Do Bonds Help Diversify Your Investment Portfolio?
Diversification is a good thing. It’s the only free lunch in finance.
The Possibilities of Broader Diversification in Retirement
Often, retirees are limited to accepting whatever a researcher assumes about market returns in order to obtain guidance about sustainable spending rates. I proposed a general framework for determining a safe withdrawal rate for a given retirement duration, acceptable failure probability, asset allocation, and capital market expectations.
Should You Use a Rising Equity Glide Path in Retirement?
Retirement income comes in many forms. Wade Pfau considers the pros and cons of a rising equity glide path.
The Dangers of Putting Our Faith in Statistics
Statistics are great and all, but just because the numbers say something will happen doesn’t make it the gospel truth.
Which Makes More Sense for Retirees: A Total-Return or Income Portfolio?
Total-return investing focuses on building diversified portfolios from stocks and bonds to seek greater long-term investment growth.
How Index Investing Became What It Is Today
Index investing came from humble beginnings to become one of the most widely used strategies in use today.
What Is the Stock Market and How Does It Work?
Before you go investing your life savings in the stock market, you should have a basic understanding of what the market is and how it works.
How Can I Manage Sequence Risk in Retirement?
Sequence of returns risk is a major concern for even the most well-prepared retirees, but there are steps you can take to manage it.
One of the Most Successful Active Managers of all Time Shows Why Active Management Doesn’t Work
The appeal of market timing is obvious. Who wouldn’t want to get in and out of the market at the best time every time? We’ve talked a lot about market timing in the past – timing risk premiums, trying to time the markets on a daily basis, and the importance of staying disciplined even when it seems obvious the markets are going to go down.
Indexes 101, Part 2: Why So Many Indexes?
Everyone has heard of the S&P 500 and Dow Jones, but what’s the difference between the two? And which one should you trust?
