John Bogle on “Enhanced” Index Funds – Can They Beat the Market?

Bond Basics for Individuals: A Guide to Buying and Selling While people speak of the bond market as if it were one market, in reality, there is not one central place or exchange where bonds are bought and sold. This market is so vast that its size is difficult to imagine. Overwhelmingly, this is an…

 

The Myths and Realities of Retirement Planning

The Mathematics of Retirement Portfolios This article deals with several important retirement questions: “How much money do I need in my investment portfolio at the start of retirement?” and “How much can I safely withdraw from my investment portfolio during the retirement years?” A Do-It-Yourself Approach to Target Date Retirement Investing Target date mutual funds…

 

Reviewing Readers’ Predictions for 2018, Looking Ahead to 2019

This week’s AAII Weekly Digest highlights these “must-read” AAII articles: Financial Literacy Tied to Greater Retirement Savings An analysis of employee retirement plans found evidence supporting a link between greater financial literacy and greater retirement wealth. Those who are more literate about financial and investment concepts allocate more to stock funds, own portfolios with higher…

 

Understanding Bond Pricing and Yield

This week’s AAII Weekly Digest highlights these “must-read” AAII articles: Dividends Impact Consumption More Than Capital Gains Do Changes in dividends impact household consumption. Capital gains also have an impact, but a smaller one than dividends. The magnitude of the impact depends on household wealth, with consumption rising proportionately higher among comparatively less affluent households….

 

How to Increase Aftertax Returns by Doing Less

This week’s AAII Weekly Digest highlights these “must-read” AAII articles: Guidance on How to Follow the Level3 Passive Portfolio This portfolio of four exchange-traded funds (ETFs) should not have many changes. Many investors should be able to rebalance through additions or withdrawals. For Bucket Portfolios, the Devil Is in the Details Guidance on implementing a…

 

Do the Top ETFs Continue to Outperform?

In observation of the Christmas and New Year holidays, the next two Weekly Digest emails will go out on Wednesday, December 26, 2018, and Wednesday, January 2, 2019. Happy holidays! The Top Mutual Funds Over Five Years: Tech Takeover Technology funds lead this year’s list of the top funds, though two non-sector funds are also…

 

19 Year-End Financial and Investing Moves

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   19 Year-End Financial and Investing Moves Actionable steps covering personal finance, estate planning, investing, retirement and taxes that investors should consider taking now before the new year. The Individual Investor’s Guide to Personal Tax Planning 2018 AAII’s annual tax and financial planning guide is…

 

Finding Bargains Among Stocks With Falling Stock Prices

  Finding Bargains Among Stocks With Falling Stock Prices Underperforming stocks may seem unappealing, but the price weakness can turn them into bargains with upside potential. The Essence of the Benjamin Graham Approach A cut-to-the-chase synopsis of Graham’s rules, which were based on buying stocks trading with a margin of safety.   52-Week Highs Perform…

 

Gauging Your Psychological Readiness for Retirement

Revisiting the Risks of Retirement Spending Rules In this update to a 1998 article, we discuss the risks of spending only portfolio income, spending returns or making inflation-adjusted withdrawals. Illustrating the Value of Retirement Accounts Two examples show the considerations to be taken into account when deciding between a taxable account, a traditional IRA and…

 

Common Stock Dividends: What Are They Worth?

Evaluating Dividend Safety With the Free-Cash-Flow Payout Ratio “Cash is king” is a common refrain in investing and investment analysis. Just because a company generates positive earnings doesn’t mean it will succeed. It still needs to generate cash to survive. Thus, whether a company can generate sufficient cash is what matters to stakeholders. Closed-End Bond…