“The Retirement Digest” 004

“The Retirement Digest” 004

“The Retirement Digest” is a collection of articles from around the web that I think members of the RFG community might find helpful. Sure Things Are Rarely Sure Things (etf.com) Larry Swedroe’s first quarter review of “Sure Things” – how have the gurus done so far? At the start of 2019, I compiled a list of predictions that gurus had made for the upcoming year, along with some items I heard frequently from investors…” Can You Receive Social Security Spousal…

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Why Average Market Returns Mean Nothing

Why Average Market Returns Mean Nothing

David Hultstrom of Financial Architects puts out a great quarterly newsletter for financial advisors (and a great one for investors as well). In the most recent version of his advisor newsletter, he posted the following chart below with some great commentary that I wanted to share with you. The average compound return (i.e. geometric) is 9.75% (red line). Only in 1992 did an annual return round to 10%. In only 5 out of the 93 years was it even within…

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An Easy to Understand Guide to Required Minimum Distributions

An Easy to Understand Guide to Required Minimum Distributions

Despite the fact that Required Minimum Distributions (RMDs) impact everyone above age 70.5 with a tax-deferred investment account balance, there is still a surprising amount of confusion around the subject of RMDs and how to calculate the distribution required. Before I get to the actual calculation, I’ll briefly address some frequently asked questions about RMDs many retirees may be curious about. What is an RMD? This is the mandatory minimum withdrawal that must be taken from tax-deferred retirement accounts starting…

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Finding Your Investing Edge

Finding Your Investing Edge

I’m going to continue my poker theme. Last week, I drew a comparison between poker and your odds of success as an individual versus the best in the world. This time, we’ll discuss how fund managers compete against each other and where you might have an advantage over these fund managers. Let’s say you had the opportunity to walk the floor at the World Series of Poker. The final table is all set, so all that’s left is the best…

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“The Retirement Digest” 003

“The Retirement Digest” 003

“The Retirement Digest” is a collection of articles from around the web that I think members of the RFG community might find helpful. Exercise Makes Us Happier Than Money, Says Science (stylist.co.uk) “The results, published in the journal The Lancet, show that non-active people felt bad for an average of 18 days more than those who regularly worked out.  More compelling, however, was the fact that physically active participants felt just as good as those who didn’t work out, but earned…

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What are your odds?

What are your odds?

Imagine your friend invites you out to play a friendly game of poker. You agree to go, because why not, right? Should be fun! Once you sit down at the table that evening, you find out that the players you’ve just sat down with are the best poker players in the world. They are the stars from the World Series of Poker – each of them accumulating millions of dollars in winnings. Like your chances to win the game? That’s…

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Why I Choose to Focus on Helping Retirees

Why I Choose to Focus on Helping Retirees

Given that I focus exclusively on retirement planning for individuals, I am often asked the simple question, “Why?”. There are three primary reasons: (1) It’s needed. The American College conducted a retirement literacy quiz with over 1,200 Americans age 60-75 with at least $100,000 in household assets (not including their primary residence) and the results were putrid. • Retirement literacy remains low – 74% failed the 38-question retirement literacy quiz!• Roughly 5% of respondents scored a B or higher (80%+).•…

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“The Retirement Digest” 002

“The Retirement Digest” 002

“The Retirement Digest” is a collection of articles from around the web that I think members of the RFG community might find helpful. Ten Years Ago (ftportfolios.com) It’s March 8, 2009. The market’s down 56% from its all-time high, unemployment is over 8% and hurtling toward 10%, it’s just been reported that real GDP dropped at a 6.2% annual rate in Q4 of 2008, and it feels like the world is coming to an end. You’re tired, exhausted from living…

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Investing Tenets That Are Hard to Follow

Investing Tenets That Are Hard to Follow

Putting cash to work rather than waiting for things to “settle down.” Being patient during flat markets. Staying optimistic when the market seems to be burning down around you. Selling out of a winning company or fund that you’ve held for a long time to diversify your risk. Voluntarily recognizing capital gains and paying the associated taxes to de-risk your portfolio. Evaluating your portfolio based on where you stand in relation to your goals rather than comparing it to a…

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Giving Money to Your Children – An Alternative Strategy

Giving Money to Your Children – An Alternative Strategy

There are two times people can give money to their children – at death and during life. Thank you Captain Obvious. But more and more, I hear people saying that they’d like to give the money now rather than at death so they can experience the enjoyment of giving and seeing what a difference it can make in the lives of their children. I’d like to challenge that strategy today. This is not to discourage you from giving to your…

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