Charitable Giving with Donor Advised Funds

By Wade Pfau, Ph.D., CFA, RICP®

If you make lots of charitable contributions, it behooves you to understand 2 items with regard to tax planning for donations. 1) There can be large additional benefits…

Why the Dow Doesn’t Work

By Bob French, CFA

With Apple’s addition to the Dow (or more properly, the Dow Jones Industrial Average), now is a great opportunity to look at how to think about the Dow, and indices more broadly. Indices are great tools for understanding what is going on…

Maximizing the Combined After-Tax Value of IRAs and Roth IRAs

By Wade Pfau, Ph.D., CFA, RICP®

In the Spring 2015 issue of the Journal of Personal Finance, I was the co-editor with Joseph Tomlinson for this research journal sponsored by the IARFC. The issue has five articles, and the issue’s theme evolved rather organically into retirement taxation topics.

CoRI Index: A Tool to Lock-in Annuity Prices without Annuitizing

By Wade Pfau, Ph.D., CFA, RICP®

The CoRI Indexes are bond funds whose prices are calibrated to move in lock-step with the price of an income annuity with a 2.5% COLA which will begin income at age 65.

Sequence Risk vs. Investment Risk

By Wade Pfau, Ph.D., CFA, RICP®

A lot has already been written about the sequence of returns risk confronting retirees. But the full implications of sequence risk have not been completely internalized. Retirees become more vulnerable to investment volatility, because as they withdraw from their portfolio they may find themselves locking in investment losses. It’s the opposite effect from dollar cost averaging.

To Rise or Not To Rise: Stock Allocation During Retirement

By Wade Pfau, Ph.D., CFA, RICP®

Both the February and March 2015 issues of the Journal of Financial Planning include articles which address and extend the work on rising equity glidepaths during retirement, which Michael Kitces and I published in the January 2014 issue. Admittedly, the March one…

Should I Contribute to a Roth IRA or a Traditional IRA?

By Wade Pfau, Ph.D., CFA, RICP®

At a basic level, the answer to this question relates to whether one is taxed at a higher marginal tax rate now compared to when one will be withdrawing these dollars in retirement.

Lifecycle Finance: An Alternative For A Lifetime Financial Plan

By Wade Pfau, Ph.D., CFA, RICP®

Some of the most common rules of thumb used to guide retirement planning include the following:

Retirees should be able to sustainably withdraw 4% of their retirement date assets over their retirement.

How Do I Build a TIPS Bond Ladder for Retirement Income?

By Wade Pfau, Ph.D., CFA, RICP®

Building bond ladders for retirement income is an important but understudied topic. Especially as we are at a point in time when many are worried about future interest rate increases, bond mutual funds will lose value as rates rise, while a bond…

Why Retirees Should Choose DIAs over SPIAs

By Wade Pfau, Ph.D., CFA, RICP®

My new column at Advisor Perspectives is called, “Why Retirees Should Choose DIAs over SPIAs.” In the past, I’ve written about the efficient frontier of retirement income, finding that retirees can best satisfy twin goals of preserving their lifestyle spending needs in…

Claiming Social Security at 62 or 70

By Wade Pfau, Ph.D., CFA, RICP®

A consensus in the financial planning profession is that while the Social Security claiming decision is quite difficult and there can be exceptions, it is often beneficial to delay the receipt of Social Security retirement benefits. I will provide an exploration of…

Risk and Retirement Finances

By Wade Pfau, Ph.D., CFA, RICP®

In my last blog post, I described a recent article by Paula Hogan and Rick Miller about different approaches to financial planning.  I’d to come back to an issue from that article related to risk management for retirement finances. They make a…