Historical Market Returns – Part Two

This article is part of a series; click here to read Part One. Moving to bonds, Morningstar data shows that since 1926, the average return from intermediate-term government bonds was 5.2 percent with a standard deviation of 5.6 percent. With the lower volatility, the compounded return is only slightly less at 5.1 percent. For long-term…

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What is a Reverse Mortgage?

Reverse mortgages have gotten a bad rap. Admittedly, a lot of it was deserved. A bad rap doesn’t just happen without something to base it on. But a lot has changed since Fred Thompson was selling them on daytime TV. Now, reverse mortgages are tightly regulated at both the federal and state levels, not to…

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Do You Need an Emergency Fund in Retirement?

Most retirees struggle with how to deal with their emergency fund. It’s there to help you deal with, well, emergencies. Retirees are just as prone to emergency as others, if not more so.

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Improving Retirement Income Efficiency Using Reverse Mortgages

Maintaining higher fixed costs in retirement increases exposure to sequence risk by requiring a higher withdrawal rate from remaining assets. Drawing from a reverse mortgage has the potential to mitigate this aspect of sequence risk by reducing the need for portfolio withdrawals at inopportune times.

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