Market Valuations

Are the Markets’ New Highs the Current Worry?

There are a handful of times a year when certain events precipitate a market drop. So much so, that we feel it is helpful to provide perspective on why investing in the stock market is a great way to help you build your asset base so when you retire you can better generate retirement income…

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What Makes the Markets Move

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. They see it as some dark alchemy, or at best, essentially random. In the long run,…

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What Risks Are Worth Taking

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.…

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What are Market Valuations? (Part 2)

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.

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What are Market Valuations? (Part 1)

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.

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US Markets Are Outperforming Global Markets, What Should You Do?

To say international stocks haven’t been doing great relative to US stocks is a massive understatement. What does that mean for your portfolio?

Most of the investment advice you get is (or should be) conditional. Advisors tend to steer clear of definitive, blanket statements, but this is one that I’m pretty comfortable making if you have stocks in your portfolio, you should probably own both domestic and international st

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The Perks Of Being A Flexible Spender In Retirement

William Bengen’s 1994 article introduced the concept of the 4% rule for retirement withdrawals. He defined the sustainable spending rate as the percentage of retirement date assets which can be withdrawn, with this amount adjusted for inflation in subsequent years, such that the retirement portfolio is not depleted for at least thirty years.

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A Safer Approach To Retirement Income Planning

The relationship between stock market valuations and sustainable spending rates has great implications for retirement planning when we consider how the pre-retirement savings phase and the post-retirement withdrawal phase can be linked through the stock market valuation level at retirement.

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