News

3
Feb

Join Our Special “Love Insurance” Twitter Chat during #InsureYourLove

Join Our Special “Love Insurance” Twitter Chat during #InsureYourLove Join us as we moderate a Twitter Chat during Insure Your Love Month along with NAIFA. We’ll discuss new data that shows Americans are delaying traditional life milestones and following alternative paths in favor of financial security. We hope the chat helps promote how important financial security, including having adequate life

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26
Jan

Bond Pricing 101

Bond Pricing 101 As a bond provides a contractual right to a series of future payments received at specified points of time, the price for a bond is simply the present discounted value of the future cash flows. The face value of a bond will be repaid at maturity. A zero-coupon bond provides only a bond’s face value,… The post

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23
Jan

Laddering with Individual Bonds

Laddering with Individual Bonds Duration matching is not straightforward for bond funds 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 shares sold to meet a given spending objective. This triggers sequence risk and locks… The

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17
Jan

The Yield Curve and Break-Even Inflation

The Yield Curve and Break-Even Inflation Understanding the relationship between bond risk and time to maturity and duration of a bond provides the basis for understanding the bond yield curve. The yield curve shows the yields to maturity for a series of bonds—typically US Treasury bonds—with the same credit quality but different maturity dates, along with the term structure for

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13
Jan

The TIPS You May Need – Treasure Inflation-Protected Securities (TIPS) – Part 2

The TIPS You May Need – Treasure Inflation-Protected Securities (TIPS) – Part 2 In 2003, Zvi Bodie and Michael J. Clowes published the book Worry-Free Investing: A Safe Approach to Achieving Your Lifetime Financial Goals, in which they argued that typical retirement-oriented investors should rely primarily on TIPS for their retirement savings. Of course, other financial assets should be included

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9
Jan

The TIPS You May Need – Treasure Inflation-Protected Securities (TIPS) – Part 1

The TIPS You May Need – Treasure Inflation-Protected Securities (TIPS) – Part 1 In discussing retirement liabilities, it is also important to address the issue of inflation and how to think about bonds when they are meant to fund a liability that grows with the consumer price index. Fortunately, this is now practical as the United States began issuing Treasury

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8
Jan

2019 – Q4 Quarterly Market Review

2019 – Q4 Quarterly Market Review 2018 – Q3 Quarterly Market Review Source: Retirement Researcher 2019 – Q4 Quarterly Market Review

7
Jan

5 Reasons Why Having Life Insurance Is Good for You

5 Reasons Why Having Life Insurance Is Good for You We get it: No one wants to think about death—for us or the ones we love. And a lot of people equate life insurance with death. And while it IS there if the worst were to happen, it can also do so many other things, and doesn’t have to break

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31
Dec

Bond Duration

Bond Duration Bond prices are sensitive to interest rate changes, and bond duration is a measure of just how sensitive. For instance, in Exhibit 1.1 (shown in my last article), an increase in interest rates for the simple bond from 3 percent to 4 percent caused the bond’s price to fall by 8.1 percent. This bond has… The post Bond

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24
Dec

Understanding How Bonds Work

Understanding How Bonds Work Before we can discuss bonds in depth, it is important that we establish a common understanding of what bonds are and how they work. As a starting point, a bond is a contractual obligation to make a series of specific payments on specific dates. Typically, this includes interest payments made on a semiannual basis until… The

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