Challenging markets are the time when you need a plan and you need to stick with it.
Even when facing challenging markets, plans need not be overly complicated. Here is an interesting analysis of a very simple plan, invest $100 a week into the S&P Index. Just look how it works. Zero Effort Retirement: 20 Years Dollar Cost Averaging Into the S&P 500
I would argue that annuities are a good component of a retirement plan – you can forget about challenging markets entirely! Just which kind is right for you, that’s a specific question for you and your advisor. What we do know is that the vast majority of Americans have a pretty decent chance of running out of savings in retirement. That is why I am a big fan of Deferred Income Annuities, or QLACs inside of qualified plans, because they give you a safety net beyond your comfort zone. Deferred income annuities can double payouts later in life
Now, if you are very conservative, or simply do not trust your instincts, willpower, or what have you, there is always the option to go with an Immediate Annuity. Here your income stream starts right away, and it is, in fact, comparable to an old school pension, i.e. you know what you will get for as long as you live. Interestingly enough, if you did a good job saving for retirement, you could patch together a term certain immediate annuity (that is a set payment for a set period, say 20 years) and a deferred income annuity (set to start in 20 years). You might still have some mad money left to enjoy right away. 3 Things to Know About Immediate Annuities
Just so you do not come away with the belief that dividend stocks, even dividend stars, are a panacea, this article does some back testing of that argument. The Fate of These 49 ‘Dividend Aristocrats’ of the Early 1990’s May Give You Nightmares
No matter your approach, this article is a good read because times like these present tempting ‘opportunities’ to make a quick buck. The Difference Between Investing and Speculating
I hope that provided a lot of good food for thought on your retirement. Now, let’s turn our attention to other, interesting things floating out there in the worldwide web.
Climate change, is this our fault, or does it just happen every so often? That’s the kind of conversation I avoid. I have never professed to be a climatologist, and question anyone I know who does. Still, certain datapoints make you think hard about just what is happening and what we stand to lose. If You’re Not Terrified by Climate Change, Just Consider the Great Barrier Reef
Similarly, I try not to get involved in the DOD/VA issues, but this article really got me steamed. Thousands of US veterans are sick and dying because of burning garbage
I simply cannot leave on a sour note like that, so let’s get some positive news, too.
I made the tactical error of mentioning this article when I found it on Valentine’s Day. A mining company found a 400-carat diamond and now its shares are going wild
These geniuses didn’t know when to stop. 16 Inventors who were killed by their own inventions
Everyone can use some help with their iPhone (especially the FBI, it seems). 25 Things You Didn’t Know Your iPhone Could Do