As you read this, we’ve been experiencing something that hasn’t occurred on Wall Street since 2011 – a stock market correction.
Corrections are unsettling, yes – and they are also part of any ordinary bull market. Historically, they have occurred about every 18 months. This current bull is extraordinary – the S&P 500 has sailed along without a correction since October 2011 – the third longest interval with a correction in the past 50 years. That 2011 correction took three months to occur, so it was not nearly as dramatic as what we seem to be witnessing now.
Thinking in the long-term.
A correction is short-term, and your investing is long-term. The same goes for a bear market. Patience is part of investing, and when you have the patience to ride out turbulence and market shocks and stay invested, you position yourself to deal with any development.
What is driving stocks downward so violently? You can cite three things.
Global investors are starting to believe China isn’t fully admitting the trouble within its economy. Officially, China has maintained that its economy is growing about 7%. That is slow growth for China, but still the kind of economic expansion that its business sector and global investors have relied on for years. A key flash factory PMI for China came in at 47.1 for August – a reading deep into contraction territory, down from 47.8 for July. China’s economy relies heavily on its manufacturing engine, and this signal hinted to many investors that the Chinese economy is currently growing far less than the official forecasts project.
Oil prices are still descending, partly on the assumption that China will demand less of the commodity. Light sweet crude even went under the $40 mark Friday for a moment; it may close under $40 this week for all investors know.
Wall Street still assumes that the Federal Reserve could raise interest rates next month. The latest Fed policy meeting minutes did note some conflicting views, but even the latest (tame) consumer price index and factory output readings may not dissuade the Fed from its intent to start tightening.
The point is that these are short-term issues. They may not preoccupy investors next quarter, next month, or even next week for all we know. (Remember the Greek debt crisis?) “This volatility is likely to remain with us, at least until the end of the year,” deVere Group CEO Nigel Green told TheStreet, noting that “for most long-term investors, fears of a near-term financial apocalypse are overdone.”
Headlines come and headlines go; the market has amazing rallies and harsh selloffs. Think of them as the “weather” of Wall Street. Stay patient through these headwinds, and remember that when it comes to equity investing, the sunny days have tended to outnumber the bleak ones.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
References:
1 - cnbc.com/2015/08/21/the-associated-press-qa-what-a-stock-market-correction-means-to-you.html [8/21/15]
2 - money.cnn.com/2015/08/21/investing/stocks-market-lookahead-august-21/index.html [8/21/15]
3 - thestreet.com/story/13263507/1/stocks-end-brutal-week-as-market-nears-correction.html [8/21/15]
Showing posts with label New York. Show all posts
Showing posts with label New York. Show all posts
Wednesday, August 26, 2015
Monday, August 17, 2015
A 3-step plan to getting the retirement income you need
My wife & I have substantial 401(k) balances & hope to retire in five years. But we're not sure about how to turn our savings into income. We're considering buying an annuity, but don't know whether that's a good move or whether we should be doing something else. What do you think? -Ken R.
I think that you and your wife need a retirement income plan, a detailed strategy for figuring out how much income you'll need to live the retirement lifestyle you envision and coming up with a realistic way to generate that income.
I think that you and your wife need a retirement income plan, a detailed strategy for figuring out how much income you'll need to live the retirement lifestyle you envision and coming up with a realistic way to generate that income.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Saturday, August 15, 2015
Green Retirement Communities Are Sprouting
Is “green” living important to you? If you’re a boomer or GenX’er, the answer is likely “yes,” and interest in environmental sustainability is increasing. That’s why some forward-thinking retirement communities are offering residents everything from greener buildings to energy-efficient lighting to community gardens. And some towns are putting a focus on walkability.
According to AARP surveys, such measures are important to a large segment of older Americans. Its 2014 House and Community Preferences of the 45+ Population survey, for example, found that 61% of respondents valued their community being “easy to walk,” with those over 65 most appreciating walkability. Roughly 30% wanted their community to be near transit with an equal portion wanting to be close to a park.
According to AARP surveys, such measures are important to a large segment of older Americans. Its 2014 House and Community Preferences of the 45+ Population survey, for example, found that 61% of respondents valued their community being “easy to walk,” with those over 65 most appreciating walkability. Roughly 30% wanted their community to be near transit with an equal portion wanting to be close to a park.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Friday, August 14, 2015
The biggest Social Security mistake women make
Is 62 too young to claim for women to claim Social Security?
That is the age at which both women and men are allowed to claim, and sure enough, 40.8 percent of the women who were newly awarded Social Security retirement benefits in 2014 were aged 62. Some 65 percent were below their full retirement age, typically 66. And just 2.8 percent of the women were 70 or older, the age at which they receive their maximum Social Security retirement benefits, according to Social Security Administration data.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
That is the age at which both women and men are allowed to claim, and sure enough, 40.8 percent of the women who were newly awarded Social Security retirement benefits in 2014 were aged 62. Some 65 percent were below their full retirement age, typically 66. And just 2.8 percent of the women were 70 or older, the age at which they receive their maximum Social Security retirement benefits, according to Social Security Administration data.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Friday, July 31, 2015
What Happens If You Fumble In Retirement?
I remember when I was a junior in high school and playing in the big homecoming football game. The stands were packed and as we entered the fourth quarter I went back to receive a punt. Back then, I was a sure-handed player with good speed and aspirations to play at the next level. However, none of that mattered when the punt slipped through my hands, bounced between my legs, and slowly rolled end-over-end, out of my reach as I was sandwiched by two opposing players running full speed.
It was physically painful and emotionally disheartening because the game was on the line and the other team just recovered the ball on our 20 yard line. As I pulled myself up, I had to make the 25 yard jaunt back to the sidelines. As you might expect, it seemed like a journey of a thousand miles that had nothing but bad news and angry sentiments waiting for me.
It was physically painful and emotionally disheartening because the game was on the line and the other team just recovered the ball on our 20 yard line. As I pulled myself up, I had to make the 25 yard jaunt back to the sidelines. As you might expect, it seemed like a journey of a thousand miles that had nothing but bad news and angry sentiments waiting for me.
Damian Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst NJ 07755
Americans Left $24 Billion in Retirement Money on the Table Last Year
The average worker is missing out on more than $1,300 a year. Make sure to get your share.
Personal savings rose last year, as conscientious workers reined in their spending. But a smaller portion of those savings were stashed in employer-sponsored retirement plans, new research shows. This and other recent findings suggest that the much-vaunted 401(k) match may not be the silver bullet for retirement savings that is widely presumed.
Personal savings rose last year, as conscientious workers reined in their spending. But a smaller portion of those savings were stashed in employer-sponsored retirement plans, new research shows. This and other recent findings suggest that the much-vaunted 401(k) match may not be the silver bullet for retirement savings that is widely presumed.
Damian Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Your Retirement Checklist for Every Age
It's never too late—or too early—to start planning for your eventual retirement. The Adventist HealthCare Retirement Plan, along with human capital and management consulting services provider Hewitt Associates, has compiled a list of retirement strategy steps people should take in each decade of adulthood, from their 20s to their 60s.
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755
Wednesday, July 22, 2015
5 Best Tips to Save $1 Million for Retirement
Everyone knows that they need to save for retirement especially with company pensions becoming extinct over the next generation. At some point, you’re going to stop working and will have to live on whatever you have saved plus what you’re entitled to receive from Social Security.
Having worked with many people who have saved $1 million or more, there are patterns of behavior that they all possess that have helped them to accumulate their wealth. While there’s no denying that it helps to start with a well-paying job, earning more money is no guarantee that you’ll be set for retirement. If you want to have $1 million or more saved for retirement, here are 5 tips to help you join the millionaire retiree ranks.
Having worked with many people who have saved $1 million or more, there are patterns of behavior that they all possess that have helped them to accumulate their wealth. While there’s no denying that it helps to start with a well-paying job, earning more money is no guarantee that you’ll be set for retirement. If you want to have $1 million or more saved for retirement, here are 5 tips to help you join the millionaire retiree ranks.
Thursday, May 7, 2015
Are you emotionally prepared to handle retirement?
Fill in the blank: "When I retire, I hope to __________."
Many of us have grand ideas of trips we will take, groups or clubs we will join, home projects we will tackle or new hobbies we will take on. We look to retirement as a time to finally do all the things we've always hoped to do but never had the time to accomplish.
Many of us have grand ideas of trips we will take, groups or clubs we will join, home projects we will tackle or new hobbies we will take on. We look to retirement as a time to finally do all the things we've always hoped to do but never had the time to accomplish.
Damian Sylvia
Managing Partner
Retirement Income Solutions
These 4 Rules of Thumb Can Screw Up Your Retirement
Rules of thumb are often partly true—but the part that's wrong can wreck your portfolio. Here's what you need to know.
Retirement planning can get complicated, so we often fall back on rules of thumb, or “heuristics” as economists call them. That approach may work sometimes—and is certainly better than doing nothing—but it can be dangerous too. Here’s what you need to know about four largely-but-not-completely true tenets of retirement planning.
Retirement planning can get complicated, so we often fall back on rules of thumb, or “heuristics” as economists call them. That approach may work sometimes—and is certainly better than doing nothing—but it can be dangerous too. Here’s what you need to know about four largely-but-not-completely true tenets of retirement planning.
Damian Sylvia
Managing Partner
Retirement Income Solutions
Tuesday, May 5, 2015
Traditional retirement possibly becoming a thing of the past
It may be time to redefine retirement.
A new survey of American workers from the Transamerica Center for Retirement Studies found that 82% of the respondents age 60 and older either are, or expect to keep working past the age of 65. Among all workers, regardless of age, 20% expect to keep on working as long as possible in their current job or a similar one.
A new survey of American workers from the Transamerica Center for Retirement Studies found that 82% of the respondents age 60 and older either are, or expect to keep working past the age of 65. Among all workers, regardless of age, 20% expect to keep on working as long as possible in their current job or a similar one.
Damian Sylvia
Managing Partner,
Retirement Income Solutions
Monday, April 20, 2015
How to Build a $1 Million Retirement Plan
The number of savers with seven-figure workplace retirement plans has doubled over the past two years. Here's how you can become one of them.
The 401(k) was born in 1981 as an obscure IRS regulation that let workers set aside pretax money to supplement their pensions.
The 401(k) was born in 1981 as an obscure IRS regulation that let workers set aside pretax money to supplement their pensions.
Damian Sylvia
Managing Partner
Retirement Income Solutions
Sunday, April 19, 2015
For millions, 401(k) plans have fallen short
You need to know this number: $18,433.
That's the median amount in a 401(k) savings account, according to a recent report by the Employee Benefit Research Institute. Almost 40 percent of employees have less than $10,000, even as the proportion of companies offering alternatives like defined benefit pensions continues to drop.
Damian Sylvia
Managing Partner
Retirement Income Solutions
Powell: 8 biggest misconceptions about retirement
Perception might be reality. But that's not necessarily the case for pre-retirees. For Americans on retirement's doorstep, misconceptions are reality.
Yes, many Americans retire thinking and imagining this or that lifestyle, and the reality that awaits them is entirely different, say experts.
So, what are the biggest misconceptions people have about retirement and, more importantly, what can you do to avoid or deal with unrealistic images of your golden years?
Yes, many Americans retire thinking and imagining this or that lifestyle, and the reality that awaits them is entirely different, say experts.
So, what are the biggest misconceptions people have about retirement and, more importantly, what can you do to avoid or deal with unrealistic images of your golden years?
Damian Sylvia
Managing Partner
Retirement Income Solutions
Thursday, April 16, 2015
Retirement: The payoffs of an active lifestyle
Some people are planning ahead for their physical fitness in retirement just like they plan for their financial fitness, says one of the country's top national diet and exercise experts. And that's as it should be, he says.
If you start a few years before retirement, says James Hill, executive director of the the University of Colorado Anschutz Health and Wellness Center in Aurora, Colo., you'll be ready to go when you do retire; most people can make a lot of progress toward getting in better shape in a matter of a few months.
Damian Sylvia
Managing Partner
Retirement Income Solutions, LLC
Friday, April 10, 2015
How much do you need to save for retirement?
Not everybody has a clear idea of how to handle their retirement money. According to an assessment of retirement readiness from Voya Financial, nearly 50 percent of workers have saved less than $49,000 and 60 percent say they're worried about running out of money.
Damian Sylvia
Managing Partner
Retirement Income Solutions
Thursday, April 9, 2015
1 in 3 Older Workers Likely to Be Poor or Near Poor in Retirement
Fewer Americans have access to a retirement plan at work. If you're one of them, here's what you can do.
A third of U.S. workers nearing retirement are destined to live in or near poverty after leaving their jobs, new research shows. One underlying cause: a sharp decline in employer-sponsored retirement plans over the past 15 years.
A third of U.S. workers nearing retirement are destined to live in or near poverty after leaving their jobs, new research shows. One underlying cause: a sharp decline in employer-sponsored retirement plans over the past 15 years.
Damian Sylvia
Managing Partner
Retirement Income Solutions
Saturday, March 28, 2015
The Secrets to Making a $1 Million Retirement Stash Last
More and more Americans are on target to save seven figures. The next challenge is managing that money once you reach retirement.
More than three decades after the creation of the 401(k), this workplace plan has become the No. 1 way for Americans to save for retirement. And save they have. The average plan balance has hit a record high, and the number of million-dollar-plus 401(k)s has more than doubled since 2012.
More than three decades after the creation of the 401(k), this workplace plan has become the No. 1 way for Americans to save for retirement. And save they have. The average plan balance has hit a record high, and the number of million-dollar-plus 401(k)s has more than doubled since 2012.
Damian Sylvia
Managing Partner
Retirement Income Solutions
Thursday, March 26, 2015
Why post-retirement planning is harder than ever
You have heard the exhortations to save, save, save. Perhaps you have even managed to sock away a decent retirement nest egg. If so, good for you.
But do you have a plan for how to draw down that money?
For millions of Americans, the answer is no. While 401(k) plans usually offer a defined array of investment choices, online tools and other guidance, there is no such system in place for when workers retire.
But do you have a plan for how to draw down that money?
For millions of Americans, the answer is no. While 401(k) plans usually offer a defined array of investment choices, online tools and other guidance, there is no such system in place for when workers retire.
Damian J. Sylvia
Managing Partner
Retirement Income Solutions
5 ways to beef up your retirement savings
Research shows that many people are worried about having enough money saved for retirement.
Some don't think they'll be able to live comfortably with what they have tucked away, and even those with significant savings fear going broke, one survey showed.
But take heart. Financial experts have given this problem a lot of serious thought, and in today's special report, we look at five ways to beef up your retirement savings.
Some don't think they'll be able to live comfortably with what they have tucked away, and even those with significant savings fear going broke, one survey showed.
But take heart. Financial experts have given this problem a lot of serious thought, and in today's special report, we look at five ways to beef up your retirement savings.
Damian J. Sylvia
Managing Partner
Retirement Income Solutions
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