9 Ways to Retire Rich


For real people, building a rich retirement requires creative solutions beyond “start saving early.”  In today’s post Dennis Miller looks at conventional wisdom and compares theory with practice. He shows that the average investor doesn’t even keep up with inflation (i.e. he actually loses purchasing power with every year that goes by.)  ~Tim McMahon, editor

Straight Talk from Yogi Berra: 9 Ways to Retire Rich

By Dennis Miller

“In theory there is no difference between theory and practice. In practice there is.”—Yogi Berra

It’s October, AKA the major league baseball postseason. As a lifelong baseball fan, I take the wisdom of Yogi Berra seriously. And when it comes to planning for the autumn of life, Yogi is spot on.

It seems as though every day an article titled “5 Tips for Retirement Saving” or something similar hits my inbox. I scan for the author’s name, and I’m amazed by how often it’s distinctly contemporary—Jennifer, Brandon, or another name of that vintage. Jennifer’s title is something like “staff writer,” and I immediately picture a fresh-faced young person with a newly minted journalism degree. After work, maybe she jumps in her starter BMW and heads to a local watering hole with her friends to gripe about student loan repayments.

“Jennifer” means well. After all, she’s just doing her job. She recommends setting financial goals, getting out of debt, living within your means, and saving from a young age. I won’t argue with those recommendations. Jennifer’s grandparents probably did just that. If you can pull off following that advice to a T, chances are you’ll accumulate a good deal of wealth.

However, once Jennifer has tried to put her advice to practice for a couple of decades, she might understand that it’s [Continue reading]

Retirement Planning for the Bommerang Generation- Infographic


Recently, our friends at Milliman Employee Benefits created an infographic on retirement planning for the millennial generation.

Millennial’s parents were from the “boomer” generation and because so many of the millennial generation  are returning to live with their parents they have gotten the nickname the “boomerang” generation. Of course, if you are living in your parent’s basement, retirement planning may be the last thing on your mind but as the economy improves and you get established you should certainly be planning to set some money aside for retirement. As we have said many times, the key elements to successful retirement planning are time, consistency and rate of return.

So the sooner you start the more time you will have for your money to grow. The next key of course is consistency which means that you need to have some money taken out of every paycheck. When you are first starting it is OK if the amount is small, the key is to get started and then increase your investment with every paycheck. After all, before the raise you were living on that amount so if you take half your raise and add it to your retirement fund you won’t  miss it!

The final factor in growing your retirement fund is the rate of return. Currently, with interest rates low it is difficult to get a high rate of return from fixed income investments like bank accounts, CD’s, and even bonds.

So you should have a significant portion of your retirement funds in a diversified portfolio of stocks. Over the long term stocks should do well even if they have a few set-backs along the way. ~ Tim McMahon, editor.

Milliman Infographic: The Boomerang Generation’s Retirement Planning -

The Millennial generation has gotten a bad rap concerning their retirement planning habits – or lack thereof. Fortunately, there are several steps Millennials can take to secure a better retirement. The infographic below features 12 tips Millennials should consider when developing their retirement strategy. The tips are taken from Jinnie Olson’s article “Retirement planning: 12 practical tips for Millennials.” The infographic also highlights some of the generation’s retirement planning behaviors. -

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Reducing Investment Stress

Stress

Planning your finances and choosing investments can be stressful especially when markets are volatile. But it can be downright scary when like in 2008 they enter free-fall.  Many people have decided that the stress (and chance of loss) just  isn't … [Continue reading]

Deciding Who to Trust With Your Money

Trusting Strangers- 3439333639_b1af54ea37_z

Almost everything we do in life requires that we exhibit some form of trust. When we go to the grocery store we are trusting that the food is wholesome and the package contains what is says it does. When we go to the gas station we are trusting that … [Continue reading]

The Real Toll Car Depreciation Takes On Your Net Worth.

Car Depreciation

Getting the Most Value from Your “Geriatric Cruiser” By Dennis Miller For many a car lover, retiring rich requires the end of a lifelong love affair. I empathize with them all; I’ve had my own romance over the last 50-plus years. Cars have a … [Continue reading]

Are Annuities for You? Plus 9 Buying Tips

Annuities

9 Need-to-Know Tips for Buying Annuities… And Knowing When They’re Not For You You're probably something of an expert in your own field—and that field probably isn't insurance or annuities. How, then, can you work through the minefield of clauses, … [Continue reading]

Give Your Kids or Grandkids a Financial Boost

Roth IRA for Child

Summer is  a great time to teach your children about saving money for retirement and an interesting way to do it is by setting up a Roth IRA for them. Remember a Roth IRA is slightly different than a standard IRA. In a standard IRA you contribute … [Continue reading]

Key Facts About Your Family Insurance Plan

Insurance

Every family needs several different types of insurance. Some offer protection for the near term, and some for the long term. Both types are important for protecting your family's financial future. Make sure your family insurance plans are up to date … [Continue reading]