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 […]
What’s the Most Appropriate Planning Age for Retirees?
The relationship between how long you’ll live and your sustainable spending rate is a big piece of the retirement planning puzzle.
The Dangers of Putting Our Faith in Statistics
Statistics are great and all, but just because the numbers say something will happen doesn’t make it the gospel truth.
How Can I Manage Sequence Risk in Retirement?
Sequence of returns risk is a major concern for even the most well-prepared retirees, but there are steps you can take to manage it.
Using Target-Date Retirement Income Funds To Guard Against Interest Rate Risk In Retirement
Dimensional Fund Advisors (DFA) takes a more direct approach to immunizing retirement liabilities through their target-date retirement income funds. These funds provide a useful case study for understanding the role bond funds play in meeting retirement expenses.
What Are Annuities?
Annuities are like power tools. In the right hands, they can help you considerably, but if you don’t know what you’re doing, you could cut your fingers off.
