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Retirement

Your Money

Retirement Planning: How to Cope With "Boomerang Kids"

It's bad enough that freshly minted college graduates can't find jobs, but when that forces them back home to Mom and Dad, it can also have an impact on retirement planning.

What this means, Keith said, is that parents need to figure out a way to help out struggling offspring without completely derailing their retirement savings.

In this video, Keith explains why this is happening and how parents should handle it…

Read More…

Your Money

Time to Act: Pension Funds are Drying Up

On numerous occasions, I've told you to remain on lookout for threats to your savings, including the proposed new MyRA account.

If you've been counting on your pension, whether from work or even Social Security, you may want to revise those plans, as most are way underfunded.

Research by Bridgewater Associates, the world's largest hedge fund, estimates that 85% of public pensions could go bust within 30 years.

Public pension funds currently have about $3 trillion in assets, but will need to pay out nearly $10 trillion over the next several decades.

That would require average annual returns around 9%, but Bridgewater estimates they'll only earn about 4%, leaving pensions severely underfunded as paid benefits exceed contributions and returns.

Here and elsewhere, governments have bought votes by overpromising benefits that will never be honored...

Your Money

Prepare Now for When the New MyRA Becomes "TheirRA"

In his recent State of the Union Address, President Obama unveiled something new: a retirement savings account to "help" Americans build a nest egg, coining it the "MyRA."

Something immediately felt wrong about the proposal… but I couldn't put my finger on it.

So I researched the new MyRA and found details to help you understand just how it works.

But I also saw some potential dangers there that you need to prepare for now...

Your Money

America's Bestselling Retirement "Plan" Is Jeopardizing – of All Things – Your Retirement

I recently received a call from "Russ," a client of mine. He was wondering why the investments he holds at my money management firm have gone up so much more than the money he's entrusted to a major fund broker.

I'd be wondering, too.

That's because, in a year filled with hundreds of 52-week highs and a broad market that climbed roughly 25%, they've managed to "grow" Russ' money all of… 2%?

It didn't take long to find out why.

It's estimated that by 2020, nearly $3.85 trillion will be invested in the same "one-click" mutual fund industry's bestsellers that Russ did: "Target Retirement Funds."

In fact, these "solutions" are more dangerous than they've ever been...

Investing Tips

The (Simple) Secret to an Early Retirement

In my early career, I was fortunate to do well financially while working at Goldman Sachs. I also made the decision to live below my means, and to invest intelligently. By my late twenties, I had amassed a seven-figure nest egg, and in my early thirties, I actually took an extended vacation for about five years.

What I came to learn, however, is that you don't have to work for Goldman Sachs – or be a multi-millionaire – to be able to retire comfortably or early.

You don't even have to figure out your "number"...

Income Plays

WARNING: These Stocks Will Crush You (Strong Sell)

Log in to your brokerage account… Call your broker… Request a plan prospectus from your pension administrator… Jump online and review the holdings in your "target retirement" funds, ETFs, variable annuities…

Do whatever it takes to find out – today – how much exposure you have to real estate investment trusts (REITs), and mortgage REITs in particular.

Income Plays

The Most Dangerous Myth About Retirement Investing

The most dangerous myth out there right now is that Treasuries are the key to safe wealth building.

Forget about Fed Chairman Ben Benanke's latest palliative.

This misconception will turn your nest egg into a pile of sticks faster than you can say quantitative easing.

And this is a huge problem because the baby boomers are starting to retire in droves.

I call this the Great Retirement Funding Crisis. And I am determined not to be a part of it. And I have a plan.

Retirement

How Congress and Obama Robbed U.S. Pension Plans with Map-21

We found yet another reason why the U.S. retirement crisis will be uglier than many retirees are prepared for…

You see, while retirees were napping last year, Congress and President Barack Obama were quietly stealing from their pension plans by enacting a little-known law called MAP-21.

Hidden in the wording of a new transportation bill, the act allows big companies to slash their contributions to pension funds.

The upshot?

The number of companies defaulting on their pension plans could balloon and bankrupt the Pension Benefit Guarantee Corp. (PBGC) insurance program – leaving retirees out in the cold.

"That smell of sulfur is what MAP-21 gives off," Jeremy Gold, a pension consultant, told The Fiscal Times. "It's got a smell about it of a deal made with devils."

That's bad news for retirees — or those about to retire – who are counting on a lifetime of payments from a pension plan.

Here's why…

MAP-21: A Wolf in Sheep's Clothing

In 2012, the government faced a shortfall between current gas taxes and projected highway spending.

So how to raise the money?

To continue reading…

Investing Tips

This Single Statistic Scares Me to Death

A year ago at this time, a U.S. Federal Reserve study found that the median net worth of the American family fell by almost 40% between 2007 and 2010, wiping out 18 years of economic progress and cutting middle-class wealth back to levels not seen since the early 1990s.

A year later, a new study has found that – despite the continuation of the strongest-bull-market rebound in history – America's finances haven't improved.

The Retirement DerailersSM survey found that a staggering 90% of American investors (aged 50 to 70, and with $100,000 or more in investment assets) have been blitzed by at least one "derailer" – an unexpected event that has put a hefty dent in their retirement savings goals.

And when you drill down into the numbers, the story gets a lot worse.

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