Latest news with #retirementfund
Bloomberg
a day ago
- Business
- Bloomberg
Japan Pension Shuns Bonds With 57% of Fund in Alternative Assets
Japan's once conservative pension funds are putting more of their cash in alternative assets to push up returns. One corporate money manager has taken that to a whole new level. Daiwa House Industry Co. 's retirement fund has parked a whopping 57% of the company's holdings in alternative assets such as private equity and debt, as well as hedge funds as of the end of March.
RNZ News
5 days ago
- Business
- RNZ News
KiwiSaver hardship withdrawals applications doubled
One of the organisations vetting KiwiSaver hardship withdrawals has said applications to dip into the retirement fund have more than doubled in the past two years. This comes as some fund managers have expressed concern about social media "how to guides" advising people to go into more debt or fudge their financials so they can crack open the retirement piggy bank early. Inland revenue figures show that in April 2025 hardship withdrawals were up $300 million on the year before. Public Trusts acts as a supervisor for various KiwiSaver schemes and decides which hardship withdrawals are signed off. General Manager of Corporate Trustee Services David Callanan spoke to Lisa Owen. To embed this content on your own webpage, cut and paste the following: See terms of use.
Bloomberg
13-06-2025
- Business
- Bloomberg
The Florida Pension Fund Managers Who've Beaten the S&P 500 Over 50 Years
Unlike most other US public retirement plans of its size, the Tampa Fire & Police Pension Fund doesn't invest in hedge funds, private equity or private credit. It doesn't hire consultants to help it pick outside managers. Instead, for the past 50 years, its investments in stocks and bonds have been overseen by a single manager, Bowen, Hanes & Co., a nine-person firm led by Harold 'Jay' Bowen III. In short, Tampa and Bowen Hanes do one thing, and the rest of the institutional world does something else. Consider the Tampa fund's performance, though. It racked up a 32.2% return in the fiscal year ended in September. 'Fiscal 2024 was—not only was it our 50th year, it was the best year the plan's ever had,' says Bowen, 63. The return was good enough to rank the Tampa plan as the best performer for the period in the Wilshire Trust Universe Comparison Service's database of plans with more than $1 billion in assets under management. Tampa was also No. 1 for 3, 5, 10, 15, 20, 25, 30, 35 and 40 years.
Yahoo
18-05-2025
- Business
- Yahoo
If Social Security Runs Out, How Long Will $2 Million Last in the Midwest?
Does your retirement fund have $2 million in savings? If you answered yes to that question, this amount of money would be able to pay for a minimum of 33 years of retirement in every state classified as part of the Midwest. Be Aware: Find Out: This information was pulled from a new GOBankingRates study analyzing how long $2 million in retirement savings could last in every U.S. state. A full methodology is available at the end of this article. Even if Social Security runs out, $2 million is enough to fund a lengthy Midwest retirement. Annual expenditures: $57,383 Years $2 million will last: 34.9 National average: 33.3 years Read More: Trending Now: Annual expenditures: $54,859 Years $2 million will last: 36.5 National average: 33.3 years Learn More: Annual expenditures: $54,319 Years $2 million will last: 36.8 National average: 33.3 years Annual expenditures: $52,095 Years $2 million will last: 38.4 National average: 33.3 years Annual expenditures: $55,460 Years $2 million will last: 36.1 National average: 33.3 years Check Out: Annual expenditures: $57,263 Years $2 million will last: 34.9 National average: 33.3 years Annual expenditures: $53,477 Years $2 million will last: 37.4 National average: 33.3 years Annual expenditures: $55,761 Years $2 million will last: 35.9 National average: 33.3 years That's Interesting: Annual expenditures: $55,340 Years $2 million will last: 36.1 National average: 33.3 years Annual expenditures: $57,023 Years $2 million will last: 35.1 National average: 33.3 years Annual expenditures: $55,460 Years $2 million will last: 36.1 National average: 33.3 years Discover More: Annual expenditures: $59,666 Years $2 million will last: 33.5 National average: 33.3 years Methodology: GOBankingRates found the national average annual expenditures for people 65 and older, sourced from the Bureau of Labor Statistics' 2023 Consumer Expenditure Survey data. Then, GOBankingRates created (2) state-level annual expenditure estimates by multiplying the national figure by each state's overall cost-of-living index score for 2024 from the Missouri Economic Research and Information Center. Finally, GOBankingRates found (3) how many years $2 million will last in each state by dividing $2 million by each state's average annual expenditures estimate and its annual expenditures estimate minus yearly Social Security income. All data was collected on and is up to date as of March 7, 2025. More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? How Much Money Is Needed To Be Considered Middle Class in Every State? 5 Little-Known Ways to Make Summer Travel More Affordable 4 Housing Markets That Have Plummeted in Value Over the Past 5 Years This article originally appeared on If Social Security Runs Out, How Long Will $2 Million Last in the Midwest? Sign in to access your portfolio
Yahoo
10-05-2025
- Business
- Yahoo
What $1 Million in Retirement Savings Looks Like in Monthly Spending
Building up a nest egg of $1 million in retirement savings might sound like a fortune, but it's within reach of many Americans who start saving and investing early in their careers. For example, if you invest 15% of a $60,000 salary into a retirement account for 30 years, earning an average of 8% in annual returns, you'd retire a millionaire. That said, $1 million doesn't go as far as it used to. While it can be a comfortable retirement, it still requires careful budgeting to make sure your money lasts the rest of your lifetime. Find Out: Learn More: 'Retiring with $1 million in savings is totally possible today, but it takes thoughtful planning,' said Amber Schiffert, co-founder of Tara Wealth. Here's what $1 million in retirement savings could look like on a monthly basis in retirement. There are a few ways to approach drawing down your retirement savings so you have enough to live comfortably. One strategy is the 4% rule, where you withdraw 4% of your portfolio each year, adjusting for inflation. With $1 million in retirement savings, 'using the 4% rule, that gives you about $40,000 a year to safely withdraw from your investments,' Schiffert said. That translates into about $3,333 per month, although taxes might reduce that amount, depending on your retirement accounts. Regardless, that amount alone may be enough for some retirees, such as those who have paid off their mortgage and car loans. Retiring with $1 million is possible, according to Chad Gammon, CFP, owner of Custom Fit Financial. 'I've seen people retire with even less than $1 million … They typically have very low living costs that are as low as $40,000 per year or lower. They might also work until age 65 or 70 to maximize their Social Security with benefits around $20,000 to $40,000 per year. They also typically do not have debt and enjoy the simple things in life,' Gammon said. However, not everyone can live on $3,333 per month. While other sources of income like Social Security might help, if you're trying to simply calculate what $1 million in retirement savings gets you, another option to consider is spending down your nest egg, rather than treading water with the 4% rule. For example, if you wanted to pull out $5,000 per month from your retirement savings and the balance still earned 4% per year after taxes, that would last you approximately 27 years (not factoring in inflation). That could be enough for many, although some might end up outliving this time frame. Dropping the withdrawal slightly to, say, $4,500 per month would make your savings last longer. 'To make sure this works for you, you'll also want to ensure your other sources of income such as Social Security, rental income and pensions combined with your investment withdrawals can support your lifestyle. And don't forget to account for rising healthcare costs and inflation. If overlooked, these two major factors can significantly impact your financial security and retirement portfolio,' Schiffert said. Read Next: Suppose you decide to draw down your retirement savings and took out $4,500 per month. That, combined with the average Social Security monthly benefit of nearly $2,000, would leave you with around $6,500 pretax. Post-tax amounts can vary significantly depending on your situation, but let's assume for simplicity in this scenario your blended federal and state tax rate is 15%, leaving you with about $5,525 per month. Using the 50/30/20 budget rule, that means 50%, or $2,762.50, could go toward your needs. That's much more feasible if you don't have monthly rent or a mortgage. Then, 30%, or $1,657.50, could go toward your wants, such as eating out and travel. Depending on your lifestyle, that 'wants' bucket could go quickly, but if you roll some over from month to month, it could be enough to take some significant trips in retirement. Lastly, 20%, or $1,105, could go toward savings. Since you're already pulling from retirement savings in the first place, this probably isn't going to be a long-term savings bucket. Instead, you might think of it as more of an unexpected expense category, like a doctor's bill that exceeds your needs budget or an unplanned home repair. As you can see, $1 million doesn't necessarily go all that far in retirement, but it's possible to still set yourself up for success, especially if you can supplement with other income sources, like Social Security, and plan your budget carefully. 'My top tip would be to delay Social Security as long as possible. Once you are past your full retirement age and wait one year, it is like getting an 8% raise. An example would be delaying from age 67 to 68. I ask clients how often they received a 8% raise at work and it is not common, and it resonates to wait,' Gammon said. And if you're not sure where your retirement savings stand or how to plan effectively, meeting with a financial advisor can help. 'It can also be a good idea to get low-cost financial help from hourly for flat fee advisors that can help create a dynamic withdrawal strategy to adjust on a yearly basis. You would spend less in a down market, and take out more after a good market year. The only thing I would note is that you have to be able to adjust your budget and that can be difficult for people,' Gammon said. More From GOBankingRates Mark Cuban: Trump's Tariffs Will Affect This Class of People the Most How Far $750K Plus Social Security Goes in Retirement in Every US Region How To Get the Most Value From Your Costco Membership in 2025 12 SUVs With the Most Reliable Engines Sources Amber Schiffert, Tara Wealth Chad Gammon, Custom Fit Financial This article originally appeared on What $1 Million in Retirement Savings Looks Like in Monthly Spending Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
