Most people are focused on saving for retirement so they’ll have the money they need to fund their income in retirement. However, ask most people how much they’re going to spend in retirement and they have no idea. To plan for retirement effectively, you need to have some sense of what your spending needs are…Read More
Diversification is a good thing. Nearly everyone agrees that it’s just about the only free lunch in finance.
But not many people stop and think about how diversification actually helps them, beyond the general “don’t put all your eggs in one basket” argument.Read More
People seem to think commodities (especially gold) are suitable guards against inflation. I want to explain why that’s not true, and tell you about some of the much better tools available.
I want to explain why that’s not true – at least over any useful time frame – and then tell you about some of the much better tools available.Read More
The presidential elections usually offer some very stark choices, so often people are concerned about how the election results will effect the economy. Let’s take a deep breath and try to take an objective look at how the election could affect your portfolio.Read More
By reviewing existing research on variable spending, we can identify and describe key representative variable spending strategies from the countless possibilities, and classify them into a general taxonomy.Read More
How exactly should retirees adjust their spending in response to changes in the value of their retirement portfolios? Countless variations on spending rules are discussed everywhere from research papers to internet discussion boards.Read More
From a global perspective, asset returns enjoyed a particularly favorable climate in the twentieth-century United States, and to the extent that the U.S. may experience reversion in the twenty-first century, present conceptions of safe withdrawal rates may be unsafe.Read More
William Bengen’s 1994 study and the Trinity Study were only meant to serve as starting points.Read More
The financial market returns experienced near retirement matter a great deal more than most people realize. Even with the same average returns over a long period of time, retiring at the start of a bear market is very dangerous.Read More