Most of us in our 50's are racing towards retirement--we aren't there yet but what used to be a far off goal or dream is now within view. This article tells us how much we should be saving. Once we've saved it, we need to invest it, and Vanguard is a favorite fund family for many. The author recommends three Vanguard funds for retirees. This author tells us the best way to invest for retirement. Before we retire, here are some things to consider.
Once upon a time, retirement meant a pension--income that your former employer guaranteed would be there until you died. Today's 401(k)s don't make any guarantee but there are ways to make those funds a guaranteed source of income. Everyone likes to think the rules don't apply to them. This article is about rules the author doesn't think apply to anyone anymore.
One investment style that is in vogue now is looking for dividend-paying stocks. With interest rates at the low levels we now see, stock dividends can be a reliable source of income, without losing the possiblility of price appreciation. Here are some suggestions for finding the best dividend paying stocks.
Did you read anything about investing or preparing for retirement that caught your eye this week? Share it with us in a comment? Any comments on these articles?
I wonder about the needing 100% of your current income to retire (rules). I would say we (when we are in one household) spend much less then we ever did when we both worked. We do not go out to meals as often. Not only is homecooking good- it is good for you. We are noticing our "palate" is much more discriminating. We no longer contribute to retirement accounts. We no longer purchase professional clothing. When we are in one house we spend right about 50% of what we did the last five working years (not including the saving my full salary at that point). It is an interesting road. Lots to think about.
ReplyDeleteWe are trying to figure out what is realistic. Our house is paid for so our housing expenses aren't going down. I suppose we could spend less on clothes, but I don't think we spend that much now, and while no fashion maven, I do like new clothes. I suppose we'll lose the commuting costs, but we each go about six miles each way daily, and I have a hard time believing we are going to stay home all day every day, especially at the beginning of retirement. Of course we won't contribute to retirement accounts but we don't want to spend them down too fast either. We really want there to be something left to take care of my son. Also, we are going to be paying tuition until we retire, which means we won't have those last few years of being dinks before we retire.
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