News

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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20
Dec

Two Philosophies for Retirement Income Planning Part Two: Safety-First School

Two Philosophies for Retirement Income Planning Part Two: Safety-First School This article is part of a series; click here to read Part 1. The safety-first school of thought was originally derived from academic models of how people allocate their resources over a lifetime to maximize lifetime satisfaction. Academics have studied these models since the 1920s to figure out how rational

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18
Dec

Two Philosophies for Retirement Income Planning Part One: Probability-Based

Two Philosophies for Retirement Income Planning Part One: Probability-Based Within the world of retirement income planning, the siloed nature of financial services between investments and insurance leads to two opposing philosophies about how to build a retirement plan. There is an old saying that if the only tool you have is a hammer, then everything starts to look like a

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16
Dec

Recap: What happened to the retirement landscape in 2019?

Recap: What happened to the retirement landscape in 2019? As 2019 comes to an end, it’s worth taking a moment to reflect back on what took place in the retirement landscape during the past 12 months and how it could affect those preparing for life after work. In recent years, the United States has witnessed a shift from employer-based retirement

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11
Dec

Changing Risks in Retirement, Part Three: Spending, Inflation, and Cognitive Decline

Changing Risks in Retirement, Part Three: Spending, Inflation, and Cognitive Decline Spending shocks Unexpected expenses in retirement come in many forms, including: unforeseen need to help family members divorce changes in tax laws or other public policy changing housing needs home repairs rising health care and prescription costs long-term care Retirees must preserve flexibility and liquidity to manage unplanned expenses.

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