Category Archives: Retirement Planning

Buckets, Cisterns, Asset Allocation, And Retirement – Seeking Alpha

Buckets, Cisterns, Asset Allocation, And Retirement – Seeking Alpha: It is useful to be able to visualize what funding retirement is all about. Rows and columns of numbers on a spreadsheet are a great tool, but sometimes a picture is worth a thousand columns.

This article provides an overview of three ways to visualize what’s going on when you think comprehensively about all of your financial assets for retirement.

Retirees Beware Of The Many Dangers Of Holding Overvalued Stocks – Seeking Alpha

Disclosure: I am long CLMSFTINTCCSCOORCL(More…)
We often write about valuation because we believe it is one of the most misunderstood aspects of investing in common stocks. This causes many people to hold what we consider to be unjustified biases that are based primarily on price action. For example, the concept of the lost decade, which many almost gleefully point to as evidence validating that stocks are poor investments, fail to recognize that the true culprit was overvaluation during the appropriately labeled “irrational exuberance” days.
However, one of the most misunderstood aspects of overvaluation is how wide ranging and relative it is. To clarify, one company can technically be labeled overvalued, but due to other important factors, still be a good investment or even an above-average investment. It all comes down to the degree of overvaluation the market is applying, relative to the potential long-term growth the business is capable of achieving.

Retirement’s 4% Rule: Why Mr. & Mrs. Income Don’t Need It (Part 2) – Seeking Alpha

Retirement’s 4% Rule: Why Mr. & Mrs. Income Don’t Need It (Part 2) – Seeking Alpha: In Part 1, we saw how Mr. & Mrs. Income decided to part ways with conventional advice and target their retirement income needs years before they retired. They saved diligently, placing their money into dividend-growth stocks, a general bond fund, and later into a TIPS fund.
They never made it to $1,000,000. But they did not do badly. At the end of 2010, when their retirement started, they had $950,000 saved up. Here’s a snapshot of how each element is expected to perform. The stock numbers are blended, meaning that they indicate total performance across the stock portfolio.

Retirement’s 4% Rule: Why Mr. & Mrs. Income Don’t Need It (Part 1) – Seeking Alpha

Retirement’s 4% Rule: Why Mr. & Mrs. Income Don’t Need It (Part 1) – Seeking Alpha: Remember the Growths?

In two previous articles, we met Mr. & Mrs. Growth. They were saving for retirement following common practices, including shooting for “The Number” and planning to withdraw from their nest egg during retirement.
Retirement’s 4% Rule: Surprising Answers You Need to Know about the Inflation Factor
Retirement’s 4% Rule: The Importance of Return Sequence

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Retirement’s 4% Rule: Surprising Answers You Need to Know About the Inflation Factor – Seeking Alpha

Retirement’s 4% Rule: Surprising Answers You Need to Know About the Inflation Factor – Seeking Alpha: “The predominant retirement-financing method advocated by investment advisors, fund and ETF companies, AAII, Morningstar, and many pundits is called the “total return” approach. It has two phases:
The accumulation years, during which you save for retirement, targeting a nest egg whose ideal size is known as The Number.
The withdrawal years, when you sell off pieces of that nest egg to obtain the cash you need for living expenses during retirement.”

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Retirement Planning for your child

The New Reality: Retirement Planning For Your Children

It is always a smart idea to teach your kids about saving and investing as early as possible. You give your child the greatest chance at financial success by starting them off while they are still young. It is pretty easy if your use the following tips to execute a financial plan for your child. The following is a guest post by Lisa Cintron.
retirement planning kids
At a time when economic worries have everyone scrambling for financial security, the thought of investing in your child’s retirement may seem absurd. Or does it?
In the past, even a single generation ago, people could rely on Social Security and pensions to get them through retirement. The people who made investments coasted through their retirement, but that was then. Now, facing a job market that no longer offers pensions and a Social Security system on the verge of bankruptcy, people know they must initiate their retirement planning much sooner than every before. Helping your children begin a life of saving and investing in their future is something every parent must do. Simple steps can be followed to make this change in saving habits much easier.
* Start a mutual fund for your child(ren). After the initial investment most mutual funds will allow you to contribute as little as $50 dollars each time you make a deposit. Encourage friends and relatives to make contributions in lieu of large gifts. Require your children to invest a portion of any gift money they receive.
* Reduce amount of money that is used to purchase gifts during the holidays. By investing half the amount you would spend on toys that are soon forgotten. you will be able to amass a substantial retirement account for your children.
* Make deposits automatically. When you have deposits automatically withdrawn from your bank accounts it is easier to manage your money.
* Live beneath your means. This is crucial for saving for your own, and your child’ s futures. You cannot save anything if you spend it all.
* Use tax credit wisely. Every child age 17 and under receives a $1000 tax credit from the federal government. Dedicate this credit to the mutual fund each year, regardless of any other plans you may have for your refund.
* Take advantage of tax deferred state plans. Many states offer tax exempt or tax deferred programs for minors.
* Consult with a certified financial advisor to help you with the execution your plan.
Investing one hundred dollars a month over the course of forty years will generate over a million dollars in savings. If the savings begin when the child is quite small, the investment value is sure to exceed the million dollar mark before retirement age.
By making it a habit to invest into your child’s future, they will also learn to invest. It is imperative to instill into today’s child that they are responsible for their future, and every action must reflect that responsibility.
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