Should You Invest in a Target Retirement Date Fund?

Target Date Funds were intended to be a “one-size fits all” retirement investment vehicle. Investors were encouraged to put most if not all of their retirement portfolio into a retirement date fund after selecting a target retirement date. Then, the theory went, they could sit back, relax, and watch as the fund grew over time while automatically adjusting the fund’s asset allocations as their target date approached. Read more

What is Your Retirement Risk Index?

If you want to read some scary stuff this Halloween, check out the latest “retirement risk” data compiled by the Center for Retirement Research at Boston College.  The National Retirement Risk Index (NRRI) focuses on data indicating how well-prepared American adults are for retirement. Read more

A Failsafe Plan for Retirement Income

Regular readers know that Mr. ToughMoneyLove is a baby boomer and that I write a lot about retirement planning at my Go To Retirement blog. That blog has garnered some substantial publicity lately, having been mentioned in both the New York Times and the October issue of Money Magazine.

Readers may also recall that I have been studying the work of Zvi Bodie, a professor of finance at Boston University.   I first mentioned Prof. Bodie in my post on How Long Can this Bear Market Last and later read his book on Worry Free Investing.  I’ve used Prof. Bodie’s ideas in our retirement income plan and now I’ve developed a system to help others do the same. Read more

New Government Initiatives to Boost Retirement Saving

Sometimes – not often – our government’s attempts to get in the middle of our financial planning makes sense. This appears to be the case with several initiatives announced by the White House yesterday. These initiatives are intended to firmly move more Americans toward responsible levels of saving for retirement. Let’s review them briefly. Read more

Expanding Our Retirement Living Options

Mrs. ToughMoneyLove and I returned this evening from a weekend visit to a new community being developed on the Cumberland Plateau in Tennessee. Although not explicitly marketed as a retirement community, clearly the target buyers are retirees and retirement-hopeful baby boomers. We discovered while on a trail ride that some folks we know are building a house and plan on retiring there this winter.  Read more

Personal Finance Education at the Class Reunion

I’ve returned from my 40th high school reunion weekend. I had a fabulous experience, nostalgic and otherwise. Read more

Do You Have a Retirement Date Target?

Most people have figured out by now that many baby boomers are having to re-adjust their plans for retirement, mostly by delaying their target retirement dates. The reality of the market crash coupled with inadequate boomer retirement savings to begin with has forced those decisions. Read more

Seeking New Investment Options in a 401(k) Plan

Recently I wrote a piece on how a 401(k) plan can make lousy retirement plan. One of the reasons I cited is the lack of high quality investment options in the plan. The missing qualities can include low-cost, variety, and suitability to changing market conditions. Read more

The Declines of 401(k) Matching and Mr. Ponzi

I will be posting something tonight or tomorrow about yesterday’s volunteer tax preparer experiences.  One client visit was probably once-in-a-lifetime (for me) unique so I want to take a little more time to think and write about it. Read more

Why 401(k) Can Spell “Lousy Retirement Plan”

Mr. ToughMoneyLove doesn’t have have a pension plan or a golden parachute.  When I leave my job for good, my employer will say thanks (by then, probably more like “thanks for finally leaving”) and cut me a small check for the book value of my stock in the business.  

Our retirement income will depend on other assets plus Social Security.  A large (but shrinking) part of those assets is my 401(k) plan.  Discounting 2008 and 2009, I’ve been happy with it.  But for many people, 401(k) plans can make lousy retirement plans.  That’s why I will continue to do a lot of investing outside my 401(k) plan.  I actually have reasons, starting with…. Read more

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