Retirement without fear! You can make your money last your lifetime.
You may be suffering from doubts about your financial future. And no wonder. The popular media LOVE to create fear—after all, isn’t fear the best way to sell more financial products and services?
So, the popular media bombard you with negative messages: Americans don’t save enough! Forget Social Security! Plan on suffering when you give up your regular paycheck!
ENOUGH! Consumer Reports Money Adviser takes a different approach...we take a positive approach: We suggest that you take small, simple steps now to make your money last a lifetime. Take bonds, for example. Many people look to bonds for fixed income when they retire. But here’s something about bonds that might surprise you…
Laddering, you may recall, is an investment technique in which you purchase a series of bonds of varying maturities, such as one to five years.
That way you avoid locking in all your money when rates are low, and you always have bonds coming due and cash to reinvest as rates rise.
But, laddering can complicate your life. And, individual bonds are riskier than mutual funds. A ladder with a future Enron as one of its steps is going to be a rickety proposition.
Here’s a better, easier approach: Focus on intermediate-term bond funds instead. Long-term bonds pay more, but not enough to make up for the greater risk. Consider bond funds from fee-frugal Vanguard Group. Check Money Adviser for more valuable advice you can use to increase your wealth. Send for the current issue of Money Adviser today.
