Yesterday I explained to you how even frugal retirees can have their savings sunk when unexpected health care costs arise. Running out of money in retirement is not something anyone wants. Many Americans end up working through what should be their retirement years because they failed to plan properly. If you want to better formulate a plan that includes provisions for health care costs in retirement, read through this guide from Fidelity. If you are like most Americans, health care is expected to be one of your largest expenses in retirement, after housing and transportation costs. But unlike … [Read more...]

Across America, parents are spending their retirement savings to pay their children's bills. Student loans, insurance, credit cards, and healthcare costs are just some of the bills Americans are paying for their adult children. The extra burden is forcing parents to reduce their savings each month, or even dip into their nest eggs. Megan Cerullo reports at CBS News: Half of American parents have cut back on their retirement savings to help pay their children's bills, a Bankrate.com study shows. Parents are putting their kids' car insurance, cell phone bills, credit card debt and health … [Read more...]

The answer to the question of whether long-term investing is dead or alive comes down to my favorite three letters in the alphabet: Y.O.U. When I speak with investors, most of our conversation is about what’s going on at that moment in their lives: Driving to their second home, getting ready for an exercise class, recovering from hip, knee or shoulder surgery, running to a meeting, running (walking) to rehab, or winding down from a busy work trip or a European tour. With so much attention today given to robo-advisors, financial planning and one stop investing, it’s hard to know which way … [Read more...]

Ask anyone if they’re a long-term investor and nine out of ten will tell you they are most definitely long-term investors. That is, unless something crazy happens to the market. It’s like the profile pieces you read about someone’s workout and eating regimen. Every minute of the day is carefully planned, and it seems every person profiled sticks to salads topped with salmon and the occasional piece of dark chocolate. In the real-world, life gets in the way, and it gets messy. OK, maybe it’s doable if you don’t have kids, or a job, or grandchildren, or any other fabric of life that makes it … [Read more...]

Is long-term investing dead? You would think so reading even my favored Wall Street Journal as it beats the drum for the future robo-advisors—a model that makes decisions based on an algorithm and human input (a phone rep fresh out of college) to determine your financial future. Sounds good on paper. We’ll see how well they do when markets crater and the phone lines light up like a Christmas tree. It’s happened twice already this century, and that’s when it matters most. Everyone knows that long-term investment success is hard. Maybe not everyone. I’m being too generous. But listen, if … [Read more...]

In The Wall Street Journal, Jason Zweig tells the story of Calpers, the nation's largest pension fund, and the nation's growing investments in private equity. Like Calpers, many pensions are hoping to meet unrealistic return expectations (something I have written about many times, including here, here, here, and here) by investing in private equity. The problem is, it isn't a sure bet that private equity will be able to produce the returns necessary. Zweig writes: Still, the future for private equity might not be as lucrative as the past, with money gushing in and with buyouts priced near … [Read more...]