News

14
May

4 Steps You Can Take to Feel More in Control Now

4 Steps You Can Take to Feel More in Control Now COVID-19 has upended life as we know it for millions of people around the world. Many of us—including the young and healthy—are seriously contemplating our mortality for the first time. As the parent of a toddler, with a baby on the way, I’m definitely in this camp. It’s deeply

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21
Apr

Concerned about market volatility? Here’s one way to protect your retirement savings.

Concerned about market volatility? Here’s one way to protect your retirement savings. Now that we’ve entered a bear market for the first time since 2009, many pre-retirees are likely asking questions about the impact on their retirement savings. Will the stock market sell-off wipe out years of growth in their 401(k)s? Are there any steps that can be taken to

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13
Apr

Life (Insurance) in the Time of COVID-19

Life (Insurance) in the Time of COVID-19 As the COVID-19 pandemic has spread, we’ve been bombarded with reminders of our own mortality. It has reinforced the idea that illness and death can come at any time, and that has some people thinking seriously about life insurance. If you’re wondering if you have enough life insurance, you may also be wondering

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8
Apr

Is Buying an Annuity in a Zero Interest Rate Environment a Good Idea?

Is Buying an Annuity in a Zero Interest Rate Environment a Good Idea? The Federal Reserve’s decision to cut its benchmark federal funds rate from 1% to a range of 0% raises significant questions for those reassessing their retirement nest egg—a common occurrence following a dramatic selloff in equities according to research conducted by Indiana University’s Alessandro Previtero —and the

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3
Apr

Is Buying an Annuity in a Bear Market a Good Idea?

Is Buying an Annuity in a Bear Market a Good Idea? In Safety-First Retirement Planning: An Integrated Approach for a Worry-Free Retirement, I explain how including annuities with lifetime income protections alongside other investments can lay the foundation for a more robust retirement income plan that is less vulnerable to market downturns and outliving savings. As the stock market experienced

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1
Apr

Adjustments For A Conservative Return Assumption

Adjustments For A Conservative Return Assumption Consider three scenarios: An individual investing a lump-sum amount for thirty years An individual saving a fixed percentage of a constant inflation-adjusted salary at the end of each year over a thirty-year accumulation period An individual withdrawing the maximum sustainable constant inflation-adjusted amount from a portfolio at the start of each year over a

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27
Mar

A Guide to a Conservative Return Assumption

A Guide to a Conservative Return Assumption A simple approach for building a financial plan is to decide on a rate of return for the investment portfolio and to plug that value into a spreadsheet to represent assumed asset growth. Historical data may be used to calculate historical average returns for different asset classes, which are then combined to create

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24
Mar

Planning For The Future – What About Bond Yields?

Planning For The Future – What About Bond Yields? Adjustments for Current Bond Yields An important consideration is that current interest rates are lower than the historical averages. The historical average return is not relevant for someone seeking to estimate future market returns from today’s starting point. The general problem with attempting to gain insights from the historical outcomes is

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19
Mar

What To Do When Markets Plummet – Investor Behavior Gap

What To Do When Markets Plummet – Investor Behavior Gap Another concern is whether investors are disciplined enough to stay the course with the investment strategy in order to earn the underlying index market returns. Studies on retirement spending from investment portfolios typically assume that retirees are rational investors who rebalance right on schedule each year to their rather aggressive

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18
Mar

A Financial Lifeline You May Have Forgotten About

A Financial Lifeline You May Have Forgotten About So much has happened in the last few days and weeks that I feel like months have passed. Social distancing is now on everyone’s lips. And the goal is noble: flatten “the curve” and prevent more people from getting sick from the Coronavirus. The impact, though, is being felt in so many

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