One withdrawal strategy that you could use for your retirement income is to withdraw a fixed percentage of your portfolio each year. Because of its simplicity this approach may be appealing to you. It is also very easy to implement. Continue reading
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 in investment portfolios.
The risk comes in their application, and the popular strategy of loading up on dividend paying stocks exposes retirees to more risk than they usually realize. Continue reading
What is a Roth conversion ladder and how can it help you fund early retirement? I’ve written before on the five year rules of Roth IRA’s. This strategy utilizes a specific rule that affects Roth IRA conversions, and provides a means of taking tax-efficient withdrawals from your retirement account BEFORE you turn 59.5. Continue reading
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.
This historical account illustrates how prominent bankers were held in such high regard that they were inherently trusted by the public. That idea is laughable now, but was a crucial truth in the buildup and subsequent unraveling of American financial system of the 1920’s.
In this review I highlight some of the key points of the story. If you are interested in the history of the American financial system, and particularly the crash, this is a great book. Continue reading