Whether your financial goals are five or 50 years down the road, saving alone probably isn’t enough to achieve them. That’s why growth is such a critical component of most portfolios.
Not that long ago, U.S. stocks were the go-to investments for investors seeking aggressive growth. While U.S. stocks are still the bedrock of many portfolios, investors are now looking outside our borders for additional growth opportunities.
You’ve heard the expression, “When the going gets tough, the tough get going.” When it comes to investing for retirement, however, going when the going gets tough isn’t always the right thing to do.
On the same note, going when the going gets easy isn’t always the right thing to do, either.
True or false? It doesn’t matter how much an investment goes up or down in value, as long as the average return over time is good.
If you chose “true,” you’re wrong. But you’re not alone. Many investors don’t realize the impact volatility can have on returns over time.
Forget the Joneses. When it comes to saving for retirement, what investors really need is to keep up with inflation. Because bit by bit, year by year, inflation steals away our purchasing power.
Among the many perils facing today’s workers and retirees, four in particular stand out: longevity risk, inflation, market volatility, and abandonment risk. I wrote a post on this topic in June.
In this post, I’ll take a closer look at longevity risk — one of the most common retirement concerns. In fact, the risk of outliving their savings is a worry that keeps about one-third of workers and retirees awake at night, according to the Principal Financial Well-Being IndexSM (third quarter 2011).