Withdrawal Sequencing Avoiding the Pitfalls of Retirement Distribution Order

Withdrawal Sequencing: Avoiding the Pitfalls of Retirement Distribution Order

By Bob French, CFA

Taking retirement income from your investment portfolio in retirement is like walking through a minefield. Most people don’t think about it, but your distribution strategy in retirement – how you actually take money out of your portfolio – and the resulting taxes can have a significant impact on how long your money lasts and how much you’ll be able to spend throughout retirement.

Whether Gold Prices Are Up or Down, You Should Stay Away

By Alex Murguia, PhD

Along with China and the potential implications of rising interest rates, many stories have come out this week heralding the fall of gold and the new world we now live in as a result. It seems only a few years ago, we were…

What is an RMD

What is an RMD?

By Bob French, CFA

Here are the answers to some of the most commonly asked questions about required minimum distributions (commonly referred to as RMDs or MRDs).

The Value of Financial Advice

By Wade Pfau, Ph.D., CFA, RICP®

I am often asked whether it is worth the cost to hire a financial advisor. After all, they charge you money to make you money. People say they can listen to the news and know where and how to invest, so, “Wouldn’t I be better off just keeping that fee for myself?” That is an excellent question with an answer that depends on many factors.

Is a High CAPE Cause for Alarm? Part 2: Valuation-Based Asset Allocation

By Wade Pfau, Ph.D., CFA, RICP®

Discussion around PE10 focuses primarily on how to adjust expectations about future stock market returns based on its value. A more controversial topic is whether it is beneficial to adjust strategic asset allocation in response to where PE10 is currently situated.

Is a High CAPE Cause for Alarm? Part 1: CAPE’s Relationship to Stock Returns

By Wade Pfau, Ph.D., CFA, RICP®

Market predictors have taken many forms over the years, but no formula or person has ever gotten it completely right. The market is unpredictable. That’s just the way it is. But that hasn’t stopped people from trying, and it doesn’t necessarily mean we should ignore them all.

Evaluating Investments vs Insurance in Retirement

By Wade Pfau, Ph.D., CFA, RICP®

We must avoid from the notion that investments or insurance alone will best serve retirees. Investments vs Insurance – each has its advantages

Occam’s – “How Does the Situation in Greece Affect Me?”

By Bob French, CFA

WHAT IS OCCAM’S RAZOR?Occam’s Razor is a principle attributed to William Occam, a 14th century philosopher. He stressed that explanations must not be multiplied beyond what is necessary. Thus, Occam’s Razor is a term used to “shave off” or dismiss superfluous explanations for a given event.…

White Paper: Reduce Retirement Costs with Deferred Income Annuities Purchased Before Retirement

By Wade Pfau, Ph.D., CFA, RICP®

This study uses a methodology proposed by Milevsky (2006) to evaluate the impact of guaranteed income products on the cost of funding retirement and shows when, and for which clients, a deferred income strategy makes sense.

For Couples, Not Talking About Money Can Be Costly

By Alex Murguia, PhD

I was stunned to read the first paragraph of this article. “Do you know how much money your spouse makes? …According to a biannual retirement survey of over 1,000 couples by Fidelity Investments, it’s a question 43% of couples can’t answer—up from 27%…

Bucket of Cold Water Dumped on this Investing Strategy

By Alex Murguia, PhD

Poor Greece. Not even the Greek alphabet has been given safe quarter these past weeks. Perhaps it is the ever increasing popularity of ETF strategies and the continuing underwhelming performance of active managers, but one thing is clear if you are trying…

How to View Social Security vs. a Long-Term Stock Portfolio

By Wade Pfau, Ph.D., CFA, RICP®

MarketWatch columnist and colleague Robert Powell recently shared an intriguing question with me from one of his readers on the merits of the Social Security retirement payout versus the returns on a conservative, long-term stock portfolio.