Monitoring Your Portfolio

Originally posted on David Bayer:

You probably already know you need to monitor your investment portfolio and update it periodically. Even if you’ve chosen an asset allocation, market forces may quickly begin to tweak it. For example, if stock prices go up, you may eventually find yourself with a greater percentage of stocks in your portfolio than you want. If stock prices go down, you might worry that you won’t be able to reach your financial goals. The same is true for bonds and other investments.

Do you have a strategy for dealing with those changes? You’ll probably want to take a look at your individual investments, but you’ll also want to think about your asset allocation. Just like your initial investing strategy, your game plan for fine-tuning your portfolio periodically should reflect your investing personality.

The simplest choice is to set it and forget it–to make no changes and let whatever happens happen. If…

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Working During Retirement

Originally posted on Michael Greer:

Planning on working during retirement? If so, you’re not alone. An increasing number of employees nearing retirement plan to work at least some period of time during their retirement years.

Why work during retirement?

Obviously, if you work during retirement, you’ll be earning money and relying less on your retirement savings–leaving more to potentially grow for the future and making your savings last longer, as shown in the example below:

Assumptions:

• Retirement savings $1,000,000


• Earnings rate 6%


• Preretirement income $150,000


• Social Security $2,000/month


• Desired income replacement 80% ($120,000/year,

$10,000/month)

Without working, you’ll need to use $8,000 ($10,000 desired income minus $2,000 Social Security) of retirement savings per month, and your savings will last 16 years.
But if you earn this amount monthly:	for 3 years, your savings will last:	for 5 years, your savings will last:	for 10 years, your savings, will last
$1,000	17 years	18 years	19 years

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