It’s a question often asked by parents, from new parents to grandparents: how much should I be saving for college?
In retirement, one of your primary sources of income will consist of your retirement savings accounts, such as 401(k)s and IRAs. Withdrawing money from those accounts while they’re down can negatively affect the longevity of your portfolio. So, what can you do if you retire in a bear market?
During periods of extreme market declines, a natural emotional reaction can be to “take control” by selling out of the market and seeking safety in cash. This is due to “loss aversion” – or the fact that losses hurt more than gains feel good. The results of this action can be devastating because positive returns are more likely to occur by investing over the long term.
With rising inflation, volatile stock and bond prices, and low interest rates on regular bank accounts, there are few places for investors to store any extra cash.
Let’s be honest: bonds are boring. Their relatively consistent and modest returns lack the daily excitement of erratic stock prices. So, when bonds do make headlines, it may be time to pay attention.
A successful retirement story is a tale of two parts: building a comfortable nest egg and spending an appropriate amount to make it last. Fortunately, your withdrawal rate in retirement is something you control, and you can use it as a crucial lever to avoid outliving your money.
Advance Capital Management’s president and chief investment officer, Christopher Kostiz, provides his key economic and market insights from the most recent quarter.
One important factor you can’t control in your financial life is government policy. And, recently, the Federal Reserve raised its policy interest rate by a quarter of a percentage point.
It doesn’t take a government report to know that prices are higher now than a year ago.
If you’ve filled up the gas tank, ordered a cheeseburger or tried to buy a new couch in the past year, then you’ve probably felt a little sticker shock due to rising inflation.
In the past year, a record number of Americans have put in their resignation letters. They have left to find better jobs, start their own businesses, simply take a break, or retire. All can be good reasons to quit, unless it means tapping your retirement accounts early.
