Years Prior to Retirement

Actions to Take During the Five Years Prior to Retirement Transitioning to retirement from a working career is a challenge for many people. To help, The New York Times interviewed financial advisers, economists and retirees to create what they described as a “five-year countdown to retirement.” We’ll share their suggestions along with a few comments…

 

Retirement Planning Mistakes Investors Often Make

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Retirement Planning Mistakes Investors Often Make Planning for retirement is commonly focused on the accumulation of wealth. While building up savings prior to retirement is critical, having a plan for transitioning to and living in retirement is also important. It is in this second…

 

Key Questions About When to Retire

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Stocks: An Underappreciated Asset Class in Retiree Portfolios More older Americans than ever before are pursuing second careers in retirement, engaging in their communities through volunteer work, and living healthy, active lifestyles. Yet when it comes to managing their investments, too many retirees are…

 

Future Retirees at Greater Risk of Hardship

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   The Impact of Out-of-Pocket Medical Spending on Retiree’s Income A major cost for retirees is health care. Though most retirees over age 65 are enrolled in Medicare, out-of-pocket costs can still be significant. An analysis of data included in the 2002–2014 waves of the…

 

Retirement Planning Strategies Following the 2017 Tax Act

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Common Questions About Medicaid and Medicaid Planning State and federal governments continue to tinker with Medicaid eligibility and spend-down rules. Estate planning and gifting strategies can be used to preserve assets, while still allowing a person to maintain eligibility for Medicaid. Retirement Planning Strategies…

 

Retirement Readiness Is Being Assessed in the Wrong Manner

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   The Mathematics of Retirement Portfolios This article deals with several important retirement questions: “How much money do I need in my investment portfolio at the start of retirement?” and “How much can I safely withdraw from my investment portfolio during the retirement years?” Retirement…