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Due to inflation or portfolio losses, some are finding retirement savings inadequate 2010-01-13 Often, the Motley Fool investing website says, people don't take inflation into account in their retirement savings projections, leading to disastrous consequences down the road. Investing for decades is the best way to combat inflation, the Motley Fool suggests. Picking smart investments in a retirement portfolio is just as important. Many older people may find that they did not set aside enough for retirement during their working lives; others who did save dutifully could have seen savings wiped out late in 2008 when the stock market took a tumble. Older workers can play catch-up under a special 401(k) provision that permits contributions over the annual limit for workers older than 50, but even that may be insufficient. An increasing number of people are looking to life settlements as a way to increase liquidity later in life. Under a life settlement, an investor buys a person's life insurance policy and maintains it by continuing to pay the premiums. Investors pay more than the surrender value for the policy but less than the face value; they're betting that they can make money on the arrangement by getting a payout from insurance companies. Life settlements are growing in popularity. The Life Settlement Industry Association estimates that the number of settlements written has grown fourfold since 2003.  |
