Retirement
Retirement can be a wonderful time of life, but it also brings new financial questions. For the first time, most people face their income coming from a combination of several sources, as opposed to a single regular paycheck. In addition, questions regarding federal programs, insurance, planned giving, and a variety of other topics become more prominent. Don't be overwhelmed - a good understanding of these issues is half the battle.
Retirement brings many changes, and your investing plan may need altering as well. But today's retirees can't afford the same "clip the coupons" all-bond portfolio their parents retired with. The combination of longer life expectancies, lower interest rates, and a greater reliance on their own savings require a new strategy. Learn how taking a total return approach to your portfolio can combat both volatility and inflation, as well as how to get regular income from your portfolio and protect your IRAs from high taxes.
The question of when to start receiving Social Security benefits is one that perplexes many seniors. We examine the tradeoffs between starting early and waiting to receive a higher monthly benefit, focusing on six key considerations you should take into account.
Statistics indicate those 65 and older face a 70% chance of someday spending at least some time in a nursing home. With the cost of that care averaging $73,000 per year, long-term care insurance has become an increasingly prominent retirement issue.
When retirement finally arrives, the #1 question in most people's mind shifts from "How much do I need to retire?" to "How much can I spend without the money running out eventually?" Here's one approach to answering this tricky question.
Turning an investment portfolio into regular cash flow can be one of the trickiest issues retirees face. In some cases, it can make a big difference which types of accounts you draw from first.
Reverse mortgages are a useful tool in unlocking the equity stored in a home, but it's important to understand what you're signing up for. Here are answers to 7 key questions concerning these backwards loans.
Most charitable gifts are pretty simple — you give, the charity receives. But how about a gift with an extra wrinkle — you give, the charity receives, and you get monthly income back from the charity for as long as you live?
Switching from decades of accumulating a retirement nest egg to actually living off of that savings is a tricky transition for many retirees. To make it simpler, some of the larger mutual fund companies are introducing new products that offer to manage the process for you. We evaluate whether that's an offer you should accept, or if you're better off handling it on your own.
The way you divide your portfolio between stocks and bonds has a bigger impact on your eventual returns than any other single decision. Has the difficult first half of 2008 driven you out of stocks? Or are you persevering, trusting the traditional superiority of stocks will once again reassert itself? In this article, we look at historical patterns and how they can be used to guide your portfolio allocations as you plan for retirement.
Many people think of AARP as a sort of "discount program" for seniors. But it's much more than that—it's a powerful political and lobbying force. When AARP exerts its influence, does it really represent your viewpoint? If not, there are plenty of other retiree organizations ready to stand in as alternatives.
Treasury Inflation Protected Securities (TIPS) have been on the scene for a decade now, yet many investors remain unaware of the diversification and inflation fighting potential these bonds can add to a portfolio. We explain how these unique bonds work and offer two easy ways to invest.
When a loved one falls ill or passes away, the last thing those who are grieving want to do is wade through an abyss of disorganized financial records. A little forethought here can be a final loving gesture to those that come along after you.
One of the most important, and irrevocable, financial decisions many people ever face is how to receive their money from a company retirement plan. Here's a simple three-step process to help you evaluate this crucial decision.
Most investors are aware of the tremendous advantage tax-deferral within an IRA can make over their lifetime. But far fewer realize that a single simple step can extend that powerful tax advantage long after their death, potentially providing family wealth that could last for generations. We explain how in this discussion of "stretch" IRAs.
If you think the new Pension Act recently signed into law doesn't affect you because you don't have a pension, you need to take a closer look. Not only does the new law impact employer retirement plans, like 401(k)s, it may make a significant impact on your personal savings as well.
For most investors, bond funds represent the "safe" part of their portfolio. But there's nothing safe about owning bond funds when interest rates are rising. Thankfully, there is a way to insulate your bond investments from rising interest rates—by owning individual bonds and holding them through maturity.
Investing for growth is easy — buy stocks, and buckle up. But investing for regular income can be trickier. Come along as we examine how to combine Vanguard bond funds in six simple ways, keeping our eye on both risk and return.
When it comes to retirement planning resources, Vanguard has compiled an exceptionally helpful website. Here's a walkthrough of what you'll discover there and how it can help you with your planning needs.
Variable annuities are often sold as retirement planning devices that can save you money on taxes. What's often left unsaid is they often provide subpar investment returns due to their high fees. Here are 7 tests to help determine if a variable annuity makes sense in your situation.
As the baby boom wave of retirees approaches, the financial services industry is increasingly pumping out products designed to convert a lifetime's worth of savings into a reliable stream of income. We look at some of the new wrinkles among these annuity-based products, and examine some of the pros and cons associated with various strategies for generating retirement income.
