Five Steps for Increasing Retirement Income

Fidelity Investments modeled five steps that investors of all ages can use to increase their retirement income. The steps have varying impacts individually, but when combined, they have the potential to significantly increase retirement income.

The steps are:

1. Adjust Asset Allocation—A Fidelity survey of 2,800 investors found that most followed a portfolio allocation strategy that was more conservative than their age would dictate is appropriate. Investors born after 1964 (Generation X and Generation Y) stand to reap the biggest benefits from a more aggressive allocation because of their long investing time horizons.

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Discussion

Stephen from Florida posted about 1 year ago:

Fidelity has a vested interest in telling you to put more money into your 401k, and to buy an annuity. You should provide studies by independent firms that have no conflict of interest. Fidelity sells products.


Stephen from Florida posted about 1 year ago:

Fidelity has a vested interest in telling you to put more money into your 401k, and to buy an annuity. You should provide studies by independent firms that have no conflict of interest. Fidelity sells products.


Joseph from New York posted about 1 year ago:

I made a BIG mistake back in '08 when I purchased a variable annuity, and here it is four years later and I'm still down several thousand dollars from my initial investment.
At this time my surrender fee is gone and with any hope of a market recovery, I will get rid of this soon.


Sharon from Arizona posted about 1 year ago:

Cashed out of a life insurance policy into a variable annuity in '98. Today the value of the variable annuity is barely 1% over the original value. Just a very disappointing investment and probably would have been better to leave invested in a life insurance product.


Daniel Wright from Oklahoma posted 8 months ago:

poor advice as stated above and from independent advisors


Michael Henry from Oregon posted 8 months ago:

There is a BIG difference between a variable annuity and a fixed annuity. In retirement, variability is your enemy. In terms of preventing portfolio failure (i.e. the Alpo diet) a variable annuity is a financial oxymoron. Think of a fixed annuity as a substitute for cash as a portfolio component designed to reduce variability.


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