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Financial Beacon
Future Stock Market Returns
Since the lows of 2009, the S&P 500 index is up nearly 120%. Before this rally there were those who had been talking about low stock market returns for years to come. With the stock market having rallied so far so quickly, the odds of lower returns going forward might even be higher now.
I want to take a look at how various average returns for the market might impact a typical person’s retirement situation. I will use Monte Carlo analysis in our retirement planning application to run various scenarios where average stock market returns are low for the next twenty years and then revert to historical return levels after that.
Watch Out For A Change To The Social Security COLA Index
by Doug Carey
As we get closer to the “fiscal cliff” more politicians have been discussing how to reduce the coming crushing burden of entitlements. Of course, most of those in Congress do not want to be the ones who actually cut anything for fear of losing votes. But one way they can reduce social security payments without calling it a cut, is to change how social security payments are indexed to inflation.
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The Most Important Retirement Goal
By Doug Carey
Most people have several goals in retirement. They want to retire at a certain age, they want to buy a vacation home, a new car, go to Europe twice a year, etc.
What $1 Million Will Get You In Retirement
By Doug Carey
I spend a lot of time helping people understand how much money they will need to meet their retirement goals. Today I want to look at this another way: What will $1 million actually get you in retirement? This is an interesting question
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The Impact Of Life Expectancy On Retirement Plans
By Doug Carey
One of the biggest variables that confront people when planning retirement is their life expectancy. Some folks like to use the life expectancy of their age group or the life expectancy numbers that exist for a person born today. But this can be very misleading and can result in retirees running out of money in retirement.
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