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Thinking about rolling over your 401(k)? Make sure you do your homework first.

Getting advice is easy. Just look on the internet and you’ll see opinions everywhere. But before you make any moves, you should ask yourself: “Does this advice benefit me or someone else?” This is important because your 401(k)’s performance will impact your quality of life during retirement. So it’s crucial…

Shuffling the cards makes winners and losers

Much in the press has highlighted the "victory" of keeping the interest rates on Stafford student loans from doubling to 6.8%. The 3.4% interest rates seems like a victory to the millions paying back their student debt. But is it really? Here is the full picture:

Background

Part of the deal Congress struck to expand the National…

Inconsistent fixed-income performance is common: It is extremely difficult to predict which category of bonds will be the best or worst performer in any given year. The performance of any fixed-income investment can have drastic periodic changes. Investors could potentially diminish their returns by attempting to follow last year’s winner. Furthermore, investors who have an asset allocation…

Approaching retirement with too little money is unfortunate. Furthermore, getting drawn into the daily hype that has people jumping in and out of the stock market can be disastrous. The market will inevitably go down once in a while, but history proves that despite this, the long-term trend for the market is up. Taking that into account, the earlier an individual begins to invest, the better…

1. Much Longer Retirement: Many people in previous generations worked as long as they could and very few were fortunate enough to have a retirement that would be considered “golden” by today’s standards. How many spent the last third (or more) of their lives pursuing hobbies and leisure instead of working? Boomers retiring in their 60s can expect to live about 30 years in retirement, which is…

As an investor, you may ask if an allocation to dividend stocks in your retirement portfolio will help keep up with inflation. Examining stock returns during periods of high inflation may answer this question. Dividend-paying stocks may offer benefits such as stability through income return and inflation protection. While stock prices tend to be volatile, dividends may serve as a stable…

Volatile markets pose several challenges for retirees who rely on receiving a livable income stream from their investments. Interest rates are low and likely to stay low for the foreseeable future, making cash and high-quality bonds a safe parking place for now. Amid such a challenging environment, it's hard to blame retired investors for looking beyond traditional investments like stocks,…

Concerns about shortfalls in traditional retirement income sources like Social Security and pension plans have caused people to expect to rely more heavily on personal savings to fund their retirement. The graph illustrates that while only 50% of current retirees utilize their personal savings for retirement income, 65% of current workers anticipate personal savings to play a role during…

saving and spending (Photo credit: 401K 2012)

Deciding what to do with your 401(k) balance when you leave a job does not have to be difficult. It is something that almost everyone will have to do at some point. The best approach is to look at the various options, understand the differences, and figure out how your decision will impact your ability to save for retirement. In general, here…

 

The recent low interest rate environment has resulted in lower income from short-term fixed income investments. Relying on yields alone may not generate the cash flow needed to meet your income requirements in retirement. If you are looking to generate more income, consider adding dividend-paying stocks to your retirement portfolio.

Dividend stocks may provide income through…