Proper financial planning that provides for our financial needs in retirement is perhaps the prototypical example of willful blindness. We all know that most people have not saved enough to provide for a sustainable long-term income in retirement. The core issue here is that we (as a society and as individuals) are making consistently bad [...]
Archive for the ‘401(k)’ Category
Are We Hard-Wired To Make Bad Financial Choices?
Posted in 401(k), Active Investing, Behavioral Finance, financial planning, Investors, Long-term investing, Low Cost Investing, Market Outlook, Markets, Passive Investing, Regular Investing, Retirement, retirement income, retirement planning, Wealth, tagged college debt, college education, housing bubble, mortgage, mortgages debt, Real Estate, saving for college on May 18, 2012 | 1 Comment »
Sell in May? 9 Trillion Reasons to Say “No”
Posted in 401(k), Active Investing, Asset Allocation, Diversification, financial planning, Global Investing, Investors, Leverage, Long-term investing, Market Outlook, Uncategorized, tagged bonds, Fed, Federal Reserve, G4, interest rates, sell in may, sell in may and go away, stocks on April 20, 2012 | 3 Comments »
Guest Post by Contributing Editor, David Kotok, Chairman and Chief Investment Officer, Cumberland Advisors. The old adage “Sell in May and go away” was good guidance for stock markets last year. The market peaked on April 29 and bottomed out on October 3. For a detailed discussion of this period and the subsequent bull-market recovery, [...]
The Biggest Unknown in Financial Planning
Posted in 401(k), Active Investing, Asset Allocation, book review, Diversification, financial planning, Income Investing, Investors, Leverage, Long-term investing, Low Cost Investing, Market Outlook, pension plans, pensions, Personalization, Rebalancing, Retirement, retirement income, retirement planning, Risk, Stock Investing, Uncategorized, Volatility, Wealth, tagged bonds, government bonds, monte carlo, safe income on April 10, 2012 | 3 Comments »
In a recent blog post, I reviewed a new book on the future of the Equity Risk Premium (ERP). For those who are not familiar with the ERP, it is the additional return that investors expect to receive for bearing the risk of owning company stock vs. owning a low-risk asset like government bonds. As [...]
Should You Invest In an Initial Public Offering?
Posted in 401(k), Active Investing, Asset Allocation, financial planning, Income Investing, Investors, Leverage, Long-term investing, Low Cost Investing, Market Outlook, Risk, Uncategorized, tagged Facebook, Google, LinkedIn on March 27, 2012 | 3 Comments »
Guest Blog by Vanessa Richardson, Mint.com. Facebook recently filed for an initial public offering (IPO) to raise $5 billion in its IPO, putting its total valuation at $100 billion. Many investors, both institutional and individual, are drooling over the prospects of buying into the hottest company on the block – for now. I say for now, [...]
The Big Retirement Shift: From Saving Up to Drawing Down
Posted in 401(k), Active Investing, Asset Allocation, Income Investing, Leverage, Long-term investing, Low Cost Investing, Market Outlook, Market Timing, Mutual Funds, Passive Investing, pensions, Retirement, retirement income, retirement planning, Risk, Stock Investing, Uncategorized, Volatility, tagged 401(k) plan, 401k, Baby Boom Generation, baby boomers, REIT, REITs, ZVI Bodie on March 20, 2012 | 2 Comments »
The financial services industry is in a period of substantial change. Low interest rates, new regulations and additional scrutiny are changing the landscape. Perhaps the biggest change is the transition of the first wave of Baby Boomers from working to retirement. Not only is this generation huge, but its also the first “401(k)” generation. The [...]
Retirement: Demographics and Destiny
Posted in 401(k), financial planning, Leverage, Long-term investing, Market Outlook, Portfolio Investing 101, Retirement, retirement income, retirement planning, Risk, Stock Investing, Uncategorized, Volatility, tagged Arnott, baby boomers, Chavez, retirement, retirement income, Wall Street Journal on March 13, 2012 | 4 Comments »
In a recent interview in The Wall Street Journal titled “Bad New for Boomers,” Rob Arnott presents a fairly grim view of the retirement income that investors can expect to generate from their investment portfolios. His thesis is that aside from all of the economic turmoil that may constrain future earnings growth, there is an [...]
Calculating the Cost of a College Education
Posted in 401(k), Active Investing, Diversification, financial planning, Tools, Uncategorized, Wealth, tagged college, college education, saving for college, Tuition on February 15, 2012 | 1 Comment »
I recently came across a calculator developed by Morningstar to help families estimate future college costs and to determine whether they are on track with saving to meet the future costs of higher education. Let’s have a look at what this tool can and cannot do and how such a tool may be useful. The [...]
Dividend Stocks vs. Bonds: Are They Worth the Risk?
Posted in 401(k), Active Investing, Asset Allocation, Diversification, Dividends, financial planning, Income Investing, Investors, retirement income, retirement planning, Uncategorized, Volatility, tagged Bogleheads, bonds, Burton Malkiel, Dividend Stocks, income, Treasury bonds on February 10, 2012 | 3 Comments »
One of the recurring themes in the financial press in recent years is a warning to income-oriented investors not to pile into dividend-paying stocks to boost portfolio income. The Wall Street Journal has a recent article on this topic titled, “Why Dividend Stocks Aren’t the New Bonds.” This article is motivated by the fact that [...]
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