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The Hidden Risks in Your 401k- Season 8: Episode 7
Managing Your Financial Future

The Hidden Risks in Your 401k- Season 8: Episode 7

March 8, 2022

In the world of investing, time can be one of your biggest allies.  As your time span grows shorter, though, your risks tend to go up: if you need your money sooner rather than later, your stock investments could take a downturn at just the wrong time, leaving you without the funds you need. A Target Date Fund in a 401k is designed to deal with this time-related risk.  As you get closer to retirement, and thus closer to needing your funds, the investments are supposed to become more conservative overall, less volatile, with the goal of preserving your principal. But it doesn’t always work out this way. 

Tossing the “4-Percent Rule” Out the Window- Season 8: Episode 6
Managing Your Financial Future

Tossing the “4-Percent Rule” Out the Window- Season 8: Episode 6

March 1, 2022

You may have heard of the old financial planning adage that says as long as you withdraw no more than 4 percent of your portfolio’s balance each year, it has statistically a much better chance of surviving over a 30-year timespan. Some have said the withdrawal rate should be even lower than that —  maybe no more than 2 percent. But whether the amount is 4 percent, 2 percent, or some other number, the more important  issue is this: what is your withdrawal strategy? Will you potentially have to sell stocks when they’re down in value in order to meet your spending needs?  If so, you’re asking for trouble.