There’s been a lot of ‘sturm und drang’ around what the markets have been doing lately. The financial media has been talking about how this is the sign of the inevitable end of the world. Of course, we’ve had a few things lately that were also supposed to be signs the world crashing down on our ears. But, well, the world is […]
A client brought up the concept of being too diversified recently, and it gave me pause. My initial reaction was that there is no such thing . Diversification is a good thing. It allows you to minimize risks inherent in individual investments (company gets sued, senior executive leaves, “next big thing” flops, etc.) and take […]
Inflation and the four L’s of retirement: longevity, legacy, lifestyle, and liquidity.
Often the least sexy advice is the right advice. It’s not exciting, but it will accomplish your goals. This goes for investing, too. Think of your portfolio as a farm. You’ll have good years and bad years, but if you focus on the important parts and don’t let yourself get distracted, you’ll reap the rewards […]
Financial markets are constantly on the move, and those moves can have serious implications for what your retirement will look like. Still, most people don’t really have any clue as to why the markets move the way they do.
Rather than developing an exhaustive list of to do’s that may or may not be appropriate for everyone, our approach is to help the client develop a retirement framework for retirement or way of thinking about retirement. We call this the “CARE” retirement framework and it will help you build a foundation for a successful retirement.
Risk drives everything about your investments, but all risk is not created equal. For most investors (and most of the financial industry) dealing with risk is a lot like making sausage. People want what it gets them, the investment returns, but they don’t want to deal with the process and the uncertainty that risk implies. […]
Why have markets been good to investors over the long-term? Why should you get those returns for simply investing your money? The reason: the market is paying you to take on risk.
Most people don’t think too much about their bonds. They really are the boring foundation for your portfolio. However, occasionally they spring to the surface, and this is one of those times. Lately, a number of people have been wondering why they should be investing in bonds, since we’re obviously in a period of rising […]
Taking distributions from an investment portfolio amplifies the impacts of portfolio volatility, making retirement income planning particularly tricky as distributions tend to be the primary income source for retirees. We can use Monte Carlo simulations to show the increase of money-weighted investment returns in retirement, which has important implications about the choice for a fixed portfolio return assumption.