Helpful Financial & Lifestyle Information Compliled by Martin Lombrano
Welcome to my blog page! My plan is to keep it current and share interesting and informative articles I come across, along with my own original thoughts on relevant financial issues and concerns, and anything else might be helpful to you.
If you have any subjects or ideas about anything you would like to know and think others could benefit from, let me know at [email protected]
Enjoy!
“As Baby Boomers age, a significant number of Americans are retiring, with about 4.1 million projected to turn 65 annually from 2024 through 2027. That is about 11,000 boomers per day retiring.”
December 2024
ETFs Can Be a Retirement Game Changer
Exchange-traded funds (ETFs) have become a popular investment choice for pre- and post-retirees due to their ability to align with various risk tolerances and diversification needs with a minimum of expense. As Baby Boomers age, a significant number of Americans are retiring, with about 4.1 million projected to turn 65 annually from 2024 through 2027. That is about 11,000 boomers per day retiring.
ETFs offer retirees access to a variety of investment themes, including equity ETFs optimized for dividend yields-generate a return via a dividend regardless of stock performance, bond ETFs yielding interest on government and corporate debt, and those modeled on broader indices like the S&P 500 or with international exposure. Some ETFs also include built-in hedging strategies to guard against downside risk.
Financial experts emphasize the best ETFs for both pre- and post-retirees depend on individual situations, including overall investment allocation, time horizon, and risk tolerance. For example, retirees with a higher risk tolerance and longer time horizon might invest in growth-oriented ETFs, while those needing immediate income might prefer income-oriented investments. Generally, moving from a growth strategy to a protection strategy can occur the closer an investor get to actually retiring or shifting their income from a paycheck to their assets.
Popular ETFs include SPDR Portfolio S&P 500 High Dividend ETF (SPYD), Vanguard Dividend Appreciation Index Fund ETF Shares (VIG), and iShares Select Dividend ETF (DVY), which are used for their dividend-paying potential. Additionally, buffered ETFs, which offer downside protection, are highlighted to participate in growth opportunities while mitigating risk.
Overall, its importance to have a personalized investment strategies for retirees, considering their unique financial goals and risk profiles.
October 2024
How the Wealthy Stay Wealthy
I recently came across a great article (it’s a couple years old but everything still holds true) from Business Insider about some financial steps wealthy people take to remain wealthy. In a nutshell:
They are very disciplined saving money: Most wealthy individuals are not high-income earners but disciplined savers who consistently invest in 401(k)s and brokerage accounts.
They take advantage of comprehensive financial planning: Wealthy people have a detailed financial plan that includes budgeting, insurance, estate planning, taxes, employer benefits, and investing.
They are long-term investors: They focus on long-term investments rather than trying to time the market, aiming for steady growth over time.
They plan for retirement: They actually over-plan for retirement, using a life expectancy of 96 to ensure they don’t run out of money.
They know their tax advantages: Reducing taxes is a critical part of their financial strategy, including taking advantage of tax breaks and charitable giving to lower taxable income..
You can read the entire article here.
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