In the past century, the average inflation rate in the U.S. has been 3.22%. That means you need to factor in inflation when saving for your retirement. You will also need to consider the cost of day-to-day living, such as childcare. As you get closer to retirement, these expenses will no longer be necessary.
Wenk founded Retirement Wealth Advisors
Founder and CEO of Retirement Wealth Advisors, Wenk is a serial entrepreneur in the investment industry. He has received multiple awards, including GRBJ Newsmaker of the Year in 2016 and EY Entrepreneur of the Year in 2018. He has also founded Altruist and FormulaFolios, two other firms he co-founded with his wife, Deborah Kempker.
The firm specializes in financial planning and portfolio management for retired individuals. Its team consists of licensed insurance agents and investment advisor representatives and oversees more than $2 billion in assets under management. Its clients are able to access a personalized investment plan designed to help them meet their goals.
TD Wealth offers mutual funds with 12b-1 fees
When you’re investing for your retirement, it’s important to know what fees you’ll be paying for your funds. These fees are known as marketing or management fees, and they typically range from 0.25% to 1% of your fund’s value. Investing with funds with Perks lower expense ratios can help you get the most from your money.
The program is available through TD Wealth private client group, a division of TD Bank, N.A. Its affiliates include Epoch Investment Partners, Inc., which is a federally registered investment adviser.
Home equity is a major source of retirement income
If you plan on retiring, home equity can be a major source of retirement income. Home equity is the difference between the balance of your mortgage and the value of your home. The value of your home can be used for a number of purposes, from home repairs to purchasing a new car. However, you should be aware that home equity lines of credit typically carry variable interest rates, which can make them difficult for retirees on a fixed income.
Another option for leveraging home equity is by taking out a reverse mortgage. These loans are also known as home equity conversion mortgages and can give you extra money to supplement your retirement income. Unlike a traditional mortgage, the proceeds from reverse mortgages are tax-free.
The 4% rule
Many financial experts have criticized the 4% rule for retirement spending as being too restrictive. They say it’s difficult to predict when you will need to take out money from your retirement account. Furthermore, the financial landscape has changed in recent years. While the 4% rule is still a common guideline, it might not be the best choice for you.
The 4% rule assumes a 30-year horizon, which might not be enough. Considering the fact that the average remaining life expectancy for people turning 65 today is less than 30 years, this rule is not appropriate for some people. It’s also important to keep in mind that retirement savings can grow in value over a longer period than the 4% rule allows.
Costs of investing in a traditional individual retirement account
Investing in an IRA can be costly, especially when fees are added to the amount you are investing. According to a report from the Pew Research Center, in 2018, investors lost $980 million in extra fees. In aggregate, this would mean a loss of $45.5 billion over 25 years. But, there are ways to minimize fees.
One way is to use a robo-advisor. You can select a portfolio based on your age, risk tolerance and when you will need the money. Moreover, you can automatically rebalance the portfolio without any manual effort. Another option is to use a cash management account. With these services, you can choose the right investments and make the right choices for you. However, you need to remember that there is a small management fee that you need to pay each year. This fee is around 0.25 percent of the total amount of your investment.