By: Steven Muller
Many of the old rules for retirement investing no longer apply. Facing longer life spans, increasing healthcare costs, and a market in crisis, retirees will need more growth in their portfolios during the coming years and decades. At the same time, they need the assurance that a 37 percent market drop--as we saw in 2008--won't completely devastate their remaining nest egg. A growing number of financial planners are rethinking the conventional wisdom. (Remember the old adage that you should subtract your age from 100, and devote that percentage of your portfolio to stocks?) Here are five new rules to consider: Separate your investments into different pots, don't reach too far for yield, make it a muni, go for dividends, and consider "alternatives".
In this aritcle from Yahoo! Finance, the author talks about how conventional wisdom on retirement planning is no longer suitable in today's world. She has come up with five new ideas how to save and be prepared for retirement.
Many of the old rules for retirement investing no longer apply. Facing longer life spans, increasing healthcare costs, and a market in crisis, retirees will need more growth in their portfolios during the coming years and decades. At the same time, they need the assurance that a 37 percent market drop--as we saw in 2008--won't completely devastate their remaining nest egg. A growing number of financial planners are rethinking the conventional wisdom. (Remember the old adage that you should subtract your age from 100, and devote that percentage of your portfolio to stocks?) Here are five new rules to consider: Separate your investments into different pots, don't reach too far for yield, make it a muni, go for dividends, and consider "alternatives".
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