Based on past investment returns a 1994 study found one could expect their retirement assets to last 30 years if they took out no more than 4% each year, adjusted for inflation. If you aren’t familiar with the 4% guideline for withdrawing assets in retirement, search for 4% rule in this blog. The problem with…
Month: April 2020
What to do if you lose your health iinsurance?
Too Many Americans are losing their health insurance along with their jobs. One of the many perils of our peculiar method of providing most health insurance (note that insurance is different from health care). Virtually all industrialized nations provide some form of health care to their citizens. The US stands alone. Medicaid may be your…
How to survive a bear market
“Investors can survive a bear market the same way hikers survive an encounter with a bear: Remain calm and don’t make sudden moves” as Wall Street Journal writer Jason Zweig advised on April 4-5, 2020. See: Staying safe around bears: https://www.nps.gov/subjects/bears/safety.htm Consider your entire portfolio, including your human capital and Social Security benefits.as Zweig explains:…
How I learned to stop worrying and love the bear market
Spencer Jakab, writing for The Wall Street Journal (3/28-29/20) explains: A surprising share of a new bull market’s returns pile up in its very early stages, when the average investor is at their most fearful “Investor psychology in a major bear market is a mirror image of what it was the past few years: The…
So you think you’re going to time the market and jump in when things look good
Forget about it! The stock market lurches up and down in dramatic gains and losses with no warning!No bell rings at the bottom of the market signaling it’s time to buy!Some recent examples, among the gut wrenching downward drops:March 27, 2020 the Dow Jones Industrial Average jumped 12.8%! in one day!April 9, 2020: the DJIA…
Who manages the money in a relationship?
Common wisdom tells us that the partner who is most knowledgeable about money becomes the money manager. Sounds logical.But that’s not what researchers Adrian Ward and John G. Lynch both psychologists and marketing professors found.Examining 313 couples early in their relationship, they asked about financial literacy, credit score, income, and time spent on household work.…
Coronavirus: How to help and why it’s good for you
Writing for The Wall Street Journal (4/17/20) Michelle Ma writes: “When you’re down, help others.”“Psychologists and stress researchers have long understood the mental and emotional benefits of doing good.”Research by Dr. Emily Ansell demonstrated that “performing compassionate acts, even small ones, can help mitigate the negative effects of stress on an individual’s mood and mental…
A Simple Global Market Portfolio
A Simple Global Market Portfolio consists of “all stocks, bonds and other assets that are readily tradeable. This is the mix of investments that’s owned by all investors worldwide and reflects our collective judgment of what different securities are worth” writes Jonathan Clements in the Humble Dollar weekly email. Sign up at https://humbledollar.com You can…
Worried retirement savers and retirees should consider annuities
Expert: Worried retirement savers should buy annuities People planning to retire this year should buy an annuity to guarantee future income now because annuity payouts that have been falling because of declining interest rates could fall further, says retirement income expert Wade Pfau “The simple income annuity can fit in for anyone who’s panicking about…
Why is US stock market doing OK while the economy is tanking?
Investors flock to US equities Investors worldwide are looking past economic data and coronavirus statistics to seek haven in US equities. Emerging-market equities are the cheapest against the S&P 500 in 12 years, while the MSCI USA Index is near a 20-year high against the rest of the world. Full Story: Bloomberg (tiered subscription model)…