NEWS WRAP - Study Suggests 401(k) System Woefully Inadequate for Most
All being well, when an individual reaches retirement they will have enough cashflow to continue their pre-retirement lifestyle; however, a new study indicates that many in the US will be unable to meet even their basic spending needs once they stop working.
The new report, from the Economic Policy Institute (EPI), finds that despite accruing around three decades worth of savings into their 401(k) accounts, most retirement savers between the ages of 56 and 61 have a median account balance of $21,000.*
It would be tempting to think that younger people were better prepared, yet the same study reveals that the first generation of millennials are just as poorly, if not more poorly, prepared for retirement, with a median 401(k) saving of approximately $1,000.*
TOP TIPS - Considering Women-led Companies for Investment Diversity
It is a curious thing that for an industry in which success largely lives or dies on the strength of diversity, it has taken a long time for the finance sector to cotton on to the value inherent in investing in female-founded and female-run companies.
TOP TIPS - Crunch the Social Security Numbers and Play the Long Game
There is a lot of debate, and conflicting advice, regarding the age at which it is best to take Social Security benefits.
Of course, if you are 62 and have no other source of income, the answer is taken out of your hands: you will probably need to claim.
However, for those people approaching retirement age who have made financial plans for the future, there is the liberty of choice. So, what are your options, and what should you do? Here are our Top Tips:
News Wrap - Is Now the Time to Invest in Commodities?
A recent article in the Wall Street Journal* suggested that now might be the time for investors to invest in commodities, particularly as part of a longer-term strategy such as a retirement plan, perhaps. The article stated that the best time to invest in an asset class is typically when its performance is at its worst. Given the recent and extended travails of commodities, it contended, they currently make for a potentially attractive prospect.
Commodities are raw materials that are either consumed without processing or are used as the foundations for other products. Examples of commodities range from timber, oil, nickel, gas or gold, to oranges, corn, coffee wheat, cattle and sheep.