Look Beyond Your Comfort Zone for Investment Gains

When was the last time you looked at a company you never heard of? How about a company whose name sounded somewhat familiar, but you can’t recall why and otherwise you don’t know anything about? If your answer is rarely, never or not in a long while, you’ve got plenty of company. We humans engage…

 

Retirement Readiness is Being Assessed in the Wrong Manner

This week’s AAII Weekly Features highlight these valuable AAII articles: Methods for Valuing a Stock Based on Profitability and Growth: By using different valuation methods, a range can be established for determining whether a stock is cheap or expensive. Retirement Readiness is Being Assessed in the Wrong Manner: No consensus exists on an acceptable risk…

 

Creating and Following a Real Financial Plan

Carl Richards is a certified financial planner, director of investor education for the BAM Alliance, and creator of the weekly Sketch Guy column at The New York Times. He spoke to AAII about the benefits of having an easy-to-follow financial plan. Could you explain what a financial plan should be? Most people have a conceptual…

 

When Should You Begin Collecting Social Security Benefits?

This article originally appeared in the October 2013 issue of the AAII Journal. There are many complex rules governing Social Security benefits. However, four key points can help you make an informed decision about when to claim benefits. To simplify the discussion, several assumptions are made: your Social Security benefits would not be affected by…

 

Buffett on How Earnings and Assets Can Be Misstated

As I said last year, Warren Buffett’s annual letter to Berkshire Hathaway (BRK.B) shareholders is on my must-read list, and I suggest adding it to yours as well. His letters always provide investing insights written in Buffett’s folksy but outspoken manner. This year’s letter was no different. Though the media focused on the what the “Oracle…

 

The Factors to Include on Your Retirement Readiness Checklist

A new study is highly critical of the retirement planning tools available online. The authors, including financial planning expert Harold Evensky, called the advice provided from the majority of these tools “extremely misleading.” We discuss the study in the online version of the March AAII Journal, which will be posted on AAII.com next week. For…

 

9 Guidelines for Retirement Success

This article originally appeared in the May 2014 issue of the AAII Journal. Now that your once-distant dream of retirement is at hand, it can be an unsettling switch from being a saver to being a spender. It means having an entirely new approach to your money. It can be tough regardless of your financial expertise…

 

Nobel Laureate Advocates Allocating by Market Weight

This article originally appeared in the September 2014 issue of the AAII Journal. William “Bill” Sharpe is the STANCO 25 Professor of Finance, Emeritus, at Stanford University, recipient of the 1990 Nobel Prize in Economic Sciences and a co-founder of Financial Engines Inc. He also authors the Retirement Income Scenarios blog (RetirementIncomeScenarios.blogspot.com). He spoke to AAII…

 

How Can You Make Sure You Don’t Run Out of Money in Retirement?

This article originally appeared in the September 2014 issue of the AAII Journal. You’ve spent a lifetime investing and planning for your retirement. Utilizing intelligent cash flow strategies during your retirement will help you enjoy it. What factors do you need to take into account? the need for real, not nominal, cash flow (i.e., an…