Tag: retirement (page 1 of 2)

Retirement Withdrawals in a Down Market

Market dips are inevitable. If you have been saving for retirement for decades, then you are no doubt aware of market fluctuations and have weathered a few yourself.

Continue reading

Are Index Funds Good Investments For Retirement?

Are index funds good investments for retirement? If you’ve done any amount of reading on investment strategies, you have certainly heard about index investing. In this article I’m going to explain WHAT index investing is and WHY it is such a good strategy for your retirement.

This article goes a little deeper into market theory, so I want to give you the bottom line up front.

  1. Index investing simplifies investment selection. When you invest in an index, you are investing in all of the stocks that make up the index and make no attempt to pick the “best” ones. That is good because picking the out-performers is largely a function of randomness.
  2. You inherently accept the average market return.
  3. Investing in an index can dramatically reduce your investment expenses.
  4. The result is that you end up with the average market return, at a lower than average cost. You’ll be slightly ahead.
Continue reading

What are the Risks of Relying on Dividends for Retirement Income?

What are the risks of relying on  dividends for retirement income? Like most things used in moderation there isn’t anything wrong with dividends, or the stocks that pay them.  In fact, higher-dividend paying stocks are usually older, established, and strong companies. They can be good components of retirement income plans and help provide some diversification in investment portfolios.

The risk comes in their application, and the popular strategy of loading up on dividend paying stocks exposes retirees to more risk than they usually realize.

Continue reading

Asset Location is Important Too

That’s not a typo. Asset location is an often overlooked aspect of retirement planning. That is unfortunate because asset location can significantly affect the after-tax value of your retirement income. I’ll explain what asset location means and how you can use that information to increase your retirement income.

Continue reading

Efficient Withdrawals to Maximize Retirement Income

The purpose of accumulating retirement savings with tax-advantaged retirement accounts is to withdraw an income that will last for the duration of your retired lifetime. Considering this could be thirty or forty years, it’s important to get this right. Efficient retirement account withdrawals can help stretch your savings and achieve this goal.

Clearly then, you should consider efficient retirement account withdrawal strategies that maximize the after-tax value of retirement income. In order to maximize the value of withdrawals from a retirement account, you have a number of options.

Continue reading
« Older posts