Month: January 2016

The New Retirement Environment

The New Retirement Environment, part 5 of 5 taken from the entire episode of Right on the Money, Conservative Investors and Savers. Synopsis For most Americans, Social Security is the primary resource of retirement funding. From 1975 to 2009, Social Security recipients received a cost of living adjustment. But for the first time in its history, no cost of living adjustment was declared in 2010 and 2011, and again in 2016. In tough times, retirement portfolios can have difficulty generating sufficient income to fund the basic lifestyle of seniors, much less generating an increase to cover rising costs of...

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The Five Fears of Retirement

The Five Fears of Retirement, part 4 of 5 taken from the entire episode of Right on the Money, Conservative Investors and Savers. Synopsis The five risks of retirement are: inflation, market volatility, the sequence of returns, health and longevity. Medical advances, lifestyle behaviors and a vision of purpose are fueling the new mortality revolution. That’s the good news! The bad news is longevity in and of itself is not just a retirement risk, but also a risk multiplier. It can exacerbate the other retirement risks that could cause financial instability for retirees. Content Inflation has been relatively low...

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Social Security Checkmate

Social Security Checkmate, part 3 of 5 taken from the entire episode of Right on the Money, Conservative Investors and Savers. Synopsis When you’re deep into the game, there are only so many moves left on the board. If Social Security is to remain part of our retirement culture, it must change because of the immutable truth of the math, not because of the politics. You can extend the full retirement age. You can raise FICA contributions. You can reduce benefits. You can eliminate recipients through means testing. Every idea is on the table. Content The worst first: Imposing...

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Staying Engaged in the Market while Mitigating Risk

Staying Engaged in the Market while Mitigating Risk, part 2 of 5 taken from the entire episode of Right on the Money, Conservative Investors and Savers. Synopsis Some advisors call the S&P 500 Index the “poor investor’s portfolio,” meaning it’s easy to understand and relatively inexpensive to own. But even savvy and sophisticated investors buy the S&P 500 via mutual funds or ETFs as an anchor to their portfolio. Although the S&P 500 is a broad and diversified investment, it’s exposed to market volatility just like any equity. Bottom line? You can lose money. Content A fixed indexed annuity...

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Market Mayhem Sends Many to the Sidelines

Market Mayhem Sends Many to the Sidelines, part 1 of 5 taken from the entire episode of Right on the Money, Conservative Investors and Savers. Synopsis Sometimes turbulent markets send gun-shy investors searching the sidelines for some shelter. On the sidelines, fixed interest rates products haven’t generated much of a return. Last year, the Fed bumped interest rates a quarter of point, but so far savings accounts haven’t mirrored the rate increase. Tax-deferred annuities may be the next alternative for many to consider. Content Online banking generally advertises the highest interest rates on jumbo certificates of deposit (CD) i.e.,...

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