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…

 

Projecting an Aging Parent’s Finances

In assisting my mother-in-law with her finances, one of the things I’ve done is to project how long her savings will last. I’m monitoring her income, spending and savings to ensure she is able to live comfortably now and still has enough to cover future potential living and care expenses. Since it may be of…

 

The Different Types of Risk

Last week’s commentary about how tolerance for risk changes with age prompted a few readers to respond. Most of the emails I received focused on defining what risk is. In the world of finance, risk has more than one definition. Risk questionnaires often try to assess a person’s willingness to incur a drop in a…

 

A Do-It-Yourself Approach to Target Date Retirement Investing

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   How Much Should You Have in Equities Until Retirement? For many retirees, running out of money is their biggest worry during their retirement years, ranking above terminal illness or even death. Unfortunately, many of the popular asset allocation strategies suggest going overly conservative once…

 

Keeping Track of Your Portfolio – What to Monitor and When

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Allocating to Manage Risk: A Case Study A follow up to analysis AAII published 20 years ago of a fictional couple’s exposure to downside risk that looked to see what would happen to the couple’s portfolio should financial markets suffer a severe drop. More…

 

Limiting Required Minimum Distribution Costs

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Retirement Withdrawal Calculator A withdrawal rate is a function of how much money you withdraw from your retirement fund each year. But what if you choose the wrong initial rate? If you choose a rate that is too high, you face possible shortfall risk…

 

You Could Spend More Years Being Retired Than Working

There might be a limit on how long humans can live. Jan Vijg, a geneticist at Albert Einstein College of Medicine, published research in the journal Nature putting the upper limit for longevity at 115 years. More precisely, The New York Times quoted him as stating, “Humans will never get older than 115.” Vijg’s conclusion…

 

AAII’s Most-Read Articles for September 2016

Here are the Top 10 articles from AAII.com for September 2016 (based on unique page views):   Why Buy Bonds If Interest Rates Will Rise? Starting a bond ladder creates income now and produces cash flow that can be used to reinvest if and when interest rates do rise. The Top 10 Economic Indicators: What…

 

How Likely Is It You’ll Outlive Your Investment Portfolio?

This week’s AAII Weekly Digest highlights these “must-read” AAII articles: Investing to Avoid the Consequences of Being Wrong Retirees should only risk the savings they don’t need; young investors should allocate as much to stocks as their risk tolerance allows. William “Bill” Bernstein is a neurologist, co-founder of the investment firm Efficient Frontier Advisors and the…