6/20/2015 – A retirement plan from the guy who teaches retirement income planning (Investment News)

Jun 20, 2015 Comments Off by

Matching increasing longevity with increased savings is among the biggest challenges facing retirement savers. It’s not an abstract one for Mr. Littell, whose father retired at 75 and is 103. His father has managed his own finances well and, when he started spending down assets at 84, bought an annuity with some of his money. “It let him sleep better at night,” Mr. Littell said. Mr. Littell’s doing well on the savings side. He earns a salary in the low six-figures and has saved throughout his career, putting 10%, on average, into a defined contribution plan.

He said he’s an example of how the defined contribution environment — that’s 401(k) territory, an environment without defined benefit plans, the traditional pension — can work “as long as you contribute, roll the money into an IRA when you change jobs, and invest for the long haul.” A $20,000 rollover made years ago has more than quadrupled and is his biggest retirement asset. Most of the money is in a variety of low-cost stock mutual funds. He also has a small defined benefit plan, which was frozen.

Read the full article in Investment News.

Financial Landing 2015

About the author

The author didnt add any Information to his profile yet