The beauty of a well-diversified portfolio is that you can come out ahead by sticking to the middle.
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In prior months, this letter has provided guidance on how much and why you should be saving for retirement. As a refresher, previous letters are available here. This month, we’re talking about the different retirement saving options available to employees and the contribution limits for each option.
The Loomis Sayles Bond fund is a credit intensive fund that is invested in domestic and international high yielding corporate debt. What sets Loomis Sayles apart from the other high yield bond funds is their contrarian view towards the high-yield bond market. The manager of Loomis Sayles, Dan Fuss, has recently expressed his confidence in the high-yield debt market and his overall investment strategy, exclaiming that, “the focus is on security selection.” Loomis Sayles continues to be bullish on high-yield debt and remains focused on the long term cycle of the high-yield bond market....
Are you really worse off after the recent drop in stocks?
From the perspective of your overall financial health, a big jump in stock prices ain’t all it’s cracked up to be. Nor is a drop in stocks as damaging as you might fear. This is the “Even Steven” concept – you lose something in one part of your plan, but you gain it back in another.
Have you checked the Ascensus website for an estimate of your lifetime income? This is a great way to look at your retirement nest egg.
According to the Social Security Administration, nearly 90% of people 65 and older receive monthly Social Security benefits with the average monthly benefit equal to $1,335.
The vanguard REIT Index fund is one of the least expensive ways to gain exposure to the real estate equity market. Even though this fund has seen more volatility in the last twelve months when compared to the average REIT fund, the risk-adjusted return has also been higher. The index fund's performance has replicated this by being one of the leading performers in it's category for the 3, 5, and 10 year periods.
Since the Federal Reserve recently raised short term interest rates by .25%, there has been a lot of discussion on the impact that will have on the Domestic and International markets. Open this article and examine 7 charts that explains the decision making process of the Federal Reserve that brought the first rate hike since 2006.
Why is it so important to save for retirement (Part 1)? Life Expectancy is a big reason. In addition to Social Security benefits (more to come on this next month), your investment portfolio is likely to be your most significant source of financial support in retirement. Naturally, the longer you live, the more financial support you will need and people do continue to live longer. The following chart uses information from the Social Security Administration to compare the probability of living to a specific age for someone born in 1950 versus 1990.
PowerShares (QQQ) is one of the largest and most actively traded ETF’s in the United States. The main objective of the fund is to track the 100 largest, nonfinancial stocks in the cap-weighted Nasdaq-100 index. This being said, QQQ has a strong presence in the technology (55.02%) , consumer discretionary (19.5%) and biotech (15%) sectors, offering a level of diversification that is desired and essential in many portfolios. Take a look in closer detail to the fundamentals of the ETF by clicking here!
Beginning with the first paycheck you received, you’ve likely been hearing a consistent message from family, friends and employers encouraging you to save for retirement. While this is certainly invaluable guidance, it’s not clear to most how much should be saved to reach a goal of financial independence. Are you on track for a successful retirement?