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fallond : pension   32

Simply Safe Dividends — Safe, growing income for retirement
Founded by a former analyst at an investment fund, Simply Safe Dividends is the trusted source of online tools and research for over 2,000 retirees managing their own dividend portfolios.
dividend  investing  retirement  pension 
10 days ago by fallond
I'm here, to remind you - The Reformed Broker
6. Never pull the goalie. The risk-off portion of your strategic asset allocation – most likely comprising some combination of long-term government bonds, short-term government bonds (or cash), TIPS, gold and municipal bonds, has done it’s job since the stock market’s peak. Long-term Treasurys in particular have gone literally vertical as yields have plunged. As improbable as bonds had looked for forward returns at the end of 2019, they have worked spectacularly well during the recent panic. These segments of your asset allocation are there to play defense for you. They come to represent the dry powder – so that when you rebalance into stocks that have gotten killed, you have somewhere to take the capital from that has performed well. Do this systematically over time and volatility’s effects have been negated. Our goalie, in addition to strategic holdings in these risk off assets, is literally called Goaltender. It’s a rules-based, tactical portfolio strategy that we use in differing amounts to help our clients reduce risk, lower exposure to volatility and remain calm in times like these. While we never publicly discuss how it works or its current positioning, you can read a little bit more about it here or talk to us about it here.
investing  pension  retirement 
20 days ago by fallond
The Stunning Problem With The 4% Retirement Income Rule In One Chart
What do you notice in this third scenario? A lot more red. Again, the average annual return is the same across all three scenarios (5.50%), but look at what happens. You run out of money in year 15. How is that possible?

The reason is that when your portfolio experienced negative returns early on, it was never able to recover even with the high returns later on. Basically, your portfolio got stuck in a hole, and with the $40,000 withdrawals each year, it was too little and too late. This is obviously not the outcome you want in retirement.

Are there strategies to help mitigate this risk? Yes, but the lesson here is to recognize that the order of investment returns matters a great deal in retirement. Creating a safe retirement income distribution plan is not as simple as following the 4% rule. This is why Nobel Prize winner, William Sharpe, said retirement income planning is “The hardest and nastiest problem in finance.” While it may not be simple or easy, it is imperative if you want a lifetime stream of income.

In upcoming Forbes articles, I will discuss several strategies to reduce the sequence of returns risk.
retirement  pension  returns  drawdown 
9 weeks ago by fallond
Option Premium Calculator: Streamlined and Easy-to-Use
OptionWeaver is a digital download that helps investors get started with selling options, including covered calls and cash-secured puts.
stocks  investing  valuation  income  options  retirement  pension 
10 weeks ago by fallond
Technical Strategy Archives - FS Insight
Good site for education trading, market cycles and commentary. Recommended by Josh Brown
investing  trading  education  pension  retirement 
december 2019 by fallond
(257) The Four Most Important Market Indicators - YouTube
Market Peaks coincide with generational peak. Gen X peak = Market Peak in 2018. Boomer in 1999 etc. Population peak determines market peak. Early 70's; Millenial + Gen X launch new rally 2016. Great time for markets. High Yield leads equities; junk bonds.

AAII survey, when extreme bearish (-20) -> 6 month out from signal - buy; 1 signal a year on average.

VIX 1-month contract more expensive than VIX 4-month contract -> buy
retirement  investment  pension 
december 2019 by fallond
Social Security's looming crisis is political, not economic
The actual function of the payroll taxes is to remove demand from the economy, thus making room for the demand that Social Security's spending injects into the economy. Which is what keeps inflation on an even keel. Meanwhile, those long-term CBO projections anticipate inflation will remain at a very modest and manageable 2.4 percent through 2050. In short: the system is fine.

Of course, Congress still faces the fact that it made a rule for itself that benefits must be cut when the trust funds run dry. If it wants to maintain the fiction, Congress could do what previous reforms have done, and bring spending and revenue back into line through some combination of benefit cuts and payroll tax hikes. At some point, however, you'd think the better move would be to acknowledge the trust funds are a political gimmick, and just spend whatever benefits our elected representatives deem appropriate.

Social Security may face a very interesting political crisis in the coming decade or two. But in hard economic terms, there is no crisis at all.
pension  retirement 
june 2019 by fallond
Dividend Investing Resources I Use - Dividend Growth Investor
The first resource that I have been using for several years is the list of Dividend Champions, Contenders and Challengers, that used to be maintained by Dave Fish. Unfortunately, Dave passed away last month. While a June list was published by someone else, I am afraid that noone will take the leadership role that Dave had in painstakingly updating that monster spreadsheet every month for a decade!
dividend  investing  retirement  pension 
april 2019 by fallond
The DRiP Investing Resource Center - DRiP Information, Tools, And Forms
The DRiP Investing Resource Center
Your Location For Dividend Reinvesting Information
Investing  dividend  income  retirement  pension 
april 2019 by fallond
Even God Couldn't Beat Dollar-Cost Averaging – Of Dollars And Data
Logically, it seems like Buy the Dip can’t lose.  If you know when you are at a bottom, you can always buy at the cheapest price relative to the all-time highs in that period.  However, if you actually run this strategy you will see that Buy the Dip underperforms DCA over 70% of the time.  This is true despite the fact that you know exactly when the market will hit a bottom.  Even God couldn’t beat dollar-cost averaging. 
finance  investing  education  pension 
february 2019 by fallond
How to Wreck a Pension Plan in 3 Easy Steps
The study was meant to decipher whether it was asset allocation or market timing and security selection that drove portfolio performance. The conclusion showed that more than 90%of a portfolio’s long-term variation in return was explained by its asset allocation, leaving only a small amount that can be explained by an investor’s ability to time the market or successfully choose individual securities.
investing  pension  education 
february 2019 by fallond
When I’m 65: five ways you’ll benefit
Once you hit 65, you might find that you will be exempt from income tax altogether. According to Keith Connaughton, a tax partner with PwC, while the same tax rates are applicable once someone hits 65 in principle, the main difference is the introduction of an exemption limit. If you’re below it, you are entirely exempt from income tax.

You can earn up to €18,000 as a single person, or €36,000 as a married/civil partner couple without being subject to any income tax once you hit 65. If you still have dependant children (including those in university) when you turn 65 – something which may become more likely as people have children at a later age – you will be entitled to increase these tax-free limits by €575 a year for the first two children and by €830 for any subsequent children.

And once you turn 66, you’ll also stop paying PRSI, which is levied at a rate of 4 per cent. According to Connaughton, the PRSI exemption applies to all earnings, including rental income, etc. You may be able to access the PRSI savings earlier if you draw down a private occupational pension. Private pensions such as these are not subject to PRSI, whatever age you might be, notes Kenny
tax  retirement  pension 
january 2019 by fallond
Helping People Make Wise Decisions for Retirement Income | UCLA Anderson School of Management
Self-Control: While Walter Mischel’s famed “marshmallow test” established the upside of being able to practice delayed gratification, not all the 5-year-olds could wait 15 minutes to earn a reward of an extra marshmallow. And self-control issues affect many people throughout life. For those who can afford to delay claiming Social Security, each year of delay after so-called full retirement age (between 66 and 67), until age 70, equates to approximately 8 percent more in income from Social Security.

Precommitment: One way to potentially coax more people to accept delayed gratification (waiting to claim Social Security) would be to dole out some small earlier gratification. Shu and Shu suggest that if the Social Security Administration wanted to encourage more people to delay, they might offer a small lump-sum payout at age 62 for people who have committed to waiting until they begin their regular payout at a later age.

Research also suggests that precommitment might work with annuities. Younger workers are more open to the concept of annuities than older workers. Yet annuities are typically only marketed to pre-retirees, whose bigger account values make loss aversion and psychological ownership big hurdles to overcome, and who are at an age where they would likely need to make a large lump-sum investment if they wanted an annuity.

Nudging younger workers to purchase annuities in smaller chunks could help them create guaranteed income for a retirement that is decades off, similar to a “personal pension” created for a single individual.
retirement  pension  education 
january 2019 by fallond
One Third of Americans Have $0 Saved for Retirement - The Big Picture
A third of Americans have no money put aside at all. That is driven by serious problems of social inequality and slow growth in the economy. But even among those who are saving, the amounts they have tend to be far short of what they will need. If you want a decent chance of an income of two-thirds of your final salary for the rest of your life, you will need a retirement fund worth more than 10 times that final salary. Only a tiny proportion of Americans are on course for achieving this.” (emphasis mine)
retirement  pension  investment 
september 2018 by fallond
Fidelity one-ups Vanguard: First company to offer no-fee index fund
No fee / low fee ETFs and funds

Schwab Total Stock Market Index 0.03 percent
Schwab Multi Cap Core ETF 0.03 percent
Vanguard Total Stock Market 0.14 percent
Vanguard Total Stock Market ETF 0.04 percent
iShares Core S&P 500 Equity ETF 0.04 percent
Schwab International Index Fund 0.06 percent
Vanguard Total International Stock Market Fund 0.17 percent
Vanguard Total International Stock ETF 0.11 percent
iShares Core MSCI International ETF 0.10 percent
Fidelity Total Market Index Fund 0.015 percent
Fidelity Total International Index Fund 0.06 percent
retirement  pension  funds  investing 
august 2018 by fallond
Not So Predictable - HumbleDollar
While I think the concern is justified, I also think we recall a golden era that never existed. For instance, a Social Security Administration study found that among the oldest baby boomers, those born between 1946 and 1950, just 50% of households have traditional pensions—which means 50% don’t. The reality: There was no glorious past when all Americans happily retired with generous monthly checks from their former employers.
pension  boomer  retirement 
july 2018 by fallond
15 Smart Ways to Invest $10,000 (in 2018)
1. Peer to Peer Lending 2. Auto-Pilot Investing 3. Invest in a High Yielding Savings Account or CDs 4. Build Your Own Motif 5. DIY Stock Market 6. Real Estate 7. Coaching Programs 8. Getting a Designation 9. Going Back to School 10. Online Courses 11. Starting Your Own Business 12. Starting a Blog 13. Launching a Podcast 14. Resell Products on Amazon FBA 15. Pay Off Debt
monetization  small  business  startup  investing  pension  retirement 
march 2018 by fallond
What_are_my_pension_options_.11350.shortcut.pdf
What tax is payable on lump sums?
The first €200,000 of any lump sum payable is currently (2012) taxfree.

Lump sums between €200,001 and €575,000 are taxed at 20%,
with any balance over this amount taxed at marginal rate and subject to the Universal Social Charge.
investing  pension  retirement 
july 2017 by fallond
Property or a pension: where can you get a better return?
The cost of servicing his mortgage in year one comes to €11,295, made up of principal (€3,505) and interest (€8,420). Initially our investor is happy, because he knows, given the location of the property, he should get rent of at least €1,400 a month in the current market, or €16,800 a year, which should leave a healthy excess to plug the gap.
But then he remembers the expenses he’ll also incur: repairs/maintenance of property at a standard industry cost of €1,000 per year; management costs of €1,500; home insurance €130; PRTB registration €90; plus accountants fees of €700 to help him file his tax returns each year, not to mention property tax of €300 a year.
He also remembers his tax bill, but is unsure how to calculate it. Based on the above, the difference between his rent (€16,800) and his total expenses (€15,015) is just €1,785, which, he thinks, means he will just have to pay income tax of about €900 or so for the year. However, his tax adviser has some rather different advice: tax is due on his “rental profits” – which means income less eligible expenses
investing  retirement  pension 
january 2017 by fallond
fundcentre.newireland.ie
First Derivatives Pension Fund Selection
pension  ireland  kx  employment  retirment 
december 2016 by fallond
Five market scenarios - Fidelity
This has created a dynamic in which Treasury yields are falling and credit spreads are narrowing, which is creating a further reach for yield—but this time outside the bond market. This phenomenon has led to very strong fund flows into the so-called “bond proxies,” such as low-volatility, high-dividend-paying stocks within the historically defensive consumer staples, utilities, and real estate sectors. Investors seem to be re-valuing these “bond surrogates” less as traditional stocks and more like bonds. In my view, this is where things could bubble over.
Just take a look at the recent post-Brexit move to new highs. Usually, stock rallies are driven by aggressive growth or cyclical stocks (e.g., technology, consumer discretionary stocks), while defensive sectors lag behind. This time it was exactly the opposite, as defensive plays pulled the broader market out of its two-year trading range. Most unusual.
This would be a fundamentally unsustainable rally if it happens, because the revaluation would be driven entirely by a decline in interest rates and in the equity risk premium (the excess return of stocks over Treasuries), as opposed to improved earnings growth. It’s not what sustained bull markets are made of. For now, with rates up a bit in recent weeks, I will assign a low probability to this regime. But it’s not a zero probability, so it’s something we need to keep an eye on.
stocks  investing  pension  retirement 
september 2016 by fallond
No Signs of Complacency at Vanguard
Even as it has grown into a $3.5 trillion behemoth in 41 years, Vanguard's core values and mission remain intact. Vanguard continues to focus on helping individual investors succeed, although what form this takes continues to expand and evolve. At the center is its unique structure: Vanguard remains the only firm owned by its fundholders, freeing it from the conflicts of interest inherent in other ownership structures. For Vanguard, that has manifested in a sensible lineup of typically core-oriented strategies and a history of sharing economies of scale with clients in a much more meaningful way than many of its competitors.
investing  retirement  funds  pension 
september 2016 by fallond
Are You Saving Enough To Retire? Here’s A Better Way To Keep Track | Stock News & Stock Market Analysis - IBD
Fidelity Investments suggests setting aside an amount equal to your annual salary by age 30 and twice your salary by age 35. By age 40, your nest egg should be triple the size of your pay. It should be quadruple by 45. At 55, it should be seven times. By age 60, it should be equal to your salary times eight.
pension  retiremement 
may 2016 by fallond
The Pensions Authority - Pensions Calculator
Current Pension of €4750 + €12132 State = €16000
Shortfall of €27600 based on 60% requirement of current salary
State Pension kicks in at 68
pension  investment  retirement 
february 2016 by fallond
What's Your Number - Sizemore Insights
Step #1: Grab a piece of paper. Write down a yearly income number you think you can live on in retirement. Try to be honest and reasonable and let your current monthly expenses be your guide.

Now, once you have that number… add 20% to it. You know as well as I do that expenses always seem to find a way of turning out to be more than you expected.

Step #2: OK, now that you have your “real” income number, start subtracting any “guaranteed” income sources. This includes things like Social Security or any pensions you have.

So, let’s say you need $100,000 to live every year (after adding in your 20% cushion). And let’s assume you expect to get $40,000 per year from Social Security, and another $20,000 from a private pension.
pension  planning  retirement  investing 
february 2016 by fallond
How Much Can You Safely Spend in Retirement? - The Experts - WSJ
The next strategy set includes specific allowances for portfolio depletion because they are based on volatile investment portfolios (stock and bond funds) that can be depleted. For a retiree seeking inflation-adjusted spending, this is the domain of what is known as the “4% rule.” Based on U.S. historical data, the 4% rule suggests retirees can withdraw 4% of their retirement date assets, adjust this spending for inflation in subsequent years, and not deplete their portfolio for at least 30 years. However, I think that 4% can be too aggressive in today’s low-interest-rate environment. I estimate that at the present, sustainable withdrawal rates could vary from 2.35% to 3.51% depending on how aggressive someone feels. I define aggressiveness as using a higher stock allocation and also spending more with an understanding that this increases the risks of running out of money.
retirement  pension  planning 
january 2015 by fallond
The Allure Of Quality In An ETF | ETF.com
Among the three, I like QDF as a defensive play against an overbought market. It avoids major sector bets shown by the other two funds; has less market risk; and tends to capture a bit more market upside than downside over the past 12 months. (Please see the Fit tab of each report to see the relevant analytics.)
investing  etf  dividend  retirement  pension 
september 2014 by fallond
7 fatal flaws in America's 401(k) plans - MarketWatch
Workers should be able to put their money into the asset classes that are most likely to make their money work well for them over the long run. I believe every plan's menu of choices should include nine equity asset classes plus a short-term and intermediate-term bond fund — and each one should be available through a low-cost index fund.
investing  pension  retirement 
september 2014 by fallond
Gen X Must Step Up Its Retirement Savings - MainStreet
Gen X-ers, who were born between 1966 and 1975, lost the most wealth during the Great Recession compared to other generations –
45% or an average of $33,000 of their funds vanished during the economic downturn between 2007 and 2010, according to a report by
Pew Charitable Trusts in 2013.
investing  pension 
august 2014 by fallond
A Case for Index Fund Portfolios | The Big Picture
A Case for Index Fund Portfolios. (Always the way - this is a PDF Case study)
investing  trading  pension 
may 2014 by fallond
Wish You Had A Pension? | zero hedge
How much you can put away is a function of many factors including your age (an actuary calculates all this), but the doctors in their 50s are generally putting away $180,000 each a year for themselves and $15,000 a year for younger staff members on a tax-deferred basis (this does wonders for their income tax liability). After 10 years, they will probably terminate the plan, and have the option of taking slightly under $2 million each (the staff members would get $150,000 each) as a lump sum or a stream of annuity payments over their lifetimes.
money  retirement  pension 
march 2011 by fallond

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