A new study from Harvard Business School says it's possible money can buy happiness. More specifically using money to buy free time can make people happier. The researchers surveyed people in the U.S., Canada, Denmark and The Netherlands to find out "whether—and how much—money they spent each month to increase their free time by paying someone else to complete unenjoyable daily tasks." Then those surveyed responded to another questionnaire about "time stress." Karen Kaplan summarized the results at the LA Times, writing: Survey-takers were asked whether they paid other people to do … [Read more...]

I’ve spent some time lately discussing states with booming economies like South Carolina, and states that are near bankruptcy, like Illinois. Depending on a state’s fiscal strength, or lack thereof, your earnings could be targeted to fill the gaps. And some states have a cost of living so high, no matter what you’re making, it’s nearly impossible to save. Maximizing your savings early on is the most important thing you can do to jumpstart the power of compounding in your retirement portfolio. But many Americans aren’t making very much money until their peak earning years, from say 45 to 65. … [Read more...]

The $1.5 billion pension fund has 5,786 bus and train divers, track workers, and other employee members, reports the Boston Globe. And there are 6,685 retirees participating in the fund. Those numbers aren’t sustainable. Apart from numbers that look hard to reconcile, the fund is now embroiled in a bit of a scandal. Beth Healy reports at the Globe: Michael Mulhern took home $2.2 million in compensation as chief of the MBTA Retirement Fund in the eight years after the financial crisis, including $216,329 in 2016, when he worked just seven months. The compensation, released in response to a … [Read more...]

Who would have thought you could make money fishing in retirement? I’ll explain. “Hey, E.J., quick question. I’ve got a minute before my next pick-up.” That’s when it hit me. He wasn’t joking about working for Uber. Nice! What a great way to pick-up some extra cash. Why wouldn’t you work for Uber? The money is good. Much better than I had expected. And, he told me, “I’m meeting some incredible people.” He is learning a ton. How many retirees can say they’re meeting new people at a part-time job, having fun, while being the boss? It’s meeting people and getting some fresh ideas that … [Read more...]

I've warned investors for years about the fees hiding in their 401(k) plans. Often employees don't have much say over how their 401(k) savings are invested. Some of the investments in their plans could be loaded with fees that eat away at their returns. A study reported on by Andrew Osterland at CNBC shows that most retirees don't even know what's lurking in their plans. He writes: Are you paying 12b-1 fees in your 401(k) plan? Are you charged front- or back-end loads on the funds you pick for the account? What's the size of the sub-transfer agency fee paid to the third-party service provider … [Read more...]

Originally posted September 7, 2016. In October 1993, at the peak of the investment newsletter industry, Money magazine authored a Money Newsline feature headlined Big Investment Newsletters Worth The Money. Richard C. Young was pictured on the cover of this special issue of Money and featured inside in a multi-page article, Your Smartest Moves Now. Money analyzed the five biggest circulation investment newsletters and rated each A to C-. That was 23 years ago. Money’s #1 rating and the only letter to receive an “A” was Richard C. Young’s Intelligence Report. All these years later … [Read more...]

In an interview with Fidelity Viewpoints, Stanford Center for Longevity founding director Laura Carstensen says the old model of retirement just won't work anymore. Life expectancy throughout most of human evolution was somewhere between 18 and 20 years. Life was short. By the mid-1800s life expectancy had reached the mid-30s in the United States, and in 1900 it was 47 years. By the end of the century, life expectancy had reached 77. It gained 30 years in one century—that’s unprecedented. More years were added to average life expectancy in the 20th century than all the years added in all … [Read more...]

Throughout the years, I've extolled the KISS principle, an abbreviation of Keep it Simple, Stupid. Over complicating matters rarely generates benefits greater than the drawbacks associated with all the complication. GE stumbled on the same idea when it combined three digital businesses into a single Digital Solutions unit a few years ago. The business was having trouble generating new business because it took potential clients months to parse through GE's reams of contract language. To speed up business and boost revenue, GE focused on creating a single plain language contract to replace its … [Read more...]

Your answer to this question is probably not a whole lot, at least in terms of your investment portfolio. Some surprises may be great, like if you've saved more than you needed, but you could also be devastated by not planning for things like medical expenses. In The Wall Street Journal Glenn Ruffenach writes that retirees often find themselves in surprising situations, whether for better or worse. The surprises ran the gamut, from the wonderful to the devastating. Many readers told us they were surprised that their savings are holding up just fine, although several said that household … [Read more...]

What good is your retirement if you’re not healthy enough to enjoy it? Not that retirement is in this guy’s mind. Dan Pompei wrote at BleacherReport.com that at 39, Tom Brady is in better shape than ever. At 39, Peyton Manning no longer could throw the way he used to. He missed seven starts with a foot injury and had a 67.9 passer rating—easily the worst of his career. And he knew it was time to exit the arena. At 39, Brady led the AFC in passer rating, yards per attempt and passing yards per game. The Patriots won 11 of his 12 starts, leading many to believe he was the league's MVP. And … [Read more...]