If you have $600,000 saved toward retirement can you retire? It may be possible. It really all depends on what is important to you in retirement and how much income you need for a comfortable retirement.
To figure out if $600,000, or any amount, is enough for you to retire on you’ll need to consider things like your withdrawal strategy, investments, taxes, and other sources of income. Continue reading
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? 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.
- 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.
- You inherently accept the average market return.
- Investing in an index can dramatically reduce your investment expenses.
- The result is that you end up with the average market return, at a lower than average cost. You’ll be slightly ahead.
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
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