Sixty-five, a birthday many of us look forward to, became the full retirement age all the way back in the 1930s. By 1940, those who turned 65 could expect to live another 12.7 or 14.7 years (males and females, respectively). By the 90s, those averages had increased to 15.3 to 19.6, but the retirement age hadn’t changed. Since many of us today can expect to live 30 or even 40 years after retirement, we need quite a nest egg!
If you are approaching retirement age and are less prepared than you would like to be, you may need to delay retirement. But no matter your age, there are things you can do now to make sure you can retire comfortably. Here are four tips I’ve found that can help anyone make better investment decisions for a better retirement:
Don’t politicize your portfolio
When we’re afraid, we tend to do the wrong thing, and that’s especially true of money matters. In my 50 years in finance, I’ve seen this over and over again through the political cycle. People are afraid the stock market will crash if a certain candidate is elected, so they make rash financial decisions that end up hurting them.
My advice: Do not politicize your portfolio. Whether a Republican or Democrat is in office, it doesn’t make as much of a difference to your investment portfolio as you think. In fact, when you look at the S&P 500 over the past 100 years, the sitting president has not made that much of a difference in how the stock market performed during his term.
No matter what is happening in politics, you should choose an investment strategy and consider sticking to it through all political changes. While the stock market does ebb and flow, things are rarely as bad as people think they will be.
Start in your 20s
When you’re in your 20s, retirement seems a whole world away. But the reality is that the quality of your retirement can be determined in your 20s. And if you’re not putting enough away and investing for growth, you probably won’t have enough money by the time you are ready to retire.
Let’s say you’re 25 and you want to be a millionaire 40 years from now. If you invest $5,000 a year and earn a reasonable amount of interest – we’ll say 7% – you will reach your goal with approximately $1,000,000 in your account. (This is a hypothetical example for illustrative purposes only. Actual results will vary. No specific investments were used in this example, and it does not take into account deduction of fees or taxes.)
But if you wait until you’re 35, you will have to invest $10,000 a year to get the same results. And if you wait until you’re 45, you’ll have to invest $20,000 each year. But if you don’t invest anything until 55, it becomes impossible to earn enough interest by the time you’re 65. If you invested $40,000 each year, you would have to earn in excess of 12 percent interest, which just won’t happen.
Try out Nerd Wallet’s Compound Interest Calculator to run other scenarios and see how much you’ll need to put away each year to be ready for retirement.
Invest, don’t speculate
It’s important to find the balance between investing too aggressively and not aggressively enough. If you’re too aggressive, that can turn into speculating rather than investing. Speculating is akin to gambling, and I’ve seen many well-meaning young Utahns fall into this trap.
On the other hand, if you’re not investing aggressively enough or not investing at all, you could outlive your money. Refraining from investing feels like you’re avoiding risk, but taking the chance that you could outlive your money is also risky!
Wise investing is based on weighing risk and return. There are lots of tools to invest for both growth and safety, such as simple diversification, which is designed to protect you with sheer numbers. When your investment portfolio is managed properly, there is less risk of losing your money.
Don’t overwatch your portfolio
When people first start investing, there’s a tendency to watch their portfolio closely, checking in daily to see how it’s doing. They a-re then tempted to sell as soon as they see a peak in price, which often ends up being a mistake.
As the saying goes, time in the markets is better than timing the markets, and research backs this up. A study by Charles Schwab Company found that “between 1926 and 2011, a 20-year holding period never produced a negative result.”
In another study, Charles Schwab Company found that “The best action that a long-term investor can take … is to determine how much exposure to the stock market is appropriate for your goals and risk tolerance and then consider investing as soon as possible, regardless of the current level of the stock market.”
People that participate in 401(k) plans are typically successful if they pick investments that fit their needs and goals and then leave them alone. They often end up with a better income after they retire than before!
In summary, don’t politicize your portfolio, start investing young, don’t speculate and avoid constantly looking at your portfolio. No matter how long you have until retirement, you can make changes today that will help get you in a better financial position. If you would like personalized advice, reach out to Merrill Financial Associates to get started creating a strategy that fits your needs and goals.
This article is intended for informational/educational purposes only and should not be construed as investment advice, a solicitation, or recommendation to buy or sell any investment product. Merrill Financial Associates is located at 3549 North University Avenue, Suite 175, Provo, UT 84604 and can be reached at 801.356.7100. Advisory services offered through Commonwealth Financial Network®, a Registered Investment Adviser.
Doug Ford promises ‘huge’ investment in Windsor, Ont., auto plant after shift cuts – Global News
TECUMSEH, Ont. — Ontario Premier Doug Ford says the province and federal governments will be making a “huge” investment in a Windsor, Ont., auto assembly plant to help ramp up production after the company announced a shift cut.
Stellantis, formerly known as Fiat Chrysler Automobiles, announced last week that it will cut its Windsor Assembly Plant down to one shift next spring in a move that will mean about 1,800 lost jobs.
The company says the move comes as the automotive industry faces significant headwinds including the semiconductor shortage and the effects of COVID-19.
The cut from two shifts comes after Stellantis cut the third shift at the minivan plant in 2020 at a loss of about 1,500 jobs.
Ford, speaking near Windsor on Monday, says he wants to see three shifts again at the plant, and he will be speaking with Stellantis leadership on Tuesday.
The premier was not able to offer details on the investment, but said between both levels of government it’s “hundreds of millions” of dollars.
Stellantis has reaffirmed its commitment in a 2020 collective agreement with the local Unifor union to spend upwards of $1.5 billion at the plant.
The Windsor plant produces the Chrysler Pacifica, Chrysler Voyager and Chrysler Grand Caravan.
Ford also spoke of his interest in having a battery facility in Windsor.
“We have all the natural resources, we have the lithium, we have the nickel, we have the cobalt, folks, everything is here,” he said.
“We don’t need to bring these batteries in from overseas. We have everything here. On top of that we have the best workforce anywhere in the world … Any people out there that are listening that want to expand in Ontario, especially the battery business, we’ll be at your front doorstep and we’ll be ready to make a deal with you.”
© 2021 The Canadian Press
Boris Johnson Says UK Doesn't Want to Turn Away Chinese Investment – BNN
(Bloomberg) — Prime Minister Boris Johnson said he is not about to “pitchfork away” offers of Chinese investment despite the concerns of some of his own lawmakers.
Decisions to bar Chinese companies from Britain’s fifth-generation communication networks and nuclear power, and condemnation of China’s human-rights record have soured relations with Beijing over the last few years, but Johnson maintains he is pro-China.
“I am no Sinophobe — very far from it,” Johnson said in an interview with Bloomberg Editor-in-Chief John Micklethwait on Monday. “I’m not going to tell you that the U.K. government is going to pitchfork away every overture from China.”
Read More: Johnson Hosts Business Leaders’ Dinner Amid U.K. Investment Push
Johnson was speaking ahead of an investment conference in London on Tuesday designed to boost investment into the U.K. and just a fortnight before he hosts the Cop-26 climate summit in Scotland. With Chinese President Xi Jinping likely to be absent from the summit, concerns are growing China may refuse to set new climate change goals and deprive Johnson of a clear win on tackling global warming.
U.K. imports from China amounted to 67.6 billion pounds ($92.8 billion) in the year through June, according to U.K. statistics, a rise of nearly 40% from the previous year. That makes China the U.K.’s third largest trading partner.
“China is a gigantic part of our economic life and will be for a long time — for our lifetimes,” Johnson said. “But that does not mean that we should be naive in the way that we look at our critical national infrastructure.”
The government has said that Chinese firms are welcome to invest in non-strategic parts of the economy but Johnson refused to spell out exactly where he would draw the line. “You’d have to look at what you’re defining as strategic,” he said.
As part of the investment conference, Huaneng will invest in a 50-megawatt battery project.
The U.K. has already introduced legislation making it harder for foreign investors to take significant stakes in critical national infrastructure.
Read More: China Blasts ‘Despicable’ U.K. Move to Ban Envoy From Parliament
Last month, China’s ambassador to London, Zheng Zeguang, was prevented from participating in a meeting in the U.K. Parliament in a case that crystallized the conflicting attitudes among Tory MPs.
Zheng had been asked to attend by Conservative member Richard Graham, who chairs a group of lawmakers seeking to foster good relations with China. But the invitation drew outrage from others who have been sanctioned by Beijing for speaking out over alleged human rights abuses and the invitation was canceled by Parliamentary Speaker Lindsay Hoyle.
Beijing has repeatedly denied any mistreatment of its Muslim Uyghur minority and insists crackdowns in Hong Kong are to prevent insurrection.
Johnson insisted that the relationship can prosper “in spite of all the difficult conversations about the Dalai Lama or Hong Kong or the Uyghurs.”
“Actually trade with China has continued to expand for a very long time and I think probably will continue to expand for the rest of our lives,” he said.
©2021 Bloomberg L.P.
Morrisons investors set to rubber stamp $10 billion CD&R takeover
Shareholders in supermarket group Morrisons are expected on Tuesday to approve a 7 billion pound ($9.6 billion) offer by U.S. private equity firm Clayton, Dubilier & Rice (CD&R), bringing the curtain down on Britain’s most fiercely contested takeover this year.
CD&R, which has former Tesco boss Terry Leahy as a senior adviser, won an auction for Morrisons on Oct. 2, bidding a penny a share more than a consortium led by Softbank owned Fortress Investment Group.
Investor approval for the deal will conclude a six-month battle to buy Morrisons, Britain’s fourth-biggest grocer and one of the country’s biggest food producers.
It will end Morrisons’ 54-year run as a publicly listed company and see the ultimate decisions on the group’s future shift from its Bradford, northern England, base to the New York home of CD&R.
Morrisons, which started out as an egg and butter merchant in 1899, trails market leader Tesco, Sainsbury’s and Asda in annual revenue.
The battle for Morrisons has been the most high-profile amid a raft of bids for British companies this year, reflecting private equity’s appetite for cash-generating UK assets.
With the winning bid representing a hefty 61% premium on Morrisons’ share price before takeover interest publicly emerged in mid-June, analysts expect little or no dissent.
To go through CD&R’s offer needs the support of shareholders representing at least 75% in value of voting investors at the meeting, which is being held both physically and virtually.
CD&R has committed to retaining Morrisons’ Bradford headquarters and its existing management team, led by CEO David Potts.
It has also said it will execute the supermarket chain’s existing strategy, not sell its freehold store estate and maintain staff pay rates.
These commitments are not legally binding, however.
If, as expected, shareholders approve the offer, CD&R could complete its takeover by the end of the month, making Morrisons the second UK supermarket chain in a year to be acquired by private equity after a buyout of No. 3 player Asda, by the Issa brothers and TDR Capital, completed in February.
($1 = 0.7284 pounds)
(Reporting by James Davey; Editing by Susan Fenton)
Oil prices fall as weaker China growth, U.S. output stoke demand concerns
Ecuadorean indigenous communities sue to halt oil development
Doug Ford promises ‘huge’ investment in Windsor, Ont., auto plant after shift cuts – Global News
Silver investment demand jumped 12% in 2019
Europe kicks off vaccination programs | All media content | DW | 27.12.2020 – Deutsche Welle
Iran anticipates renewed protests amid social media shutdown
Investment10 hours ago
New York directs two cryptocurrency lending platforms to cease activity
Investment22 hours ago
Bitcoin hovers near 6-month high on ETF hopes, inflation worries
Investment14 hours ago
Crypto investment in mutual funds style: Mudrex launches 'coin sets' – Economic Times
Economy23 hours ago
Oil prices climb to highest in years as COVID recovery, power generators stoke demand
News22 hours ago
China’s plunging construction starts reminiscent of 2015 downturn
Economy16 hours ago
China economy slows; officials say recovery ‘unstable and uneven’ – Al Jazeera English
Health10 hours ago
Oyster Point’s drug becomes first FDA-approved nasal spray to treat dry eyes
Business23 hours ago
Goldman Sachs moves to full ownership of China securities JV