It's never too late, or for that matter, too early, to begin planning for retirement. There's a misconception that in order to save for tomorrow you can't enjoy today. That the sacrifices necessary to live a long and healthy retirement require forgoing enjoyment today. Fortunately, with careful planning and sound management, an investor can have both.
To hedge, sell or stay the course ... If there was a gauge or some way to measure investor anxiety it would currently give off a high reading. A sustained run has equities sitting near all-time highs. Valuations by most measures are stretched. The political climate seems poisoned undermining confidence. It doesn't matter what your affiliation.
Retirement is the number one topic for investors. In days past, retirees could rely upon a three-legged stool for retirement: a defined benefit pension plan (DB) that guaranteed income for life, their own savings, and Social Security. Defined benefit plans have been replaced by employer defined contribution plans (DC) such as a 401(k) plan.
Why investors should fight the urge to market time:
It has been an eventful November not withstanding a Cubs victory and a controversial election!
This post election analysis highlights and focuses on several important factors:
1. Markets (stocks and bonds) have strong election move
2. Rotation from deflationary to inflationary sectors underway
(Why investment plans matter)
In fact, that's exactly what most investors do by not having an investment plan. Surprisingly, even among the affluent, most investors don't have one.
Caught in an extraordinary convergence of unhinged stock market volatility and historically low interest rates on savings, many people are rethinking their plans and their vision for the future, especially as they consider the prospect of having to stretch their retirement income over 25 or 30 years. A study conducted in 2015 by the Employee Benefit Research Institute found workers of all