At the end of October, the S&P 500 was up 24.39% in the past 12 months. What investor wouldn’t want gains like that? As uplifting as that market advance was for many, some baby boomers missed out on it. They were simply too afraid to get back into stocks – they couldn’t dispense with their
Why do some people let their potential for lifetime wealth slip away? Some people are better off economically at 30 or 40 than they are at 50 or 60. In some cases, fate deals them a bad hand. In other cases, bad decisions and inaction are to blame. They buy depreciating assets, instead of allowing
Why reroute dividends back into your investments? Isn’t taking the income the preferred outcome when a dividend is produced? Retirees and pre-retirees are eager for dividend income in this era of historically low interest rates. Even so, the choice to buy more shares has merit for the long run. Reinvestment & compounding may have profoundly
Why do so many retirement savers underperform the market? From 1993-2012, the S&P 500 achieved a (compound) annual return of 8.2%. Across the same period, the average investor in U.S. stock funds got only a 4.3% return. What accounts for the difference? One big factor is impatience. It is expressed in emotional investment decisions.
There is no “typical” retirement. Many baby boomers want one and believe that they will have one, and their futures may indeed unfold as planned. For others, the story will be different. Just as there is no routine retirement, there are no rote financial moves that should be made before or during this phase of
Have you invested too much of your 401(k) in company stock? This can happen – and you may not be fully aware of it. Back when corporations offered traditional pension plans, the federal government watched out for this tendency. In 1974, the Employee Retirement Income Security Act (ERISA) made it illegal for pension plans