Investing

Retired couple relying on dividends for retirement income

What are the Risks of Relying on Dividends for Retirement Income?

What are the risks of relying on  dividends for retirement income? Like most things used in moderation there isn’t anything wrong with dividends, or the stocks that pay them.  In fact, higher-dividend paying stocks are usually older, established, and strong companies. They can be good components of retirement income plans and help provide some diversification …

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The Hellhound of Wall Street Ferdinand Pecora

The Hellhound of Wall Street – How Ferdinand Pecora’s Investigation of the Great Crash Forever Changed American Finance

The Hellhound of Wall Street – How Ferdinand Pecora’s Investigation of the Great Crash Forever Changed American Finance provides a narrative of the Senate hearings that followed the Great Crash. It is an interesting story for it’s lively details of the personalities involved but also illustrates how far our perceptions of the financial elite have come. …

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Man sitting at a table thinking about inflations effect on his portfolio

Inflation’s Effect on Retirement Portfolios

Retirement income is inherently dependent on many different factors. This is true because retirement income planning involves accounting for unpredictable variables over a long time horizon, and weighing them against the comfort level of the individual retiree. Inflation is one of those factors. Even for a given amount of retirement savings, different retirees can have …

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morning coffee thinking about a bond ladder

Secure a Minimum Retirement Income with a Bond Ladder

Retirement planning is a comprehensive issue. What I mean by this is that there are a number of sub-components of retirement planning that are pretty distinct from each other. Consider the two broad phases of retirement planning. First is the accumulation phase when the investor sets aside assets as they are earned in order to …

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Bonds Chart

Bond Prices and Rising Interest Rates

Bonds are a common asset in retirement accounts. Whether held individually or through an ETF, most retirement accounts contain bonds. Bonds are most often held because of their relative safety over equities, and for income through their contractual obligations to pay interest. However, bonds still exhibit market risk that needs to be managed. Buying bonds …

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sequence of return risk calculation

Sequence of Returns Risk in Retirement

What is sequence of returns risk? We often think of investment return as an average rate over some period, such as 10, 15, or 20 years. This is especially true regarding investment returns within a retirement planning context where the investment horizon is often very long.   Anyone interested enough to be reading this knows that …

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6 Events that Can Interrupt your Retirement Plans and What You Can Do about it

C.S. Lewis said, “You are never too old to set a new goal, or dream a new dream.” Is it possible he could have known about today’s retirement crisis? The truth is, no matter how much we prepare, sometimes, life happens. The closer we are to retirement age, the more strategy we need to employ …

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Why are Investor’s Returns Often Different than the Investments They Hold?

The research on investor performance is clear. The average mutual fund investor tends to have worse returns than the average mutual fund. Behavioral factors have a lot do with this. People tend to be emotional, and can often react in precisely the most incorrect way possible when markets are volatile. Fear often causes investors to …

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socially responsible mutual funds performance chart

Do Socially Responsible Mutual Funds Perform Well?

An important consideration of any investment strategy is the ability of the strategy to provide satisfactory results. Sustainable or socially responsible mutual funds and investment strategies are not immune to this line of investigation. Arguably, most investors who choose SRI investing likely emphasize the altruistic traits of the investments themselves over investment performance. However, even …

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