Year after year, getting healthy is a top New Year’s resolution for Americans, while saving more and spending less typically ranks lower on the list of priorities. While many people may have purchased gym memberships at the start of the year (and are hopefully continuing to use it a month and a half in), we believe strongly that taking steps to improve financial wellness is a goal worth pursuing, and sticking to....
The Sequence of Things
To give you a taste of how future returns can really play with an assumed safe withdrawal rate, here’s a simple graphic to illustrate. In each scenario you have the same time horizon, same average return over that time horizon (10%), and an equal number of years of 10% losses and 30% gains over the time period. The only difference between each scenario is the sequence over which you experience those losses....
A Decade of Low Returns Looms
According to a new report from advisory firm Research Affiliates, the next 10 years will bring low single-digits when it comes to expected real returns (defined as gross return less inflation) in a "typical balanced portfolio." In fact, their analysis projects that the odds of making even 5 percent on traditional investments over that time frame are slim....
Moving in the Right Direction
A little good news on the retirement savings front – a recent report from Fidelity Investments shows that people are saving more money for retirement and setting up more retirement accounts, with fewer savers borrowing from their funds. It’s an encouraging sign in the constant challenge for retirement security....