Can you retire with $1 million? A million dollars used to seem like all the money in the world. In 1960, for example, it had the buying power of approximately $8 million today, according to Investment News. But now, retirees wonder if it’s enough. A survey by Investment News found that 449 advisers cited asset levels and longevity as the two biggest challenges to a stable retirement plan. Retirees who might plan to withdraw 4 percent to 5 percent from their $1 million portfolio — a range considered safe by many financial advisers — would have an income of $40,000 to $50,000 per year.
Is College Worth It? Clearly, New Data Say Some newly minted college graduates struggle to find work. Others accept jobs for which they feel overqualified. Student debt, meanwhile, has topped $1 trillion. A new set of income statistics answers those questions quite clearly: Yes, college is worth it, and it’s not even close. For all the struggles that many young college graduates face, a four-year degree has probably never been more valuable.
Robert Shiller: Falling mortgage rates may ‘stimulate’ home sales Mortgage rates have dropped so much this year – falling about one-third of a percentage point — that the low levels could “stimulate” the housing market, Nobel Prize-winning economist and home-price expert Robert Shiller said Tuesday. The average rate for a 30-year fixed rate mortgage hit 4.14% for the week that ended May 22, the lowest rate since October and down from 4.53% at start of 2014, according to federally controlled mortgage-finance giant Freddie Mac. “That’s getting back down there and that might stimulate the market,” Shiller said.
In investing, tortoises often beat the hares Slower-growing companies often initiate dividends to provide their shareholders with a kind of guaranteed return, paid quarterly. It’s an enticement to offset investors’ lowered expectations. Investors, especially the media kind, love to talk about the exponential growth stories; the next Tesla or Netflix or Amazon. The kind of companies that reinvest their earnings in future growth instead of paying a dividend. These stocks sell air time because they appeal to our desire to hit it big. Just once. But that’s not investing. Investing is slow and steady. Investing requires time for earnings to grow and dividends to compound; for new products to develop and gain market share. And for stock price discrepancies to moderate.
Many employees hit with higher health care premiums More employees are getting hit with higher health insurance premiums and co-payments, and many don’t have the money to cover unexpected medical expenses, a new report finds. Employees are worried about covering their medical costs: 49% have less than $1,000 to pay for unexpected out-of-pocket medical expenses; 53% would borrow from their 401(k)s or credit cards to cover unexpected medical costs; 66% say they wouldn’t be able to adjust to the large financial costs associated with a serious injury or illness.