Retirement Insights
Review: Retirement planning is more than just saving money
All too often, when people think about retirement planning, they’re really thinking about investing. While investing is (often) a really important part of retirement planning, it’s only a piece of the puzzle. Retirement planning covers pretty much everything – it’s figuring out what you want to accomplish in retirement, and how you’re going to pay…
Read MoreReview: Aurinia’s stock plunges after big share offering at deep discount
It’s really easy to forget the underlying purpose of the stock market. Everyone always looks at it essentially as a horse race or a measure of how well a company is doing. But the reason the stock market exists is for companies to raise money. That’s the whole point of issuing (in other words, selling)…
Read MoreHow To Buy Individual Bonds
Bonds can be purchased on both primary (when bonds are first issued) and secondary (subsequent trading) markets. There are wholesale markets for large institutions (with trades of at least $1 million) and retail markets for individual households. TreasuryDirect.gov is available for purchases of traditional U.S. Treasuries, TIPS, and I bonds, in taxable accounts, without any…
Read MoreTaxonomy Of Retirement Income Bond Ladders
When it comes to retirement income bond ladders, Joe Tomlinson created a taxonomy of different types in his 2014 Advisor Perspectives column, “Why the Risk Reduction Benefits of Bond Ladders Have Been Overstated.” His list inspired me to create a more extended version in Exhibit 1. Click here to download Wade’s fact sheet, “What Is…
Read MoreUnderstanding the Funded Ratio
Everyone wants to know where they stand with their finances – Will I be able to have the retirement I want? Do I have enough? Roughly how far do I have to go? Am I overfunded (believe me, it happens)? A funded ratio is a great tool for taking stock of your financial picture as…
Read MoreReview: What millennials wish their aging parents would tell them
No one likes talking about what will happen as they get older. It’s just not really a fun topic. But it’s an important one. Fidelity recently released a study that shows a massive disconnect between what parents and their children expect as their parents age. As the author says, your children are happy to help,…
Read MoreReview: Some People Have a Crazy Idea of What They Can Afford in Retirement
Figuring out how much you can safely spend from your investment portfolio in retirement is hard. It’s incredibly easy to make a bad decision, the consequences are severe, and you won’t even realize you’ve made a mistake until it’s too late to do anything. While there’s some debate about what a “true” safe withdrawal rate…
Read MoreThe Essentials Of Bond Laddering For Retirement
Those seeking a do-it-yourself approach to duration matching with bond funds may underestimate the difficulty of the task. Duration-matching is not straightforward when shares of the bond fund must be sold to meet ongoing retirement expenses. If rates have risen, shares of the bond fund may need to be sold at a loss, with more…
Read MoreGuarding Retirees From Interest Rate Risk With The Help Of CoRI
Last time, we discussed how DFA’s target-date retirement income funds can help guard retirees from interest rate risk. Today, I want to look at another example of a bond fund used as a safeguard against interest rate risk: BlackRock’s series of CoRI Retirement Indices. The CoRI Retirement Indices are gauged to help retirees understand the cost of…
Read MoreBlog posts linked on this page are intended for convenience, educational, and informational purposes only. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. The adviser does not endeavor to update or remove blog posts and articles after initial publication. No linked content should be construed as individualized advice or recommendations, and the discussions contained are not a substitute for investment advice from a professional adviser. This commentary should not be regarded as a complete analysis of the subjects discussed.