The 78 million Americans who make up the baby boom generation started turning 65 in 2011, and almost 30 million of them have a defined contribution retirement plan such as a 401(k) account, according to the Employee Benefit Research Institute. That means these near-retirees face an important question: How much money can they afford to
[...]Full Social Security benefits are available as early as age 65, depending on your date of birth. If you choose, you may receive benefits at age 62, but your benefits will be reduced. Or you can delay benefits until age 70, in which case your benefits will increase. Which option you choose depends on your
[...]Investors may face greater challenges today than at any other time in history, given the uncertain economy and volatile markets. So where can they turn? Traditional investing wisdom holds that the solution is diversification, a concept based on the idea that by holding investments from different asset classes, the investor may increase his or her
[...]Price-to-earnings (P/E) ratio has long been a standard measure of a stock’s value – but there are more ways than one to measure it. Are you using the most appropriate measure? P/E ratio is a company’s current stock price divided by its annual earnings per share. For example, a stock trading at $40 per share
[...]Smart investors understand the importance of rebalancing their portfolios by bringing their mix of stocks, bonds, cash and other assets back in line on a regular basis – even when markets threaten that orderly mix on a daily basis. And what better time to rebalance than year-end? The idea behind rebalancing is simple. If you
[...]There has been plenty of drama recently, with the debt-ceiling debate, the downgrade of U.S. debt and concerns about European debt. But weathering such storms doesn’t have to be gut-wrenching, as there are some alternative investment strategies for volatile markets. For example: Move to Cash: While putting all your assets in cash for the long
[...]Late last year, financial analyst Meredith Whitney rattled investors when she warned that many municipalities were poised to default on their bonds, and municipal bonds sold off. Today, however, they’re making a comeback as volatility in other financial markets has rekindled interest in an asset class that has long been considered a solid investment. Municipal
[...]Investors who have reached age 70½ can make charitable donations directly from their traditional individual retirement accounts (IRAs), saving taxes in the process. But you need to act quickly, because this opportunity will expire at the end of 2011 unless Congress acts. This donation option is called a qualified charitable distribution (QCD). Unlike most IRA
[...]What you don’t know can be costly – which is why you should be familiar with the ins and outs of your retirement savings plan. Such plans include individual retirement accounts, 401(k) plans and other retirement savings vehicles. You probably know such vehicles have some fees – but do you know what those fees are
[...]Real estate investment trusts (REITs) may present a compelling investment option in today’s economic and market environment. Despite the dismal state of the U.S. real estate market, many REITs have performed well recently. Housing prices were down again in the first quarter of 2011, according to the S&P/Case-Shiller national home price index. The index shows
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