From 1989 to 2008, a twenty year time period, the S & P 500 averaged an 8.43% return. Because of the large bull run in stock in the 1990s, many people decided to retire right at the top in 1999. Having gotten used to 20% annual returns, many of those new retirees expected they could comfortably withdraw five percent annually from a fully invested equity account, and still watch their total net worth grow over time. Today, find out why an engineer in his sixties who retired with a million dollars--all in blue chip stocks at the end of 1999, was left with less than three hundred eighty five thousand dollars just three years later--with thirty years to go in retirement. Did he get a "do over?" Unfortunately not! Find out what he got instead, in today's Market Intel segment--it's one that you definitely do not want to miss! MASTERING MONEY is on the air!
When is the best time to retire—during a bull market or a BEAR market? Studies show that every one percent gain in the S & P increases the likelihood of those considering retirement to take the plunge and retire, by a factor of 2.5%. In other words, hard data shows that a person on the verge of retirement is 25% more likely to go ahead and retire if the S & P is up by 10%. If it is up by 20% the likelihood of deciding to retire rises by 50%. So, most people choose a bull market to retire into. Here’s the problem—retiring near the end of a bull market increases the risk of income failure in retirement-- dramatically! On today's show, we'll share data on just how risky it is to retire into an aging bull market, especially with these low interest rates. Steve will then explain how clients are retiring on a six figure income even if they don't have a million dollars. MASTERING MONEY is on the air!!
Is it worse to suddenly lose your financial nest egg or never to have saved any money at all? A recently released medical study, taken over twenty years and published in the Wall Street Journal says, that either way, there’s no happy answer. Both scenarios can increase a person’s risk of dying within the next 20 years by more than 50%! After the crash in 2008, there were notable spikes in clinical depression, substance abuse and suicides says the Journal. The study was also published in the Journal of the American Medical Association, showing how losing one’s life savings in the short term might curtail one’s lifespan in the long term. Today , we'll explore what scientists say could be the solutions to living happier and longer in retirement, and why women are particularly at risk! First the problems, then the solutions!! MASTERING MONEY is on the air!!
Portfolio performance encompasses both return AND risk. Smart investors who want to get beyond a haphazard approach and bring order into their portfolio always consider both the potential for gain-- and compare it to the risk being taken. These two key factors are expressed in two terms you hear often as an investor: Alpha and Beta. Do you know how to use them? Today, we'll get back to the basics and simplify them to help you make better financial decisions. The goal is grow your money with less risk--and we'll talk about several ways to do it on today's show. MASTERING MONEY is on the air!!
..It’s a MOTLEY FOOL MONDAY!! The Motley Fool is one of America’s most popular radio programs dedicated to making money in the Stock Market. It's been heard by millions of listeners over the years, now you can hear a special broadcast of the Motley Fool every Monday on Mastering Money right after an update of late breaking financial news...it's a power packed show today that you don't want to miss...MASTERING MONEY is on the air!
Allocating your money for retirement is a challenge even when you aren’t in the tenth year of a historic bull market coming off all time high’s, with political turmoil on the horizon! The choice of how much to allocate to growth assets versus fixed income assets in retirement is not made easier by the fact that interest rates on traditional fixed income assets have reached eighty year lows, making bonds and bond mutual funds losing propositions. Today, we'll get specific on how you can invest your money in retirement, and then independent CPA Nick Stefaniak joins us for the Q & A with an interesting tax comparison you don't want to miss! MASTERING MONEY is on the air!!
Had you invested $100,000 in 1988 in the pharmaceutical company Johnson and Johnson, and chose not to reinvest dividends, you would have over four million dollars today. If you HAD reinvested your dividends, you would have over NINE million! And, if you decided to start spending those dividends this year, you would have over two hundred and fifty five thousand dollars coming to you in the next twelve months alone. All from a one hundred thousand dollar original investment, adding no other money. Today, we’ll show you how to put a plan together for financial independence. MASTERING MONEY is on the air!
..It’s a LARRY KUDLOW MONDAY! Commentary from the former Ronald Reagan economist and new Donald Trump advisor is featured on Mastering Money today with high powered guests talking about the the markets, politics, China, North Korea, Donald Trump, Muller, the new tax law, and much more!—that’s ALL coming up NEXT—and you definitely don't want to miss it!! MASTERING MONEY is on the air!!