Category Archives: Retirement

Issues facing retirees and soon-to-be retirees

A Critical Difference: Investments in Middle versus Later Life

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Retirement is a watershed event in many ways, not least of which because investments take on a fundamentally different role in a person’s life. The role change is important, yet it often goes unnoticed as new retirees involve themselves in deciding where to live or what trips they might like.

Nothing signifies the change better than the activity with investment accounts: during middle life, workers regularly add to their investments, and during later life, they withdraw. A good way to illustrate the importance of the change is to compare the performance of investment portfolios during 11 years of work versus 11 years of retirement.

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How Far Can You Imagine?

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In the March 5, 2012 issue of The New Yorker, Nick Paumgarten reports on “Magic Mountain: What happens at Davos?” (I’m not sure if a paywall prevents public readership.) Davos refers to the five-day, invitation only, annual meeting of the World Economic Forum, (WEF) which its web site says includes, “a cast of the world’s intellectual, business, arts, cultural and social giants.”

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How to Discover Freedom

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The beginning of retirement, like the first day of kindergarten, is often abrupt.

Some years ago, my mother reminded me of waiting with her for the school bus on my first day. I clutched my lunchbox in a small fist as the huge yellow bus rolled to a stop at our driveway. The doors clattered open; I approached the steps, grabbed the handrail, turned and said, “Bye Mom,” then climbed aboard.

Retirement starts that way for many when they say goodbye on that last day and walk out the door. That is how I retired, and I now realize it helped me know a special kind of freedom.

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How to Make the 6-Step Investment Model Work Better

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Two weeks ago we wrote about a 6-step investment model for retirees, and two days ago we saw that the model worked. Now we can show how to make it work better. The key is to further diversify the stock investments. Originally we used a mutual fund that reflects returns to 500 leading U.S. companies, and today we use one that reflects returns to the entire U.S. stock market.

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How to Make Retirement Investments Last—and Find Peace

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Most people work 40 years or more to accumulate assets for retirement. Then, if they use the assets too fast, they may end in poverty. How fast is too fast? The answer must balance withdrawals and longevity against investment growth, yet it need not be overly complex. It is entirely possible for many retirees to self-manage their investments if they organize an initial approach into a few basic steps. Over time, retirees can learn to refine and augment the basic approach outlined here. Continue reading →

You Can’t Always Get What You Want

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The future looks a little less than bright for members of the younger generations. Research shows that the majority of Americans believe it is unlikely members of Generations X and Y will have a better life than their parents. At the same time, some members of these generations seem disillusioned with the current state of affairs and express pessimism that they will have a traditional retirement. Adding insult to injury are several popular myths that tend to blame these falling standard on the members of Generations X and Y.

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Retirement is for Old People: Why Generation X and Generation Y May Never Retire

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I was born on the cusp between Generation X and Generation Y (a.k.a. the Millenials).  As a member of the middle-child demographic recently dubbed Generation Catalano, I have some insight into how members of both of these generations view retirement. And I have to say, it isn’t pretty.

Pessimism and the American Dream

According to the results of a spring 2011 Gallup poll, confidence in the American dream is faltering. Defined by Gallup as the opportunity for each generation to earn a better life than previous generations, the data show that indeed, the American dream appears to be slipping away.

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A Secret to Living Longer and Happier—Friends

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Friends enlarge our lives, as we enlarge theirs. There is nothing like goodwill and affection, extended and received, to boost our spirits and encourage us forward.

Yet later life often seems marked with decreasing friendships even beyond those claimed by death or incapacity—why? Can the losses be prevented? A few practical observations about friendship may help.  Continue reading →

Coming Home: Multigenerational Households are Growing—Part 1

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Coming Home-- Photo by Jamie Harris

Multigenerational households are growing in the United States, according to a 2010 study by the Pew Foundation. Such households were common in the early twentieth century, then they declined, reaching a relative low point around 1980. They have been rising since then, showing a distinct uptick with the recent recession. In a culture that emphasizes independence, multigenerational households generally expand out of necessity, providing further evidence that times are tough. These trends will affect the retirements of millions of Americans.

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