I’m taking a new twist this week, and incorporating some of the best articles I’ve read in the past few days on issues related to financial planning for retirement. Rather than read dozens of articles yourself, I’ll plan on sending out occassional “Best Of” summaries to save you the work!
Let me know if you like the approach.
10 Financial Milestones To Achieve in your 40’s and 50’s
Investorjunkie is one of the blogs I read on a regular basis. This checklist by Kevin Mercadante is consistent with articles I’ve written for The Retirement Manifesto, and highlights 10 things you should do in your 40’s and 50’s to prepare for a great retirement.
3 Ways Baby Boomers Can Dramatically Improve Their Retirement Outlook
According to this article from The Motley Fool, only 27% of boomers feel confident they’ll have enough money to last through retirement. This article looks at ideas to close the retirement funding gap and improve your retirement outlook.
Why U.S. Stocks are too pricey to be a great investment
This Fortune article compares various “valuation” techniques, and concludes equities are over-valued. A “snap back” to more typical valuations is likely, and could negatively impact projected returns for years to come. Research Affiliates, the author of the study, concludes equities could have a real return of only 1% over the next decade, and cautions those nearing retirement to use conservative return estimates in their cash flow planning.
The Biggest Threat to your retirement number
This article, from the USA Today, focuses on the very real risk of a market downturn in your early retirement years. This “sequence risk” could have devastating consequences on your investment portfolio’s ability to fund your spending needs through retirement. To minimize the risk, plan on reducing your spending in years following market downturns.