Weekly Market Recap This week saw continued strong jobs and manufacturing data in the US, with housing data coming in weaker than expected. Internationally, consumer confidence in the Eurozone improved in early November. Recent European Central Bank statements hinted at further stimulus targeted at improving Eurozone growth. Major stock markets in France, and globally, rose for the week, despite last weekend's tragic events.
One thing to consider, as you think about retirement planning, is that your investment time horizon for retirement may be longer than you realize. A lot of the focus is on your time until retirement (the period over which you can save), but given long life expectancy in retirement, your portfolio may continue to be invested long after you retire.
Once in retirement, retirees generally do not sell their investments overnight, but rather steadily draw down their savings incrementally and so a significant amount of funds may continue to be invested, often for at least a decade.
So don't assume that the number of years until you retire is the extent of your investment time horizon. It's possible that your money will be invested for significantly longer than that. Our portfolio allocations are intended to reflect this, but not everyone realizes how long their investment time horizon might be. For example, a man or woman retiring today at 65 can be expected to live for another 19 or 21 years respectively in retirement on average, according to Social Security analysis (see link below for the full life expectancy calculator).
So your time until retirement is only part of the story, and likely does not capture the full time horizon you have to invest.
Notes:
Life expectancy: https://www.ssa.gov/planners/lifeexpectancy.html
Markets data: http://www.wsj.com/mdc/public/page/mdc_international.html
US economic recap: http://mam.econoday.com/byshoweventarticle.asp?fid=472875&cust=mam&year=2015&lid=0#top
International economic recap: http://mam.econoday.com/byshoweventarticle.asp?fid=472874&cust=mam&year=2015&lid=0#top Disclaimer:
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