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Retirement Planning Checklist

Whether the day you stop working is a decade away or around the corner, these to-do items will help you retire on your own terms. by: Sandra Block, Kiplingers, May 26, 2021 “Ideally, you should start planning for retirement the day you receive your first paycheck. But in reality, most of us don’t focus on…

Getting to Retirement: Common Sense from The Humble Dollar

“HOW DO WE GET from here to retirement? Amid the financial markets’ daily turmoil, it might seem like one big crapshoot.” “But in truth, navigating this journey is pretty straightforward, because there are just five key variables—our time horizon, current nest egg, savings rate, target nest egg and investment return.” Jonathan Clements (https://humbledollar.com/)provides solid, easy…

Retiring in a Bear Market?

No one knows when the coronavirus will subside… when financial markets will level off… when gut-wrenching volatility will settle down.What can you do as you prepare to retire?Focus on things you can control!Thanks to Wall Street Journal writer Glenn Ruffenach for this advice written in December 2018:Firm up your spending plan (aka budget).Reduce your debt.…

Stock Market Volatility

The wild swings in the financial markets are enough to scare any investor. With huge drops followed by big gains and then further drops… what is an investor to do?First let’s review what’s happening. It is NOT individual investors making buy/sell decisions that drive financial markets. It’s the computerized models of the major investment houses…

To ease stock-turmoil jitters, try these strategies

Writing for The Wall Street Journal (3/9/20), Anne Tergesen interviewed Dr. Wade Pfau, a leading investing researcher and professor at the American College of Financial Services. For investors far from retirement, there is no need to panic but now is a good time to review your asset allocation. But for those nearing or in retirement,…

Seven Days to a Better Retirement

The 7 days to retirement challenge is brought to you by The New York Times! Writer Ann Carrns explains the process and why you need to start now. https://www.nytimes.com/2019/11/06/business/not-yet-ready-for-retirement-give-us-one-week.html?te=1&nl=your-money&emc=edit_my_20191111?campaign_id=12&instance_id=13780&segment_id=18703&user_id=bde4c6c63beab087f13b761e1ee9fe1e&regi_id=83720664 “In the shuffle of immediate priorities, don’t push off planning for what could be the best chapter of your life. Get a week’s worth of simple…

How much do you need to retire?

The “Rule of 25” says you should multiply your total annual expenses by 25 to determine how much you’ll need to have saved by the time you retire. So if you plan to spend $50,000 per year in retirement, you’ll need to save $1.25 million. To have $100,000 per year to spend, you’ll need $2.5…

Retire Early? Work Forever? Both Are Wildly Unrealistic

Writing for Barron’s, Sarah Green Carmichael interviewed Teresa Ghildarducci, the Irene and Bernard L. Schwartz Chair in economic policy analysis in the economics department at the New School, and the author of How to Retire with Enough Money: And How to Know What Enough Is. Regarding the FIRE (financial independence retire early) movement, Ghildarducci said: …

Sequence of Returns Risk in Retirement

Many have heard that it is “safe” to spend 4% of one’s nest egg (adjusted for inflation) each year in retirement, expecting funds to last for a 30 year retirement.Michael Kitces explains both the up and down side risk:https://www.kitces.com/blog/url-upside-potential-sequence-of-return-risk-in-retirement-median-final-wealth/There are many reasons for adjusting one’s spending during a lengthy retirement rather than expecting to spend…

Quick and easy retirement calculator

Writing for The Squared Away Blog, one of my favorites, author Kim Blanton describes a new online tool from Vanguard to help near retirees and retirees figure out how long their savings will last. She explains the tool and reviews some of the limitations of online calculators. Read her blog: https://squaredawayblog.bc.edu/squared-away/how-long-will-retirement-savings-last/Keep in mind that the…