Investment and Retirement Insights
More and more 401(k) investors are opting to be hands-off. A recent report by the Investment Company Institute and the Employee Benefits Research Institute found that more than half of 401(k) participants were invested in a target-date fund at the end of 2016.
But not all 401(k) participants are following that trend. Just 21% of all 401(k) assets are in target-date funds, so many 401(k) investors have clearly opted to take a hands-on approach with at least a portion of their portfolios.
The road to retirement is full of obstacles, but knowing what lies ahead can help you successfully overcome them. Think of a retirement plan as a road map (in the days before GPS) that will help you avoid wrong turns, like not taking advantage of a 401(k), forgetting about significant costs in retirement, and forgetting about your desired retirement lifestyle.
James McGlynn
You can think of retirement as having four phases. Want to make sure you make the right decisions at the right time? An age road map can help.
How much income will you need in retirement? Are you on track? Compare what you may have to what you will need. Use the sliders to see how small changes today could affect your financial future.
In the on-going saga of Trump's trade war with China, emerging markets are getting the short end of the stick.
Emerging markets (EM) net capital flows reached negative $35.8 billion in June, according to data from the Institute of International Finance. To boot, investors had already pulled some net $19 billion out of EM as of the month before.
It's been an ugly week, but we've seen uglier. Market down 5 of the last 7 days. But we're only 2.4% below the most recent high water mark. In the grand scheme, that's nothing. I expect the bulls to mount another charge and once again take the high ground. But let's face it - this bull is tired. It needs fuel (a catalyst) if it's going to keep going higher.
Ten thousand Americans retire every day. And they do it in 10,000 different ways.
With such infinite possibility comes boundless anxiety, which is why no financial rite of passage inspires more hope — or dread — than retirement.
What does retirement even mean in 2019? To many, it still marks the beginning of the end of life, a ride off into the Sun Belt in a golf cart (or hearse). But now that we are living, working and loving longer than ever before, retirement might be better described as the end of midlife. The typical retirement lasts decades, far longer than we spend in school, longer even than some careers.
In a recent column, we looked at how relatively easy it is for a 25-year-old to save well above $1 million by age 70 in a 401(k) account. But to succeed, you must avoid committing a common gaffe: allocating too much to bonds and cash too soon. That mistake can torpedo the best retirement planning.
To reach retirement in solid financial shape, you likely need to up your savings game today.
Vanguard reports that the median 401(k) contribution of American workers is 6% of pay. After adding in the median company matching contribution, the total workers are setting aside falls just short of 10%.
That may not be enough. Vanguard recommends a total contribution rate of between 12% to 15% of salary.
With the stock market hitting record highs and summer in full swing, it can be easy to forget your 401(k). But if you want to maximize your gains, investing experts say there are a few moves you should make before Labor Day.
More than half (56%) of American adults don’t know how much money they’ll need to retire, according to data from Northwestern Mutual’s 2019 Planning & Progress Study.
That’s alarming. Without understanding how much money they’ll actually need, many people are failing to effectively save for retirement, Emily Holbrook, senior director of planning at Northwestern Mutual, tells CNBC Make It.
BlackRock Investment Institute
Click here for full report
We see challenging crosscurrents ahead. Macro uncertainty is rising amid geopolitical frictions, and asset prices are up. Yet monetary policy has pivoted toward easing and many risk asset valuations still look reasonable. This leads us to lower our growth outlook and become modestly more defensive while still favoring selected risk assets.
INVESTORS FREQUENTLY make the same mistake when deciding how much to invest for retirement: They confuse "should" with "can." How much you should invest is not dependent on how much you can invest.
If you're fortunate enough to have access to a 401(k) through your employer, take full advantage of it. Only around 53% of workers over the age of 22 have access to a defined contribution plan, such as a 401(k), according to a Pew survey. Of those who have access to this type of plan, however, only 38% actually participate.
In light of cultural and economic changes, it makes sense that a lot of young people can’t easily imagine where they’re headed. Here’s how to make sure you’re prepared for a variety of outcomes.
The Russell 2000 Index lagged badly in the first half of 2019, stuck in a sideways pattern at the 200-day exponential moving average (EMA), but it could play catch-up with broad benchmarks in the third quarter.
Retirees will collectively lose an estimated $3.4 trillion in potential retirement income, or an average of $111,000 per household, because they claimed Social Security at a financially sub-optimal time, according to new research out today by fintech United Income.
It's never too early to start thinking about or begin investing for your retirement. Learn 12 tips on how to invest for retirement in 2019 today.
Each type of retirement benefit has a different eligibility age. Your age plays a big role in how much you can expect to receive from Social Security and what you need to do to avoid retirement account penalties. Remember to factor these important ages into your retirement plan.
Ted Benna can give you a 401(k) tip or two. He invented the nation's popular retirement vehicle after all. And here's a warning for you: If you're like most people, you're not getting the max out of your 401(k), he says.
