Your Returns May Be Anything but Average

One argument underlying the notion of holding risky assets in long-term portfolios is time diversification. Time diversification holds that above-average returns tend to offset below-average returns over a long enough period. It’s based on the concept of reversion to the mean: Eventually periods of low and high returns converge back toward their average. The inherent…

 

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…