The Coronavirus and Its Effects on the Market and Your Retirement
Just like many other areas of life, the novel Coronavirus is having a significant impact on the financial markets.
2019 – Q4 Quarterly Market Review
2019 – Q4 Quarterly Market Review
How Do Interest Rates Affect Bond Prices? Understanding Bond Duration
Most investors recognize that there is a relationship between interest rates and bond prices. At their most simple level, bonds are simply loans that the issuing organization takes from investors. And because of this, changes in interest rates have a significant impact on bond prices. However, the way that interest rates affect bond prices is […]
Understanding Bonds: A Key Ingredient in Your Retirement Portfolio
Bonds sit in a strange place in our collective consciousness. They’re the “safe” part of our investment portfolios, but they also conjure up images of Wall Street brokers with a brick sized cell phone back in the 80s. Thankfully, we don’t need to consult with Gordon Gecko about our portfolios anymore. But it is worth […]
Two Philosophies for Retirement Income Planning Part Two: Safety-First School
This article is part of a series; click here to read Part 1. The safety-first school of thought was originally derived from academic models of how people allocate their resources over a lifetime to maximize lifetime satisfaction. Academics have studied these models since the 1920s to figure out how rational people make optimal decisions. In […]
Two Philosophies for Retirement Income Planning Part One: Probability-Based
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. There is an old saying that if the only tool you have is a hammer, then everything starts to look like a nail. This tendency is […]
Changing Risks in Retirement, Part Three: Spending, Inflation, and Cognitive Decline
This article is part of a series; click here to read Part 1. Spending shocks Unexpected expenses in retirement come in many forms, including: unforeseen need to help family members divorce changes in tax laws or other public policy changing housing needs home repairs rising health care and prescription costs long-term care Retirees must preserve […]
Changing Risks In Retirement Pt. Two – Unknown Longevity
This article is part of a series; click here to read Part 1. The fundamental risk for retirement is unknown longevity, which is summarized in the question, how long will your retirement plan need to generate income? It is the risk of running out of assets before running out of time. The length of retirement […]
Changing Risks in Retirement
It is important to understand from the very outset how changing risks are primarily what separate retirement income planning from traditional wealth management. Retirees have less capacity for risk, as they become more vulnerable to a reduced standard of living when risks manifest. Those entering retirement are crossing the threshold into an entirely foreign way […]
The Retirement Researcher Manifesto – Part Two
This article is part of a series; click here to read part One. Let’s continue to review the last 3 guidelines in the manifesto for my approach to retirement income planning. Approach retirement income tools with an agnostic view The financial services profession is generally divided between two camps: those focusing on investment solutions and […]
