Wall Street opened higher as financial stocks rose and euro zone central bank sources said market had overinterpreted Draghi's comments.Read More »
United Parcel Service (NYSE:UPS) is the latest company to freeze employee pension plans, according to a report published Tuesday. A growing list of American corporations are freezing pension benefits or transitioning to 401(k) retirement plans. By November 2016, 38 companies in the Fortune 100 rankings had frozen their defined benefit plans, according to Willis Towers Watson.
If you’re like many adults, the thought of taking an early retirement (could you retire at 45?) has probably crossed your mind at least once or twice. The “four percent rule” – a widely accepted financial rule of thumb – states that your savings should last through 30 years of retirement if you withdraw 4% of your nest egg during the first year of retirement and then adjust each year thereafter for inflation. If you have $500,000, the math comes out to $20,000 a year, assuming a 4% withdrawal strategy.
Current low interest rates have created an environment where the old ideology about mortgages no longer applies. In the past, our financial goals included homeownership free and clear of mortgage debt. We have entered an era where we now suggest you refinance and maintain a mortgage for the rest of your life, or at least to a 30-year mortgage term. I think we all can agree that low mortgage interest rates benefit the homeowners that own a mortgage and qualify for these low rates. Before you start thinking we have lost our minds and there is no way you will attempt to maintain a long-term mortgage, let’s take a look at some of the benefits of holding a mortgage. What was once conveniently saved monthly for you by your bank or lending company is now your responsibility.