Retirement is a milestone that many people look forward to after years of hard work. However, with the shifting economic landscape, it is important to stay up-to-date on current retirement trends and options for investing your money. In this article, Bill Schantz will discuss some of the latest retirement trends and provide insights into the best options for investing your retirement savings.
Bill Schantz Lists Retirement Trends and Options for Investing Your Money
Trends in Retirement
One major trend in retirement is that people are working longer, says Bill Schantz. In 2019, nearly 20% of Americans aged 65 or older were still working, compared to just 10% in 1985. This trend is expected to continue in the coming years due to several factors, including increased lifespans, the need for more retirement savings, and better health.
Another trend is the shift from pensions to 401(k) plans. Pensions have become less common in recent years, with just 17% of private sector workers having access to a traditional pension plan in 2018. Instead, many companies offer 401(k) plans, which allow employees to contribute a portion of their income and receive employer contributions. This shift places more responsibility on individuals to save for retirement, but it also provides more flexibility in investment options.
Options for Investing Your Retirement Savings
One popular option for investing your retirement savings is through a target-date fund. These funds automatically rebalance investments based on the investor’s expected retirement date, becoming more conservative as the date approaches. Target-date funds are often a good choice for those who want a hands-off approach to investing and are comfortable with taking on some risk.
Another option is an annuity, which provides a guaranteed income stream for life. An annuity can be purchased from an insurance company and can come in many different forms, such as fixed or variable. An annuity can be a good option for those who want a steady stream of income without the worry of market fluctuations.
Investors who are comfortable with taking on more risk may consider investing in individual stocks, bonds, or mutual funds. These options require more research and involvement but may result in higher returns.
Finally, it is important, as per Bill Schantz, to make sure your retirement savings are properly diversified. Diversification can spread out risk and potentially increase returns. This can be achieved through a mix of stocks, bonds, and other investments, such as real estate or commodities.
Bill Schantz’s Concluding Thoughts
Retirement trends and options for investing your money are constantly evolving. It is important, as per Bill Schantz, to stay current and informed on these trends to make the best decisions for your retirement savings. Whether you choose a hands-off approach with target-date funds or take a more active role in investing, the most important thing is to start saving now and to make sure your investments are properly diversified. By doing so, you can help ensure a comfortable and financially stable retirement.