What Is The Retirement Spending Smile?
Our spending desires (and needs) change through time. Blanchett observes a “retirement spending smile” that varies slightly for retirees with different household spending levels.
What To Make of Market Volatility
In recent days, the significant market decline has resulted in renewed anxiety for many of you (I know this is blatantly obvious but stick with us). While it may be difficult to remain calm during a substantial market decline, it is important to remember that volatility is a normal part of investing. Additionally, for long-term […]
Can TIPS Help You?
Inflation is one of the most pernicious risks facing retirees. While there are a lot of ways to manage inflation risk, TIPS, or Treasury Inflation Protected Securities, are one of the few investment options that directly hedge against inflation risk. They aren’t perfect, and there are certainly some things to consider when you use them […]
Should You Try Timing to Avoid Bad Markets?
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 explanations for a given event. This concept is largely ignored within the investment […]
Why You Make Profit From Investing
Why have markets been good to investors over the long-term? Why should you get those returns for simply investing your money? The reason: the market is paying you to take on risk.
How Are You Different From The Average Investor?
Deciding on your asset allocation is one of the most important investing decisions that you will make. The asset classes that you decide to include in your portfolio will determine what you can get out of your portfolio, and your investment experience. As you would expect, there are a lot of people who want to give you a lot of advice about what the “right” allocation is. But almost none of it is good advice. Most people are focused on tactics, or what they think will work in the moment – not what will work in the long run.
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.
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.
Putting Monday’s Drop in Perspective
The appeal of market timing is obvious. Who wouldn’t want to get in and out of the market at the best time every time? We’ve talked a lot about market timing in the past – timing risk premiums, trying to time the markets on a daily basis, and the importance of staying disciplined even when it seems obvious the markets are going to go down.
How Can You Protect Yourself from Identity Theft and Data Breaches?
Data breaches are a constant concern in our modern society. As the latest in a long string of data breaches, Equifax recently announced they were the target of a cyberattack in which the sensitive information of nearly half of all Americans was compromised. You can follow this link to see if you’re one of the 143 […]