Projecting an Aging Parent’s Finances

In assisting my mother-in-law with her finances, one of the things I’ve done is to project how long her savings will last. I’m monitoring her income, spending and savings to ensure she is able to live comfortably now and still has enough to cover future potential living and care expenses. Since it may be of…

 

AAII Survey: Most Readers Not Worried About Running Out of Money in Retirement

Running out of money in retirement is a major concern for older Americans, especially since so many are considerably behind on savings. According to a 2016 Transamerica study, 43% of workers 50 and older claim that their greatest retirement-related fear is outliving their savings. A 2015 survey released by the American Institute of CPAs had…

 

Guidelines for Projecting Retirement Savings

One of the challenges of retirement planning is projecting how much money you will have in the future. For those of us who are many years away from retirement, this a big uncertainty. We can use various tools and calculators, but they often rely on us making assumptions. The assumptions largely focus on three things:…

 

April AAII Journal Update

The April 2018 AAII Journal is Now Available Online.   Feature Article » Are You Spending Too Little in Retirement? by Meir Statman While mental tools and self-control are useful when saving, in retirement, they can stop us from spending on ourselves and family.   Financial Planning » Social Security and Medicare Can Raise Retirees’…

 

Two Concepts That Can Affect Your Returns

Two concepts often left out of conversations about investing are opportunity cost and endowment effect. Though different, they do overlap and can have implications for your portfolio. Opportunity cost is what you forfeit by taking a certain course of action, even if the action is a decision not to act. Every dollar you allocate to…

 

Limiting Required Minimum Distribution Costs

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Retirement Withdrawal Calculator A withdrawal rate is a function of how much money you withdraw from your retirement fund each year. But what if you choose the wrong initial rate? If you choose a rate that is too high, you face possible shortfall risk…

 

The Debate Over Retirement Income Strategies

As millions of baby boomers are either retiring or nearing retirement, there is an ongoing debate on how to manage one’s portfolio heading into and once in retirement. Here’s a glimpse into it: While at last week’s Morningstar Investment Conference, I tweeted a comment made by Morningstar’s David Blanchett about the likelihood of success for…

 

9 Guidelines for Retirement Success

This article originally appeared in the May 2014 issue of the AAII Journal. Now that your once-distant dream of retirement is at hand, it can be an unsettling switch from being a saver to being a spender. It means having an entirely new approach to your money. It can be tough regardless of your financial expertise…