Do you know the difference? Traditional Individual Retirement Accounts (IRA), which were created in 1974, are owned by roughly 33.2 million U.S. households. Roth IRAs, however, were created as part of the Taxpayer Relief Act in 1997, are owned by nearly 22.5 million households.1 Both are IRAs. And yet, each is quite different. Know the […]
Category: Retirement
Saving Early & Letting Time Work for You
The earlier you start pursuing financial goals, the better your outcome may be. As a young investor, you have a powerful ally on your side: time. When you start investing in your twenties or thirties for retirement, you can put it to work for you. The effect of compounding is huge. Many people underestimate it, […]
Should You Care What the Financial Markets Do Each Day?
Focusing on Your Strategy During Turbulent Times. Investors are people, and people are often impatient. No one likes to wait in line or wait longer than they have to for something, especially today when so much is just a click or two away. This impatience also manifests itself in the financial markets. When stocks slip, […]
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How Women Can Prepare For Retirement
A practical financial checklist for the future. When our parents retired, living to 75 amounted to a nice long life, and Social Security was often supplemented by a pension. The Social Security Administration estimates that today’s average 65-year-old woman will live to age 86½. Given these projections, it appears that a retirement of 20 years […]
Pullbacks, Corrections, and Bear Markets
What’s the difference? What do these terms mean for you? The COVID-19 outbreak has put tremendous pressure on stock prices, prompting some investors to blindly and indiscriminately sell positions at a time when the entire market is trending lower. Worried investors believe “this time it’s different.” When the market drops, some investors lose perspective that […]
Your Changing Definition of Risk in Retirement
Some things to consider. During your accumulation years, you may have categorized your risk as “conservative,” “moderate,” or “aggressive,” and that guided how your portfolio was built. Maybe you concerned yourself with finding the “best-performing funds,” even though you knew past performance does not guarantee future results. What occurs with many retirees is a change […]
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Retirement Wellness
Staying healthy could save you some money. How healthy a retirement do you think you will have? If you can stay active as a senior and curb or avoid certain habits, you could potentially reduce one type of retirement expense. Each year, Fidelity Investments presents an analysis of retiree health care costs. In 2019, Fidelity […]
Insurance Needs for Empty Nesters and Retirees
Thinking about coverage as you enter a new phase. With the children now out of the house, financial priorities become more focused on preparing for retirement. At this stage, you may very likely be at the height of your earning power and fast approaching peak savings as you lay the groundwork for retirement. During this […]
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Reducing the Risk of Outliving Your Money
What steps might help you sustain and grow your retirement savings? “What is your greatest retirement fear?” If you ask any group of retirees and pre-retirees this question, “outliving my money” will likely be one of the top answers. In fact, 51% of investors surveyed for a 2019 AIG retirement study ranked outliving their money […]
Measuring the Value of a Financial Advisor
One study asserts that these relationships can make a difference for investors. What is a relationship with a financial advisor worth to an investor? A 2019 study by Vanguard, one of the world’s largest money managers, attempts to answer that question. Vanguard’s whitepaper concludes that when an investor works with an advisor and receives professional […]