How to Invest Conservatively for Retirement If you are retiring soon, you might wonder: How conservatively should I invest? Given the sequence of return risk and the other retirement-specific risks, what asset allocation should I have? First, let’s look at a […]
Asset Allocation 5 Years From Retirement What should your asset allocation be five years from retirement? Should you De-Risk your portfolio for retirement? What does a good pre-retirement glidepath look like? Five years from retirement, let’s consider your asset […]
Retirement Planning Guidebook: A Book Review A Text Book for Retirement Income Planning? Accumulation is easy. Have a hefty savings rate and invest consistently and reasonably. Retirement planning is much more difficult than accumulation. Turning accumulated assets back into […]
Asset Drawdown Strategy in Retirement What is the optimal withdrawal strategy for a Retirement Portfolio? You have your portfolio, sure—your stocks and bonds. But what is your retirement strategy for asset withdrawals, and how does that help mitigate the known […]
Debt is Like a “Negative Bond” A mortgage is like a negative bond, and leverage increases risk. Jonathan Clements describes debt as a “negative bond.” He suggests if you have $100,000 in bonds and $100,000 in debt, your net bond […]
Bond Tents for Retirement Asset Allocation Bond tents and Rising Equity Glidepaths are styles of glidepaths. Glidepaths describe the modulation of asset allocation before and after retirement. For example, traditional target-date funds decrease the stock percentage to or through retirement […]
If You Have Won the Game Quit Playing with Money You Really Need A smart doctor once said, “when you’ve won the game quit playing.” I convinced him to add “with the money you need,” but that is a long […]
Breadth, Momentum, and Asset Allocation Around Retirement Lazy, low-cost, broadly diversified ETF investors are momentum investors in disguise. Cap-weighted ETFs (such as VTI or VOO) use a momentum factor. Since they are cap-weighted, the better a stock does, the […]
Guardrails vs Other Withdrawal Strategies I’ve spent some time looking at withdrawal strategies during the spend-down phase of retirement. The planning software allows me to model several versions, including Guardrails, Floor and Ceiling, and also let future spending be […]