What Do Low Interest Rates Mean for Stock Returns?

By Bob French, CFA

Interest rates are one of the key tools that the Federal Reserve has to manage the economy. Changing how much it costs to borrow money can slow down an economy or give a the economy a nudge.

2020 – Q3 Quarterly Market Review

By Retirement Researcher

2020- Q2 Quarterly Market Review

A Tax on Giving – Understanding the Rules of the Gift Tax

By Rob Cordeau, CFP®, ChFC®, RICP®

Getting taxed once is hard enough, but getting hit a second time on the same dollars? That’s enough to give even a compliant taxpayer the urge to toss crates of tea into Boston Harbor. Whether double taxation like the gift tax is morally right…

I have taken the Retirement Income Style Awareness™ Profile. Is it helpful to use this with a financial professional?

By Alex Murguia, PhD

Here, we address whether or not you feel it would be helpful to share your personal RISA™ results with a financial professional.

I’ve taken the Retirement Income Style Awareness™ Profile. What’s next?

By Alex Murguia, PhD

We were able to categorize next steps after the RISA™ into five groups.

Retirement Income Style Awareness Profile (RISA™) and Its Accuracy

By Alex Murguia, PhD

We asked RISA™ participants if they felt the results were accurate; did the RISA™ “capture the essence of their style?”

Retirement Income Style Awareness Profile (RISA™) and Your First Reactions

By Alex Murguia, PhD

In the spirit of transparency, we are continuing to refine a scale to determine your retirement income style. I thought it would be a good idea to share with all of you some of the feedback we have received from the RISA™’s release in early 2020.

2020 – Q2 Quarterly Market Review

By Retirement Researcher

2020- Q2 Quarterly Market Review

Is Buying an Annuity in a Zero Interest Rate Environment a Good Idea?

By Wade Pfau, Ph.D., CFA

The Federal Reserve’s decision to cut its benchmark federal funds rate from 1% to a range of 0% raises significant questions for those reassessing their retirement nest egg—a common occurrence following a dramatic selloff in equities according to research conducted by Indiana University’s Alessandro Previtero —and the value of annuities in providing guaranteed lifetime income.

Is Buying an Annuity in a Bear Market a Good Idea?

By Wade Pfau, Ph.D., CFA

As the stock market experienced unprecedented growth over the past eleven years, many people were naturally less interested in the lifetime income options from pensions or annuities. Who wouldn’t rather have all the assets today so they can invest them with the idea of earning high returns?

Adjustments For A Conservative Return Assumption

By Wade Pfau, Ph.D., CFA

Consider three scenarios: An individual investing a lump-sum amount for thirty years An individual saving a fixed percentage of a constant inflation-adjusted salary at the end of each year over a thirty-year accumulation period An individual withdrawing the maximum sustainable constant inflation-adjusted…

A Guide to a Conservative Return Assumption

By Wade Pfau, Ph.D., CFA

A simple approach for building a financial plan is to decide on a rate of return for the investment portfolio and to plug that value into a spreadsheet to represent assumed asset growth. Historical data may be used to calculate historical average…