Many Stock Market Investors Haven’t Kept Up With Inflation Over the Last 20 Years – DALBAR 2019 Report

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What kind of return would you have to get in the stock market to make it worth the risk and gut-wrenching ups and downs?

Would you put your life’s savings at risk for a 5% annual return?

Or would you require at least a 7% return?

Or maybe even a 10% annual return?

If you’re like most people we’ve surveyed, you wouldn’t do it unless you thought you could get at least a 7% annual return over time, right?

Here’s the Harsh Reality of the Actual Returns Investors Are Getting…

I hope you’re sitting down because this is going to floor you: According to a new study, the typical investor in equity mutual funds has gotten only a 3.88% annual return… over the last 20 years!

But it’s actually much worse than that. Here’s why… [Read more…] “Many Stock Market Investors Haven’t Kept Up With Inflation Over the Last 20 Years – DALBAR 2019 Report”

Who’s the Bozo Administering Your Retirement Plan?

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When you have a plumbing issue, you call in a qualified plumber, right? When you need a medical procedure, don’t you want a qualified doctor? When you go to get your car fixed, aren’t you going to hand it over to a qualified mechanic?

So why would you turn your retirement plan over to an unqualified administrator?

Wait! You didn’t know that you’ve placed your hard earned retirement money in the hands of someone who very likely doesn’t know what they’re doing? It’s one of the common retirement planning traps I’ve been covering in this blog.

According to SmartMoney magazine, 90% of the country’s 401(k) plans are watched over by people who “need no special qualifications and no investing expertise or experience.” [Read more…] “Who’s the Bozo Administering Your Retirement Plan?”

Why Your Retirement Account is Missing $186,000

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An eye-opening Report released last month by the Center for Retirement Research at Boston College reveals that the fees charged by mutual funds and 401(k) and IRA plans will slash the value of the typical person’s account by almost 37%!

That means if your account should have been worth $500,000, you end up with only $314,000 – all because of stealth fees that are draining your hard-earned savings! That’s $186,000(!) of your money that will end up in other people’s pockets, not yours.

These money-sucking fees often apply even to funds that track stock market indexes such as the S&P 500… as well as to the “Target Date” Funds that most employers now automatically put employees’ 401(k) money into.

Listen to John Bogle, the founder and former CEO of Vanguard, who many consider to be the father of the indexed mutual fund, quoted in MarketWatch:

Question: “If you pay a hefty fee to an active manager, what happens to your potential return?” [Read more…] “Why Your Retirement Account is Missing $186,000”

Breaking news roundup from
Bank On Yourself

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Here are summaries of three important news stories affecting your money and finances…

1. Investment brokers fight rule to favor best interests of clients

Did you know that brokers are not necessarily required to act in your best interest – even if it’s your retirement savings at stake?

The investment industry – from large Wall Street firms to small independent advisors – is spending millions of dollars to fight a rule that would require a broader group of brokers and planners to put their clients’ interests ahead of their own.

The Labor Department said it would release the proposed rule in January, but has already indicated it may miss that deadline. That’s not the first delay on this, though. The rule was originally introduced in 2010 and was rescinded the following year after brokers and lawmakers protested. Wow!

[Read more…] “Breaking news roundup from
Bank On Yourself”

Why half of households will STILL struggle in retirement

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Even with the run-up in the stock market and housing prices, half of all American households are at significant risk of not being able to maintain their current standard of living after retirement.

That’s the conclusion of a surprising new study released last week by the Center for Retirement Research at Boston College.

That’s only slightly better than the Center’s National Retirement Risk Index showed in 2010, in spite of a 45% inflation-adjusted increase in the stock market and a 6% increase in home prices since then.

In fact, the Center’s research shows the picture is even worse than in 2007, which is why the study concluded…
[Read more…] “Why half of households will STILL struggle in retirement”