Investing
Two Philosophies of Retirement Income Planning
Within the world of retirement income planning, the siloed nature of financial services between investments and insurance leads to two opposing philosophies about how to build a retirement plan.
Read MoreWhich 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.
Read MoreProphets & Losses: Predicting the Market is a Losing Proposition
WHAT IS OCCAM’S RAZOR? Occam’s Razor is a principle attributed to William Occam, a 14th century philosopher. He stressed that explanations must not be multiplied beyond what is necessary. Thus, Occam’s Razor is a term used to “shave off” or dismiss superfluous…
Read MoreRetirement Income Strategies with Annuities
Income annuities come in a variety of shapes and sizes. It can be overwhelming to know which one makes the most sense for your situation. In this column, I explore how income annuities work and what options are available.
Read MoreThe Value of Financial Advice
I am often asked whether it is worth the cost to hire a financial advisor. After all, they charge you money to make you money. People say they can listen to the news and know where and how to invest, so, “Wouldn’t I be better off just keeping that fee for myself?” That is an excellent question with an answer that depends on many factors.
Read MoreIs a High CAPE Cause for Alarm? Part 2: Valuation-Based Asset Allocation
Discussion around PE10 focuses primarily on how to adjust expectations about future stock market returns based on its value. A more controversial topic is whether it is beneficial to adjust strategic asset allocation in response to where PE10 is currently situated.
Read MoreIs a High CAPE Cause for Alarm? Part 1: CAPE’s Relationship to Stock Returns
Market predictors have taken many forms over the years, but no formula or person has ever gotten it completely right. The market is unpredictable. That’s just the way it is. But that hasn’t stopped people from trying, and it doesn’t necessarily mean we should ignore them all.
Read MoreRob Arnott’s Problem with Target-Date Funds (and Why I Disagree)
Human capital theory says young people’s wealth is mostly in the form of future earnings, giving them the liberty to invest their relatively smaller portfolios more aggressively. This capacity tends to diminish with age. It is here that target-date funds find their basis, and it is also where Rob Arnott and I disagree about the value of such funds
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