My husband and I will be retiring soon and are thinking of using the 4% rule to draw income from our retirement portfolio. We don’t want to run out of money, but we also don’t want to spend too little. Is there some sort of “reset” we should do periodically to ensure we don’t end up with too little or too much money later in retirement?–K.B.
You raise an important, but often overlooked, issue when it comes to the 4% rule, or for that matter any withdrawal system designed to turn savings into reliable retirement income — namely, that the goal isn’t just to make sure your nest egg lasts as long as you do, but also to avoid withdrawing so little to conserve assets that you live unnecessarily frugally in retirement.
But before I get to what you can do to strike a balance between withdrawing too much or too little, I want to quickly explain for the benefit of people who may not be familiar with the 4% rule, how it works and why, despite its name, you should think of this metric more as a general guideline than a hard-and-fast rule.
investment club: Tuesday Morning Corp.(TUES)
- [By Monica Gerson]
Tuesday Morning (NASDAQ: TUES) shares gained 4.87% to create a new 52-week high of $14.63. Tuesday Morning shares have jumped 110.09% over the past 52 weeks, while the S&P 500 index has gained 18.17% in the same period.
investment club: Virtusa Corporation(VRTU)
- [By Lisa Levin]
Technology shares gained around 0.85 percent in trading on Friday. Meanwhile, top gainers in the sector included Virtusa Corporation (NASDAQ: VRTU), and Ceragon Networks Ltd (NASDAQ: CRNT).
investment club: Nord Anglia Education, Inc.(NORD)
- [By Jim Robertson]
On Monday, our Under the Radar Moversnewsletter suggested going long on small cap international school stock Nord Anglia Education Inc (NYSE: NORD):
- [By Lisa Levin]
Nord Anglia Education Inc (NASDAQ: NORD) shares shot up 19 percent to $32.83 after the company agreed to be acquired for $32.50 per share in cash.
investment club: Nordstrom Inc.(JWN)
- [By Douglas A. McIntyre]
The mall was created by accident, in some ways. Downtown Bloomington, Minnesota, lost its two largest corporate residents in 1982, football’s Minnesota Vikings and baseball’s Minnesota Twins. Over 78 acres became available for development. After debates about what should happen to the land, local officials decided to give it to financiers who wanted to build America’s largest home for retailers. It opened in 1992, two years before Amazon.com Inc. (NASDAQ: AMZN) was founded. Early tenants included Macy’s Inc. (NYSE: M), the Sears division of Sears Holdings Corp. (NASDAQ: SHLD) and Nordstrom Inc. (NYSE: JWN). All three have been injured by the current downturn in traditional retail sales.
- [By Ben Levisohn]
Nordstrom (JWN) tumbled to the bottom of the S&P 500 today after getting downgraded at JPMorgan.
Nordstrom dropped 8.7% to $50.48 today, while the S&P 500 dipped 0.2% to 2,258.07.
JPMorgan’s Matthew Boss and team explain why they cut Nordstrom to Underweight from Neutral today:
Nordstroms top-line profile has moderated to low-to-mid single digits with mgmt citing tighter expense control as a near-term fix rather than long term model solution clarifying its mid-teens ROIC target as more an aspiration rather than near-term reality. Cutting FY18 EPS power to $3.00 (< Street at $3.27) based on flattish same-store sales the next two years (negative low-single digits Full-line offset by +LSD Rack) and modest SG&A deleverage (initial Manhattan pressure in FY17 building into FY18) partially offset by slight GPM expansion. With shares ofNordstrom up 57% the past 6 months (vs S&P 500 +13%), we downgrade to Underweight, lowering our price target to $48 based on 6.0x our 18 EBITDA (= 16.5x FY18 EPS).
Nordstrom’s market capitalization fell to $8.8 today from $9.6 billion yesterday. It reported net income of $600 million on sales of $14.4 billion in fiscal 2016.
Barron’s Johanna Bennett also panned Nordstrom today.
- [By Shanthi Rexaline]
Here are the number of stores at the end of the third quarter of 2016 compared to the number of stores in 2007:
J C Penney Company Inc (NYSE: JCP): 1,014 vs. 1,067. Kohl’s Corporation (NYSE: KSS): 1,155 vs. 929. Macy’s Inc (NYSE: M): 880 vs. 853. Nordstrom, Inc. (NYSE: JWN): 348 vs. 157. TJX Companies Inc (NYSE: TJX): 582 vs. 2,500. Wal-Mart Stores Inc (NYSE: WMT)*: 4,574 vs. 4,141.
Source: SEC Filings
- [By WWW.THESTREET.COM]
There seems to be no cure for the rise of e-commerce, Cramer admitted to viewers, as a vicious downgrade of Nordstrom (JWN) last week sent shares reeling by more than 9%.
- [By Jim Robertson]
Nordstrom’s (JWN) is one name we did well shorting back in May of this year, and although we made another attempt at shorting the stock for a minor loss from September to November, our net gain between the two ended up being about 16%. Not bad all things considered. However, we’re still convinced JWN is a stock that’s going to move substantially lower when it’s all said and done.
investment club: TD Ameritrade Holding Corporation(AMTD)
- [By Jayson Derrick]
Looking for a list of the most common stocks sold by retail investors? Well, TD Ameritrade Holding Corp, (NASDAQ: AMTD) recently ranked as the top retail broker, releases on a monthly basis a few interesting tidbits that gauge the trading activity of its clients.
- [By Chris Dier-Scalise]
After a slight pullback in April following a series of all-time highs, TD Ameritrade Holding Corp. (NASDAQ: AMTD)’s monthly summary of its Investor Movement Index showed its customers regained much of their former bullishness in May.
- [By WWW.MONEYSHOW.COM]
TD Ameritrade (AMTD) is very strong today for one reason — it’s a bull market stock — that directly benefits from a rising stock market, explains growth stock expert Mike Cintolo, editor of Cabot Top Ten Trader.
- [By Chris Dier-Scalise]
That's the goal of TD Ameritrade Holding Corp.'s (NASDAQ: AMTD) Investor Movement Index, or IMX. The index tracks the activity of TD Ameritrade investors to measures how they are positioned in the markets.
- [By The Ticker Tape]
Short-term options traders have priced in a potential share price move of 2.5% in either direction around the earnings release, according to the Market Maker Move™ indicator on the thinkorswim® platform from TD Ameritrade Holding Corp. (NASDAQ: AMTD).