It’s a money question that has no definitive answer: “How much should I save for retirement?” An exact figure is so elusive because everybody’s financial situation is different. In the past, most investors blindly considered 1 million dollars to be the number to target. Unfortunately, $1,000,000 could be considered a starting point for some. It’s not a universal number. But a basic target can be calculated based upon your individual needs. Put more simply…multiply your [...]

Should stock investors worry about changes in interest rates? Research shows that, like stock prices, changes in interest rates and bond prices are largely unpredictable. It follows that an investment strategy based upon attempting to exploit these sorts of changes isn’t likely to be a fruitful endeavor. Despite the unpredictable nature of interest rate changes, investors may still be curious about what might happen to stocks if interest rates go up. Unlike bond prices, which [...]

Part #1 of this series, The First Step is Signing Up, breaks down the various reasons why Americans aren’t participating, and the steps for signing up for your company sponsored plan. But what if your company doesn’t offer a 401(k)? Millions of Americans are facing a Retirement Crisis. As we learned from our first piece in this series, only 14% of all American employers offer a 401(k). Not being able to contribute to an employer-sponsored [...]

Financial science and experience show that our investment efforts are best directed toward areas where we can make a difference and away from things we can’t control. We can’t control movements in the market. We can’t control news or financial headlines. No one can reliably forecast the market’s direction or predict which stock or investment manager will outperform. But each of us can control how much risk we take. We can diversify those risks across [...]

DO YOU PARTICIPATE? Americans aren't saving enough for retirement. Recent studies show that Two-thirds of all Americans don't contribute anything to a 401(k) or other retirement account available through their employer. Millions of people aren't saving, because either they don't have access to a plan, or just can't spare the cash. It doesn’t help that the information on how to participate is stuck in the middle of a large stack of new employee paperwork that [...]

Daily market news and commentary can challenge your investment discipline. Some messages stir anxiety about the future while others tempt you to chase the latest investment fad. When tested, consider the source and maintain a long-term perspective. Why doesn't the media run more good news? Because bad news sells! It sells because fear is a more powerful emotion than greed. If people preferred good news, the media would supply it. Newspaper editors know it, which [...]