Published on Thursday, December 05 2013 09:50
I spend a lot of time helping people understand how much money they will need to meet their retirement goals. Many people rack their brains and do lots of research trying to come up with assumptions for inflation, rates of return on investments, and manyRead more: Planning For A Long Life After Retirement
Published on Thursday, September 05 2013 03:59
With both stocks and bonds gyrating wildly again many of us are reminded of just how volatile the markets can become. This also convinces many people that they cannot risk being invested very heavily in equities as they approach retirement.
But without a decent return, many people simply will not be able to retire when they want to. InRead more: Can Apple Save Your Retirement?
Published on Thursday, February 21 2013 04:12
Since the lows of 2009, the S&P 500 index is up nearly 120%. Before this rally there were those who had been talking about low stock market returns for years to come. With the stock market having rallied so far so quickly, the odds of lower returns going forward might even be higher now.
I want to take a look at how various average returns for the market might impact a typical person’s retirement situation. I will use Monte Carlo analysis in our retirement planning application to run various scenarios where average stock market returns are low for the next twenty years and then revert to historical return levels after that.Read more: Future Stock Market Returns
Published on Friday, June 07 2013 04:33
Bond yields have finally starting moving up as the Federal Reserve has begun hinting that they might reduce the amount of bonds they have been buying. The ten-year treasury yield is now at 2.12%, which is nearly 0.50% higher than we saw a year ago. Of course, we have a long way to go to reach the 5% level we saw in 2007.
Low interest rates over the past five years have undoubtedly hurt those in retirement who wanted to live on a fixed income. In fact, it completely ruined many retirement plans and forced some people back to work. Now that rates have risen slightly I want to take a look atRead more: How Rising Interest Rates Can Impact Retirement Plans
Published on Saturday, December 22 2012 00:00
by Doug Carey
As we get closer to the “fiscal cliff” more politicians have been discussing how to reduce the coming crushing burden of entitlements. Of course, most of those in Congress do not want to be the ones who actually cut anything for fear of losing votes. But one way they can reduce social security payments without calling it a cut, is to change how social security payments are indexed to inflation.Read more: Watch Out For A Change To The Social Security COLA Index