Research has shown that many American workers —
even those approaching retirement — lack even a rudimentary retirement plan.
Whether you are years from retirement or
even approaching retirement, you may find it worthwhile to consider a Roth IRA conversion — either for yourself or to potentially leave tax - free assets to heirs.
That's because most American families,
even those approaching retirement age, have little or no retirement savings.
Not exact matches
Even as you
approach retirement, it still pays to maintain a significant portion of common stocks in your portfolio.
But don't forget that growth remains important
even as you
approach and then enter
retirement — after all, your
retirement could last 3 decades or more.
Even for the ultra-wealthy, the need to pull back on risk as
retirement approaches is a critical part of investing and one too many investors neglect.
This is how you should
approach retirement investing and start,
even if in small amounts, so the stocks you're investing in can grow over time and help secure a suitable
retirement.
Even with this
approach, you won't be able to pin down your future
retirement costs or income needs to the penny.
(In fact,
even if you're
approaching retirement age with a nest egg smaller than you'd like, there are better ways to improve your
retirement prospects than by taking on more investing risk, which could backfire and leave you worse off.)
The problem with this
approach is that while your children have the option to borrow money for college, you can't as easily take out loans to fund your
retirement (and
even if you could, they'd wind up being far more costly than your typical student loan).
While many people
approaching retirement have actively adjusted their
retirement plan to take into account recent economic uncertainty and market volatility, few recognize that an
even bigger threat to their
retirement nest egg is unrealistic expectations.
Pat also explains why, in
retirement even more than in your earlier investing career, your
approach should not simply be «buy - and - hold», but «buy and watch carefully.»
The advantages of following Mort's
approach are: It more quickly provides the security of debt - free home ownership, which will better enable you to weather any economic storms; in case of an emergency, the wealth in your home is more accessible than assets tied up in a
retirement plan; and while Rob's return in the 401 (k) could fall or (
even turn negative), Mort's interest savings on his mortgage is guaranteed.
Assuming you are using the mindful bucket
approach described above (80 % stocks in the vulnerable period ascending to 100 % for the rest of
retirement), a 3.5 % inflation adjusted withdrawal rate is very likely to ensure you have sufficient money in
retirement,
even over 60 years.
But don't forget that growth remains important
even as you
approach and then enter
retirement — after all, your
retirement could last 3 decades or more.
*** But
even if you are
approaching retirement, you may still need to maintain some growth - oriented investments as a hedge against inflation.
Darian's level - headed and hugely risk - tolerant
approach to investing has netted him a more than $ 600,000 portfolio,
even though he's only 52 and still roughly a decade out from
retirement after a quarter century running his own local grocery store.
Readers often ask me whether the Couch Potato strategy is suitable for investors
approaching retirement, or
even those who have stopped working.
Then a student
approached him at a reception afterward and told him why he and his classmates are largely indifferent to employee benefits such as 401 (k) contributions: They have so much student loan debt to pay off, it will be years before most of them can
even think about
retirement savings.
This is
even more important as you
approach retirement because there is a good chance you will not be able to replenish the
retirement accounts and the loss of compounding in those accounts.
For many,
retirement may span
even longer,
approaching 30 to 40 years.
Even if you don't fully replicate the strategy, it's food for thought when it comes to how you
approach retirement planning.
«This is
even more important for the huge cohort of baby boomers rapidly
approaching retirement who may find that they have little or no wealth to support them in
retirement beyond Social Security.»
Todd Tresidder of The Financial Mentor believes that with this three - pronged cash flow
approach,
even queer people who have waited until their 40s or 50s to start preparing for
retirement can adequately prepare for
retirement and eliminate financial insecurity in their later years.