Perhaps you are familiar with an annuity. The basic premise is that you convert a lump sum of money into a stream of income. Unlike an investment, once you commit a fixed amount of money to the insurance company, that company is contractually obligated to provide you a minimum level of income with the option to continue receiving it as long as you live. All guarantees are backed by the financial strength of the issuing insurance company.
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There are different formulas for launching highly successful companies. First, create a product that solves a problem that no one knew they had — for instance, how online search engines replaced encyclopedias. Then, there are ideas that help solve problems that plague millions of people.
Back pain, for example. Not only do approximately eight in 10 adults experience low-back pain at some point in their lifetime, but it’s also the most common cause of job-related disability.
One individual who suffered severe back pain while sitting at work all day decided to invent a new kind of desk. This desk would allow him to stand while he worked, alleviating his back pain. This man was a co-founder of VARIDESK, a new type of office furniture manufacturer. But this new company didn’t just enter the office supply industry; it introduced a new sales model that was key to its rampant success: Selling online direct to consumers.
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In 1985, only 10 percent of people aged 65 and older were either in the workforce or job hunting. Today, that share has doubled, for a couple of reasons. First, fewer 65-year-olds have enough money to retire. Second, the number of people in this demographic with a college degree has more than doubled (53 percent today vs. 25 percent in 1985).
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Financial literacy has always been a challenge. However, now that much of the burden of retirement income has shifted to employees instead of employers, it is all the more important that we begin teaching the principles of saving and investing to people as early as possible.
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When the 2017 Tax Cuts and Jobs Act reduced the corporate tax rate from 35 percent to 21 percent, the hope was companies would spend their influx of money on expansion and increased jobs and wages. Instead, public companies’ most popular way to spend the excess capital has been to buy back their own stock.
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March 9, 2019, marked the 10th anniversary of the current bull market, the longest-running in U.S. history. In that decade, the market more than quadrupled, and when you factor in dividends, it’s up fivefold.
The short-term spikes over the past few years coupled with corporate share buybacks have served to keep performance humming. As we move forward, a few points of note:
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When Lessie Brown, a 114-year-old woman from Ohio, passed away in January, her family attributed her longevity to the fact that she ate a sweet potato nearly every day until she was well past 100.
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According to new research from Genworth, one of the nation’s leading long-term care insurance companies, Americans are both entering caregiver roles and requiring care at younger ages.
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U.S. stock markets were enjoying an eighth consecutive year of a bull market until volatility toward the end of 2018 erased all of the past year’s gains.1 In times like this, as share prices continue to bounce back and forth on a day-to-day basis, investors close to or in retirement often transition to more conservative investments. One option is the municipal bond market.
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Thirty years ago, developed markets were seen as much more stable than smaller, emerging countries. But as political division and uncertainty permeates the West, the differences have faded, and emerging markets (EM) have shed the high-risk perception that accompanied foreign investment.
Sound government situations, conservative monetary policy and lower levels of debt were once staples of developed markets, while EMs posed higher risks with regard to politics and central bank policies. EM countries have evolved, along with their institutions and policies, while populist politicians have gained prominence in the West by touting the benefits of isolationism and protectionism.1
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Assuming Responsibility | 8 Financial Assumptions for Building a Stronger Retirement
People need to make certain assumptions about their money to build a solid retirement foundation. This often includes investments, expenses, income needs and more. Today Jon and Karyn discuss what all of these are, why they are important and how to address each area to be sure you have what you need – when you need it.
Six Steps to a Smooth Financial Transition from Work to Retirement
Are you really prepared to make the transition from work to retirement? Today Jon and Karyn talk about the preparation needed to make sure it works – especially involving retirement income, protection from high costs of health care, asset allocation and more.
Key Steps to Maintaining a Strong Marriage in Retirement
You have lived a lifetime together. You have raised children, watched them grow, experienced life’s greatest moments and, undoubtedly, some of life’s hardest moments too. This bond has made your marriage strong but despite all of this, retirement may bring a new set of challenges that you and your spouse did not anticipate. If you’re feeling frustration or isolation as you adapt to life in this new chapter you are certainly not alone. According to a recent study by the Pew Research Center, the rate of divorce among American adults over 50 has doubled since the 1990s.[i] This dramatic rise is likely due to a broad spectrum of contributing factors, but one of those may be lack of planning in advance for a shared life in retirement.
In this article, we share some key elements to success for a happy marriage in retirement.
Fixing Eight Common Money Mistakes
These include not having a budget, not planning on when to take Social Security, and not knowing how much you can take out on a regular basis. Jon and Karyn discuss these areas and others to be sure you have all the bases covered and that one mistake doesn’t lead to others.
Overcome Your Fear of Outliving Your Retirement Assets
If you are among the millions of people worried about running out of money during retirement, there are steps you can take now to improve your financial picture for an extended retirement and a long and healthy life.
According to the TransAmerica Center for Retirement Studies, longevity risk is the top retirement fear of working Americans. As life expectancy has increased while retirement savings has decreased overall, people are relying on less money for a longer period of time in retirement.[i]
Fortunately, there are many strategies, investment vehicles and practical steps that can be implemented to avoid outliving your money.