What Can We Learn from the Market Disasters of the 1970s?
Throughout history, when bad news and events touched the daily lives of investors and caused nest eggs to shrink, it’s been natural to ask, “Is this the end of investing as we know it? Have new developments changed things so much that the old patterns no longer apply?” These four stories should help illustrate an […]
Sustainable Retirement Spending and Market Returns
What happens to sustainable spending rates as the planning horizon extends, or
if we build in a constraint to preserve wealth and avoid portfolio depletion?
Business Owners: Did You Know You Are a Fiduciary?
Employer-sponsored retirement plans — such as 401(k)s or 403(b)s — are one of the primary sources of retirement savings for Americans. If you are an employer who has set up such a plan, you might not be aware of the responsibilities that come with your role as a plan sponsor.
The Hidden High Costs of Index Funds
Here we cover the basics of index funds. Today, many investors use index funds because they provide an easy way to gain cheap, diversified exposure to specific areas of the market. The question is this: Is an index a precise representation of the sector of the market it describes?
Does Your Mindset Affect How You Make Retirement Income Decisions?
The fields of behavioral finance and behavioral economics have uncovered various biases humans have which are great for day-to-day survival, but somewhat maladaptive for long-term investing.
Common Investor Behaviors That Hurt Investments
In my post from last week, “behavioral coaching” was suggested to have the biggest impact on real-world investor returns. In Vanguard’s analysis, being able to overcome your own behavioral quirks could add more than 1.5% to your returns, as opposed to falling victim to your own human tendencies.
A Diversified Portfolio is a Healthy Portfolio
Diversification is one of your most important financial tools. This one strategy can simultaneously limit your exposure to investment risks while also potentially improving expected returns. Best of all, the benefits of diversification are well-documented and supported by over 60 years of academic research. The Benefits of Global Diversification Diversification simply means spreading risks around […]
How Do Presidential Elections Affect The Markets?
With the presidential election coming up, people are naturally curious about what the elections mean for the stock market – and, more importantly, for their investments (and everything those investments represent).
Which Is Better for Retirement Income: Insurance or Investments?
Retirement planning experts have long debated the question: Which is better for retirement income: insurance or investments? Wade Pfau weighs in.
Understanding the Tools in Your Retirement Income Toolbox
You should be familiar with all of the tools in your retirement income toolbox. Retirement plans can be built to manage varying risks by strategically combining the following retirement income tools in different ways.
