Archive for the Category Retirement

 
 

Best Ways to Invest After Maxing Out Retirement Accounts

These committed savers ask how best to invest after they’ve fully funded their tax-deferred accounts.

From Kiplinger’s Personal Finance:

Scott and Amber Rowson are such ardent savers that they’re faced with an enviable problem. They contribute the maximum amounts to their tax-deferred retirement accounts, and they stash additional savings in 529 college-savings plans for Beckett, 5, and Ayla, 2. Now they’re stumped about how and where to invest still more without incurring tax headaches or excessive risk.

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Stable Funds in Chaotic Times

These funds deliver predictable results for retirement savers.

From Kiplinger’s Personal Finance:

When the financial crisis ravaged the stock market and many parts of the bond market, stable-value funds stood out with their combination of modest, positive returns and their, well, stability. As a result, retirement savers clamored for these steadfast funds and the security they offer. The percentage of assets invested in stable-value funds in large-company 401(k) plans that offer a stable-value option rose from 20% in November 2007 to 36% in March 2009, according to Hewitt Associates, a benefits-consulting firm. Although the total amount invested in stable-value funds has fallen as stocks have recovered, such funds retain more than $642 billion in assets, which makes them the largest category of fixed-income investment in 401(k) plans.

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ETFs Target Retirement

Target-date funds are now available in low-cost exchange-traded flavors.

From Kiplinger’s Personal Finance:

Like peanut butter and jelly, target-date exchange-traded funds should be an irresistible combination. These funds aim to marry the low costs of investing in ETFs with the set-it-and-forget-it ease of funds that shift to a more conservative mix of stocks and bonds as they approach their target dates.

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