Retirement & Financial Planning 02 (Aug 14 - Dec 24)

[winston]

Should You Pay Off Your Mortgage Before Retirement?

by Maurie Backman

Source: The Motley Fool

http://dailytradealert.com/2018/02/04/p ... etirement/

[winston]

The 4% rule for retirement savings desperately needs to be modernized

By Angie O'Leary

In 1994, financial adviser William Bengen introduced the concept of the 4% rule, which found that retirees who withdrew 4% of their retirement portfolio balance, and then adjusted that dollar amount for inflation each year thereafter, would create a paycheck that lasted for 30 years.

The most significant issue with the 4% safe withdrawal rate is that there are just too many unknowns for the retiree:-
1. How long will you live?
2. How will the financial markets perform?
3. Where are interest rates and inflation rates going?
4. What will your retirement expenses actually be and how will they change over time?
5. What about your health care needs?
etc.

Source: Market Watch

https://www.marketwatch.com/story/the-4 ... yptr=yahoo

[winston]

Unlocking the code of your financial freedom

by Yap Ming Hui

Financial Freedom: “An optimum financial position whereby your wealth is optimised to match your optimum financial needs and wants.”

In order to achieve financial freedom, one has to understand and manage the five essential elements of financial freedom – spending, inflation, ROI, time and saving.

Source: The Star

https://www.thestar.com.my/business/bus ... 0bzQrWy.99

[winston]

If You Can’t Answer These 3 Questions, Your Retirement Could Be in Serious Trouble

by Christy Bieber

Source: Motley Fool

https://dailytradealert.com/2019/02/19/ ... s-trouble/

[winston]

I Call BS On Needing $1 Million To Retire (And Other Bad Retirement 'Rules')

Today's retirement advice badly needs a facelift.

By Ann Brenoff

Source: Huffington Post

https://www.huffpost.com/entry/1-millio ... 56051e850d

[winston]

I retired at 34 with $3 million—here are 5 downsides of early retirement that no one tells you

by Sam Dogen

Source: CNBC

https://www.cnbc.com/2019/06/24/i-retir ... KW,2BLZT,1

[winston]

5 Reasons to Retire as Early as You Can

by Chuck Saletta

No. 1: You only have so long to live well
No. 2: Someone is going to spend your money — it might as well be you
No. 3: That famous deathbed regret
No. 4: Even if you don’t quit, the fact that you can matters
No. 5: To make the memories that will last well beyond your lifetime

Source: The Motley Fool

https://dailytradealert.com/2019/12/05/ ... s-you-can/

[winston]

Here’s how much stock you should own when you retire

By Howard Gold

You need the right balance to offset the risks you’ll face

Retirees face four kinds of risk.
1. First is the risk that inflation will erode their nest eggs over time.
2. Second is that rising interest rates will cut into stock returns and reduce the value of their bondholdings.
3. The third risk is that not having enough growth in your portfolio will cause you to run out of money.
4. Fourth, “sequence of returns” risk — that you’ll retire just when a bear market hits, depleting the nest egg from which you calculate your withdrawals.

You counteract longevity risk by owning stock. You combat “sequence of returns” risk by owning the right amount of stock and holding plenty of cash.

Once you retire, consider keeping no more than 50% or 60% of your money invested in stocks.

Source: Market Watch

https://www.marketwatch.com/story/heres ... yptr=yahoo

[winston]

7 signs you're spending way too much money

Source: SCMP

https://www.scmp.com/better-life/money/ ... much-money

[winston]

The inventor of the ‘4% rule’ just changed it

By Brett Arends

Bill Bengen says the now-iconic rule was always treated too simplistically

Historically, he says, the average safe withdrawal rate has turned out to be about 7% and at points it has reached as high as 13%.

His calculations, incidentally, are all based on a conservative retirement portfolio where you keep 30% of your money in the S&P 500 SPX, 20% in U.S. small-caps and 50% in intermediate U.S. Treasury bonds.

Source: Market Watch

https://www.marketwatch.com/story/the-i ... eid=yhoof2