Market Analysis
Renewed fears of a double-dip recession, policy paralysis across the U.S. and Europe, and the looming threat of a financial crisis in the euro zone combined to create very volatile markets and a devastating quarter for equities. Equity Markets The third quarter of 2011 saw the value of small stocks and international stocks fall more […]
Evaluating Your Social Security Options
As retirement age approaches many questions arise about Social Security including the following: Should I start drawing benefits as soon as possible or postpone? If I do postpone, how long should I wait? If I am married or divorced, how can that impact my decision? When will I “breakeven” on my decision to postpone? Rules […]
Planning for Medicare
Why would an investment advisor’s website contain a blog about Medicare? The cost of health care is an increasingly important piece of retirement planning, and it is a shock to many who have been covered under an employer plan that is often subsidized by the employer, sometimes at 100%. Most employers either reduce the subsidy […]
Retirement Income Strategies
I was recently challenged by an investor couple attempting to determine the amount of annual spending they can make based on their portfolio. How, they asked, can we make a rational decision when we do not know the future return in investment markets, the future rate of inflation or their life expectancy? My general rule […]
More on Portfolio Inflation Strategies
\A May 2011 lengthy article by Gahagan and Martin, suggests a modest, permanent allocation to inflation-hedging -assets , such as TIPS, commodity futures, and REITs. The interesting part of the article is a discussion of how different inflation-hedging assets perform across the inflation cycle. For example, TIPS perform best in an inflationary period of less […]
Hedging Inflation: Comparing Commodity Futures and TIPs
I have generally recommended the use of Treasury Inflation Protected Securities (TIPs) as a hedge against inflation. Are Commodity Futures an attractive inflation hedge similar to TIPs? In a March 2011 article, author Geetesh Bhardwaj, addresses the use of various investments as a hedge against unexpected inflation. (Let me know if you would like a […]
What Everybody Ought to Know About Dividend Paying Stocks
All too often lately, I have heard people talking about their individual stock holdings and the income they are providing them in retirement. They love mentioning how they are receiving quarterly income from these companies regardless if the stock market is trending up or down. The stockbrokers refer to this as the “get paid while […]
Mint.com – The Evolution of Personal Financial Software on the Web
Most successful investors start out as diligent savers. Saving is the tried and true path to reach your financial goals. For young people, the goal may be a car, a trip or an education. As we get older our goals expand to include buying a home, starting a family, paying for a child’s education and […]
Market Update
The second quarter of 2011 provided a rollercoaster ride in the stock market that will look uneventful in the history books. April was a strong month for the market, but by mid-June the S&P 500 had fallen more than 7% from its April high, erasing the first quarter gains and falling back to where it […]
The Folly of Active Management and TV Gurus
Last year I wrote an article about where to invest in 2010 and took that opportunity to remind investors not to fall into the excitement of active management and stock trading. Instead I cautioned them to focus on what you can control, like investment cost, risk, and asset allocation and to ignore the rest. So […]