Tuesday, 29 January 2019

Retirement Analytics

Analytics is the most sophisticated analysis of data. It allows better decisions to be made. Retirement Analytics is data that helps track investment trends. If you are among the majority of Americans who do not plan to work in retirement, then you need a retirement calculator that utilizes the latest retirement analytics. Through the retirement calculator, you can see 
  • how management fees impact your plan,  
  • how inflation will play a hand in your retirement, 
  • if your asset allocation stands up to performance analysis, and 
  • your appropriate withdrawal rate. 

This crucial retirement analytics are explained below: 
  • Through the use of the retirement calculator you can view the impact that management fees have on your plan. Usually, management fees account for roughly one percent loss of your portfolio each year. One percent may not sound like an insignificant amount until you consider that on a $300,000 portfolio, that means you will have to make $3,000 a year to just breakeven. 
  • Do not underestimate the withering effects of inflation on your purchasing power. Historically, the inflation rate has been about 3 percent. Thus, with just the average inflation rate of 3 percent, your costs double every twenty-four years. You can expect to spend as much time in retirement as you did when you worked. Therefore, you can expect to see your expenses double during your retirement years. Ouch. 
  • If your assets are invested too conservatively, you risk that your money will not keep pace with your expenses and you will run out of money before the end of your life. Conservative investing usually means that a significant portion of your retirement portfolio in low-risk, low-return asset - like bonds, T-bills, savings accounts and money market funds. 
  • Calculation of your appropriate withdrawal rate is extremely important. You need to make sure you follow the government's minimum distribution requirements for retirement accounts. 

This is another item that can easily be projected with the help of a good retirement calculator like the one found at retirementcalc.com. How do I keep up-to-date on the latest news impacting my retirement? To keep informed about retirement topics, try a FREE membership to Retirement Intelligence Information Services. At no cost to join, you will receive a bi-monthly newsletter full of financial information to inform and empower you to have a successful retirement. 

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