A digest of timely information and insight about finance, investing, and retirement.
More people are saying they want to retire before 60. Is that wise? | MarketWatch
When it comes to retiring — especially if you hope to retire early — look before you leap. Americans are apparently more optimistic about their financial prospects, saying they intend to retire on average at age 62, two years sooner than they did five years ago, according to MassMutual’s 2018 State of the American Family survey. Additionally, four in 10 intend to retire before age 60, up from 32 percent when the survey was last conducted. This optimism may be misplaced. While financial markets and 401(k) balances have trended higher in the past five years, many Americans may have a false sense of security when it comes to being ready to retire. Pre-retirees should gauge their readiness for retirement by checking, and potentially adjusting, both their financial and emotional state.
Index investing: Not as passive as you might think | Pensions & Investments
Index investing isn’t really passive, according to a University of Toronto faculty member. “Rather than being passive in any meaningful sense, index investing simply represents a form of delegated management,” wrote Adriana Robertson, assistant professor in the University of Toronto law faculty, in a paper, “Passive in Name Only: Delegated Management and ‘Index’ Investing,” issued in November. “Not only are these indexes managed portfolios in the strictly financial sense, by their construction they imply a substantial amount of delegated decision-making authority.”
Retiring abroad in 2019? Consider these top 5 locations | CNBC
If you’re leaving the U.S. in search of a retirement paradise, be sure to look south. That’s because the top retirement haven for globe-trotting retirees is Panama, according to a new report from International Living. Using its Annual Global Retirement Index and evaluating countries based on 13 categories, including the cost of living, retiree benefits and more, the travel website ranked its top destinations for retirees. “There are three or four perennial favorites in the top, including Mexico and Panama,” said Dan Prescher, senior editor at International Living. “These places are just so logistically easy to get to, and they have established expat communities, so they’re easy to settle into,” he said. Just be sure that you give your financial planner and accountant a ring before you board the plane. You should know how a move overseas could affect your taxes.
Retirement is a transition, not a destination | Forbes
It’s less important to think about what you’re retiring from and more important to think about what you’re retiring to. Some industries no longer have a mandatory retirement age, so the decision may be up to you. Many of you can now negotiate if, when, and how you want to retire. This reality may be both exciting and daunting. It can be complicated if you’re an individual living alone and even more complicated if you’re in a relationship.
Why Alaska should return to a defined benefit plan to retain good teachers | Anchorage Daily News
The University of Alaska has an ambitious goal to grow its own teachers and double the number of education graduates hired by 2025. Homegrown Alaskan teachers do tend to stay and have longer careers in Alaska. But the state university’s initiative to double the number of locally grown teachers produced and hired in Alaska won’t happen until the Legislature rectifies the retirement structure for these professionals. The public needs to be aware of the many significant financial factors impacting young teachers’ decisions and influencing Alaska’s 20-30 percent teacher turnover rate. Outreach and mentoring will not be enough to reduce it.
Defined benefitAlso known as a pension, this is a type of pooled retirement plan in which the plan promises to pay a lifetime benefit to the employee at retirement. The plan manages investments on behalf of members, and the retirement benefit is based on factors such as age at retirement, years of employment and salary history.
