Although dividends provided a significant portion of investment returns in the past decades because of bull market conditions, dividend investing has not been lucrative lately, writes an expert on Forbes. However, this is the time to consider investing in securities with high dividend potential, writes the expert. "I think that when the current bull market fever subsides (or crashes), dividend investing will regain some of its lost sex appeal, especially to those who now want to live off their portfolio returns."
Clients in their 50s and 60s who are behind their retirement savings goals should boost their contributions to tax-advantaged plans, according to this article on Nasdaq. They should also reduce their spending and consider working longer to keep track with their savings targets. Older workers who lag behind their retirement goals should deposit their wage increase, tax refund and other windfalls into their retirement accounts and look for ways to reduce the investment fees in these accounts.
Recent market downturns resulted in a decline in stock ownerships, but retirement savers will still be better off invested in the stock market, according to this article on Motley Fool. Stocks are good investment options for long-term investing, as their money compounds over time. Data show that the stock market provides an average return of 7%, which can help offset the impact of inflation.
Seniors can cope with the rising healthcare costs in retirement by signing up for Medicare and buying supplemental insurance, such as Medigap and Medicare Advantage plan, according to this article on CBS Moneywatch. They can also contribute to a health savings account, which works like a super-IRA. HSA contributions are tax deductible, savings compound tax-free, and withdrawals are not subject to taxes if used for qualified medical expenses.
Seniors who want to reinvest themselves after retirement may want to relocate overseas, according to this article on MarketWatch. Reinventing oneself is easier when they are abroad, as it will allow them to reevaluate their circumstances and give them a new perspective. Starting fresh relationships with new people can also be liberating for expats as they start to live a new life.
