Why I Prefer Dividend Income Over Total Return in Retirement

Why I Prefer Dividend Income Over Total Return in Retirement

The one constructive response I received on the article, A Portfolio Strategy for 30-Year Retirements, was the preference for total return versus dividend income. If you haven’t read it, I’d encourage you to do so now as what follows will make much more sense. Before we dive in, let’s first define total return investing. Total return investing is the idea that there is no preference for investment gains, whether via dividends or growth of underlying capital. The thought process here…

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The Personal Part of Personal Finance

The Personal Part of Personal Finance

This week on Twitter, there has been a lot of talk about whether it’s smart to pay off your home or to invest those funds. It evolved into a discussion about whether to use a total return or income-based strategy for retirement planning. The answer is neither and both are right and wrong. You read that correctly. When it comes to retirement planning and financial planning in general, we all have a rational brain and an emotional brain. The rational…

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Selling the Sizzle: Risk-Adjusted Returns

Selling the Sizzle: Risk-Adjusted Returns

Jerry Seinfeld is one of my two favorite comedians. (Mitch Hedberg is the other in case you’re wondering.) He has a great bit about dry cleaning where he says, The whole problem with dry cleaning is that we all believe that this is actually possible. They’re cleaning our clothes, but they’re not getting anything wet. It’s all dry. I know there’s got to be some liquids back there, some fluids that they’re using. There’s no such thing as “dry” cleaning….

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A Portfolio Strategy For 30-Year Retirements

A Portfolio Strategy For 30-Year Retirements

PLEASE NOTE: This is a long post, but I passionately believe that if retirees have any chance of getting things right, they must properly understand all the underlying assumptions they are making in their retirement planning decision process. And because I view the subject(s) of this particular article to be so important, I wanted all the thoughts in one place instead of being spread amongst three or four individual posts – especially since these issues are inseparable in nature. If…

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The Retirement Digest 008

The Retirement Digest 008

NOTE: Sorry for no other posts this week – I’ve been working on an article for the last couple weeks about one of the biggest, yet most overlooked risks in retirement that will hopefully encourage you to think a little differently when planning your retirement. I should have it out next week. In the meantime, enjoy this week’s articles. The Retirement Digest is a collection of articles from around the web that I think members of the RFG community might…

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The Retirement Digest 007

The Retirement Digest 007

The Retirement Digest is a collection of articles from around the web that I think members of the RFG community might find helpful. ***** Hers, His and Ours (humbledollar.com) There is a stark reality facing many retirees upon retirement – this is true for both spouses. This enlightening article offers a look into a few of the struggles as well as how to overcome them. ***** Solving A Bank Heist: Follow The Money (kc-roi.com) I read a 44-page disclosure from…

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Social Security Financial Outlook – 2019 Edition

Social Security Financial Outlook – 2019 Edition

One of my favorite sources of information on retirement is the Center for Retirement Research at Boston College. Last week, they released their Social Security Financial Outlook summary report of the 2019 Trustees Report. I’ve taken the liberty of extracting what I view to be the primary points of their article to share with you – a summary of a summary if you will. Here’s what I thought you might find useful to know: How does this year’s report compare…

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The World is Changing For the Better & Why It Matters To You

The World is Changing For the Better & Why It Matters To You

I wanted to draw your attention to a few graphs, all of which come from OurWorldInData.org via this article, “The short history of global living conditions and why it matters that we know it” by Max Roser. I have a simple question for you at the end. Question to Ponder: Despite “what we think we know” about the world, these are the prevailing trends. For me, this begs the question – “If these are the trends, what do you think…

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Free is Never Free & Thoughts on Discounts

Free is Never Free & Thoughts on Discounts

I’m writing this as I sit in a car dealership awaiting my wife’s vehicle. When we purchased the car, one of the advertised benefits of purchasing the car here was the free “car services” that were thrown in with the purchase of the vehicle. Essentially, free inspections and free oil changes. But, they’re definitely not free services. Because what seems to happen each time you bring the car in is they want to notify you of things that are either…

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The Retirement Digest 006

The Retirement Digest 006

The Retirement Digest is a collection of articles from around the web that I think members of the RFG community might find helpful. ***** Biggest List of Senior Discounts 2019 (theseniorlist.com) This one’s ironic given my post this week, but I couldn’t help sharing it because WOW. I didn’t count them, but there are a ton of discounts available to seniors. Better get used to saying, “Can I have the senior discount?” ***** Your Financial Plan is a Compass, Not…

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