Got enough money for retirement? Do you know how you'll create your retirement paycheck? How do you turn that 401(k) or IRA into a sustainable stream of income? Now's the time to go back to school and learn a lesson or two from the Big Boys and be like Harvard. Whether or not you went to an Ivy League school like Harvard, you sure can invest like you did. One thing that Harvard and a retiree ... Read More
Retire in A Day Series
Ask the Adviser: When Can I Retire?
Will working longer and deferring retirement allow me to have more money when I finally retire? Question: I'm 54 now and was originally planning on retiring at 65. My 401K took quite a hit a few years ago and now I'm wondering if I should be postponing my retirement. Boston Money Coach Answer: They say that time heals all wounds and sometimes it even helps salvage a 401(k) as well. You may ... Read More
Too Many 401k Choices Can Be A Problem for Retirement Planning
Like a deer caught in headlights, individuals faced with too many choices in their company-sponsored plan freeze up and may end up taking no action for their retirement. They may end up making costly choices - or worse, no choices - for their retirement savings dollars. Common costly choices typically include buying too much company stock or a mutual fund representing the same industry of the ... Read More
Ask the Adviser: Why Should I Rollover My 401k From My Old Job?
There are many valid reasons to consider a 401k rollover. Costs While it may not seem like it, you are paying for your funds to stay with your old employer’s sponsored plan. You just don’t see it. Fees for employer plans are not very transparent. While you may not see an actual bill, your employer is probably paying for the administration of the plan through hidden fees assessed on the ... Read More
New Year’s Resolutions: Money Tips for Staying on Track
The other day I was contacted by Evan Lips, a reporter from the Lowell Sun who was doing a timely article on financial planning tips for the new year. He had spoken to other financial planners and investment representatives and he had a wide range of opinions provided by them. These included ways to manage credit to savings to kinds of investments to use for a retirement account. Because ... Read More
Watership Down, Thanksgiving Turkey, Retirement, Risk and Modern Finance
What could possibly link the children's story of Watership Down, Thanksgiving turkey and retirement investing risks? Well, my mind works in strange ways (just ask my wife and I'm sure my 15-month old Spencer agrees as well). Buy and Hold - A Broken Promise? After all the troubles in the stock market and in financial markets in general over the past couple of years, I was recently rereading an ... Read More
Ask the Adviser: What are the biggest issues new retirees tend to underestimate?
It's easy to get tripped up in retirement. I'm reminded of the expression by the octogenarian to the recent newlywed fretting about life but rejecting out of hand the advice of his experienced senior: A long time ago I was where you are now. And later you'll be where I am now. But just as you haven't been your age before, I've never been old before. So for new retirees who "not been there or ... Read More
Ask the Adviser: What’s a Market Linked CD and Are There Risks?
It's natural for investors who are still skittish after a decade-long roller coaster ride with the stock market and plummeting real estate values to be risk averse and seek out investment alternatives for protecting their nest eggs for retirement, college funding or simply their emergency cash. And where there is demand, there will be supply. So naturally, financial firms will design products ... Read More
Retirement Income Planning – The Impact of Emergency Withdrawals
Recent academic research by Gordon Pye on the impact of emergency withdrawals on retirement planning may put into question the rule of thumb used by many advisers to determine a safe, sustainable withdrawal rate. For many investors and their financial advisers, the accepted rule of thumb has been to withdraw no more than 4% of an investment portfolio in any given year to provide a sustainable ... Read More
Ask the Adviser: Paying for College by Shifting Assets – Worth the Trouble?
As noted in previous articles and posts, whether or not your student qualifies for federal financial aid for college will depend on the Expected Family Contribution (EFC) calculation. Typically, almost all assets and income are included in this calculation by financial aid officers. There are exceptions to all rules and in this case, federal aid formulas (under the "Federal Methodology") exclude ... Read More
