The prospect of retirement abroad can be inviting, but the decision is a major one that requires careful preparation. Financial planner Paul Wyand lays out five considerations, beginning with getting a feel for the desired foreign destination.
Economist Michael Molinski looks at some of the proposals being floated to solve America's retirement crisis and the challenges they may face. "Now is the time to get a viable retirement plan in front of President Trump and Congress, before they create a system that is not right for America," he writes.
Baby boomers are taking positive steps toward a more secure retirement, including managing their spending and planning to retire debt-free, finds a study from the Bankers Life Center for a Secure Retirement. However, the study also found that a quarter of this age group no longer invests at all and that almost 40% of middle-income boomers plan to rely on Social Security as their primary source of retirement income.
Retirement plans for K-12 teachers traditionally have little oversight, few investment options and little employee involvement, but some experts say the efforts to reform 403(b) plans are often impeded by teachers and unions. Unions "haven't been a source of advocacy on behalf of teachers, which is ironic because that's their sole job," says Scott Dauenhauer, principal and owner of Meridian Wealth Management.
Based upon today's typical costs, transferring pension liabilities to annuities sold by insurers is "significantly more attractive" to companies than holding such plans on their balance sheets, according to consulting firm Mercer. The number of companies shifting pension risks has been rising steadily since 2012, said Lynn Esenwine of Mercer.
Gold can be useful in a retirement portfolio, but history shows better alternatives for the principal reasons people invest in gold: to hedge against inflation and stock market volatility and to hold a secure asset during turmoil.
The International Monetary Fund called for a considered application of fiscal policy in the face of political uncertainty in the US, Europe and China. The agency, however, called for a greater degree of public investment "in light of low borrowing costs and substantial deficiencies in infrastructure" in many countries.