Automated trading is such a concept that may sound similar to a dream come true for a lot of people. There would certainly be no one who wouldn’t be exhilarated at the thought of such a computer system that is capable of entering and exiting trades automatically and have the potential to make greater profits with low inputs from the user. However, before you think of getting involved with automated trading there are certain things you should know. In the later part of this post, we are going to discuss some commonly asked questions regarding automated trading along with their answers.

How profitable is Automated trading?

Automated trading doesn’t always ensure 100% profits, but they give assurance that the user will get all the advantages from the movements occurring in the market. Automated trading functions in a very coherent and articulate manner.

Can automated trading lead to scams? 

The concept of applying software to trade in the market as a representative of you can sound too easy and good, but people generally end up thinking whether it is a scam. You should know that few federal governments have given their consideration to automated trading as scams.

Which is the best-automated trading system? 

Several automated trading systems are provided free of cost with highly appealing service assurance. Although not all of these programs end up being failures. The drawback is that a lot of these systems are related to scams. Furthermore, the topmost automated trading system can be acquired with the best security with the proper checking and setting of parameters for privacy.

Is it compulsory to hire an automated trading broker? 

Finding an automated trading broker is very important if you are completely new to this field. Although there are certain risks involved in the process once you end up choosing the right broker, they can ease things for you.

Search the website forexrobotexpert.com to get more information on automated trading and everything related. Apart from that, all the generally asked questions along with the basic concept of automated trading have been answered in this post above.

If youThose that have worked hard and saved for your retirement,retirement you deserve to enjoy your retirement their your golden years without having to worry about outliving whether their your savings. will last through your golden years. With the growing inflation, high life expectancy and low yield on stocks, you need to deploying strategies and tactics that will produce constant growth and hedge against market risks are critical in retirement. 

Here are five smart tactics rules of thumb to help protect your investments and income in retirement with the help of Conservative Investing Mobile Apps:

Buy long-term care insurance

Advances in medicine and patient care are making it easier for people to live longer, but as lifespan increases so too is the cost of health care, especially the cost of long-term care. One study found that an average couple retiring in 20187 will need more than $270, 000 to cover the cost of health care in retirement — whichthis does not include the cost of long-term care (and people with longer lifespans should expect to spend more).

The U.S. Department of Health and Human Services estimates that 70% of people aged 65 and above will need some form of Long-term care in retirement. A survey conducted by Genworth in 2017 found that average home health care services cost about $130 per day and assisted living facilities can cost upwards of $40,000 per year.

To mitigate the risks of high long-term care costs you should consider buying long-term care insurance (LTC). Since most insurers based the cost of premiums on age, it’s advisable to enroll in athe health insurance program when you’re younger — whichthat will help reduce the cost of your premiums. Another way to reduce health care costs is to make use of a health savings account (HSA) if your employer offers oneit. An HSA allows you to save pretax dollars, which you can withdraw tax-free if you’re in retirement or if you plan to useuse it for qualifyied medical expenses.

Restructure your investment

Most experts agree that investing in high yield, risky securities is dangerous, but so too is investing conservatively or holding your money in cash. High yield securities can produce strong returns in bull markets but can hurt your portfolio if the market crashes. On the other hand, conservative securities such as bonds can offer fixed-income returns and favorable tax treatment, but with an all-time low yield on bonds, putting too much money into bond markets can have a devastating effect on your portfolio if inflation were too skyrocketed. 

The answer to protecting your investments against market volatility and high inflation lie in rebalancing your portfolio to better reflect your risk tolerance and what you hope to achieve with your investments. With retirement that may last two decades or longer, you need to invest in securities that offer significant growth potential and yield opportunities.

Plan for longevity

With the growing lifespans and a health-conscious society, a 60-year old today can expect to live to 80 or 90. So it’s important to you need to plan build a for savings that will last for at least 20 or 30 years in retirement. You can easily outlive your savings if you don’t take longevity into account and you will have to relying on family or social security for sustenance can be a risky proposition at best. With the current social security benefit at a little over $1,300 a month, it can be very hard to get by with social security alone. To avoid running out of money in your golden years due to high life expectancy you should consider buying an annuity. An annuity can help you cover some of the costs that may arise as a result of longevity. Some Annuities also offer guaranteed income for life, which provides is an additional peace of mind if something goes wrong.

Tackle inflation

Inflation can significantly reduce your ability to pay for future goods and services if you don’t deal with itaccount for it properly. An annual inflation rate of just 1% can severely reduce your purchasing power if your investments yield lower returns. By investing in the right mix of stocks, bonds and inflation-protected securities, you can mitigate the risks of inflation. If you’re willing to put in the time and effort to monitor your investments, you should be able to contain the impact of inflation while growing your income.

Employ the bucket strategy

The bucket strategy, if structured properly, can help reduce longevity and financial market risks. The strategy entails allocating assets between risky buckets for high returns and safe buckets for liquidity and safety needs.

To make the most of your bucket strategy you need to set it up sooner rather than later. The first buckets should contain assets for your immediate cash-flow needs, say one or two yearsyear’s expenditures. Since this bucket will provide for your immediate cash requirements, it should be invested in low-risk securities where you can gain quick access to your money with little or no chance of depreciation.

The second bucket usually contains assets for long-term living costs, typically 3 to 10 years. The assets should be invested in high quality, low-risk securities such as bonds to meet your annual spending needs. This helps protect your portfolio against downturns and provide you with stable income over the course of 10 years. Note that this strategy works best when bonds are held to maturity.

The third bucket should contain assets for your long-term needs or legacy funds. This should be invested in 100% equities for a long period of time. The purpose of this bucket is to generate high returns — but that doesn’t mean you should invest recklessly, rather it’s an opportunity to spread your funds to a diverse mix of asset classes that are safe and high yielding. Keeping costs low while investing in asset classes that offer high returns is a recipe for success when investing for long-term goals. Employing the bucket strategy is a great way to increase your retirement portfolio and to ensure you don’t run out money in your golden years.Employ the four percent rule bucket strategys

The bucket approach is an effective way to mitigate sequence and longevity risk. The general idea is to set up three or more distribution “buckets,” with different asset classes and different time horizons for liquidation. These should be in place well before retirement, when an investor is more detached from distribution issues. The first bucket is all the cash needed to live for the next one to two years. It should include monthly expenses as well as a cushion for unexpected events. If a bear market hits at the beginning of withdrawals, the investor usually will be more comfortable using the cash distribution bucket and sleep better on the expectation that the bear market will not lead to ill-advised investment liquidations.

The second bucket should cover the costs of living years three through 10. Ideally this money would be invested in high-quality, individual bonds customized to match your annual expense needs. This bond strategy helps protect an eight-year time horizon; your portfolio will be able to generate the income that you need even if there’s a market collapse. The premise of this strategy is that the bonds are held to maturity.

The third bucket, which covers years 11 and on, should be invested 100% in equities for long-term growth and possible legacy assets for heirs. This doesn’t mean making predictions (bets), trying to pick companies or managers or trying to time the market, but rather getting broad exposure to the global marketplace at a very low cost. A recommended approach is to own 10,000-12,000 companies across the globe and across various asset classes. Harnessing the returns of capitalism in tax-efficient funds while keeping costs low and staying disciplined is a recipe for investment success. An investment time horizon exceeding 10 years is a good amount of time for a well-diversified equity approach to generate a respectable return, and the idea is to harvest gains from this bucket over time and to extend the income portfolio’s time horizon with the proceeds.

Were here to help Withdrawing from your savings without a well-thought-out plan can easily deplete your nest egg(s). You should only withdraw for your essential expenses and keep discretionary spending at a minimal level. To be on the safer side and to avoid withdrawing too much money from your savings at a time, you should employ the 4 or 5 percent rules — these rules have been around for a while. If you withdraw 4 or 5 percent of your savings annually, your nest egg(s) should be able to last for 20 years or longer before you run out of money. 

Though some experts have warned that due to low yield and average returns on equity, 4 and 5 percent withdrawal rates are no longer sustainable. Many experts have suggested that 2 or 3 percent withdrawal rates are safer and more sustainable over the long term. Whatever you do you shouldn’t draw from your savings recklessly; you need to have a sustainable withdrawal plan if you are going to enjoy your retirement without the risk of running out of money.

Protecting your investments and ensuring that you do not outlive your savings is critical, and getting a second opinion from a fiduciary advisor can positively impact your portfolio for years to come. Feel free to reach out to us for a no pressure complimentary consultation so that we can assess your needs – or consider registering to attend for an upcoming retirement seminar.