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Retirement Digest: Investing in Market Drawdowns

Retirement Digest: Investing in Market Drawdowns

Nick Maggiulli recently posted the best article I’ve read on the topic of being a buyer during this stock market drawdown as he reframes where we’re at today and what this could mean over the next few years. Here is a quote I wanted to share: So, if you think the market recovery will take:* 1 year, then your expected annual return = 50%* 2 years, then your expected annual return = 22%* 3 years, then your expected annual return =…

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5 Actions You Can Take During a Bear Market

5 Actions You Can Take During a Bear Market

Right about now, investors and advisors are kicking themselves for not having sold about two weeks ago. Some are still considering selling. Investors who say the thought hasn’t crossed their mind are probably lying to themselves. It’s easy to say to ourselves, “I KNEW I SHOULD HAVE SOLD!” because hindsight is always 20/20. But the truth is, we didn’t know because we can’t know. That’s truly the toughest part of my job. I live, eat and breathe this stuff and…

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Retirement Digest: All Good Ideas Are Boring

Retirement Digest: All Good Ideas Are Boring

An attorney friend of mine reached out asking me about using universal life insurance with a cash-value component as a retirement savings vehicle. He said a friend of his was being pitched this and his antennae went up that he should ask some questions. I responded with some typical inquiries – general age, whether he is covered by a retirement plan through work, and a variety of other questions to ascertain whether this could even be viewed as an appropriate…

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The Response is Still the Same

The Response is Still the Same

Mark Manson is a writer I admire for the quality of his thinking. In his Monday Newsletter, he wrote the following: Pick Your Poison: Health Crisis or Economic Crisis? – If you quarantine large swaths of the population, now you’ve created another predicament for yourself: commerce grinds to a halt. It’s estimated that 30% of small businesses in China are closed right now. Japan closed all of their schools for March, sending nearly a million teachers home without work. Millions of…

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Your Portfolio Was Built for This

Your Portfolio Was Built for This

SELL! SELL! SELL! This is the typical response recommended by the media right now as they go about trying to make some sense out of things that are unable to be understood, forecasted or responded to. It’s what they do. What should you be doing with your portfolio to account for the coronavirus? If I had a dime for how many times I’ve heard that over the past couple of weeks, I’d already be retired. Seriously though, what should you…

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Retirement Digest: The Wisdom of Warren Buffett

Retirement Digest: The Wisdom of Warren Buffett

It is surprising to me that two years into this blog, I have never written about Warren Buffett. With his most recent shareholder letter out recently, I thought it may be valuable to share a couple quotes from it with a bit of commentary as his letters are full of timeless wisdom. Focus on the Long-Term Over time, Charlie and I expect our equity holdings – as a group – to deliver major gains, albeit in an unpredictable and highly…

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Will Your Family Be Torn Apart After You Pass?

Will Your Family Be Torn Apart After You Pass?

Every parent’s nightmare is that your family will be torn apart over money when you pass. I will let you in on an ironic little secret about the inheritance you hope to leave. Money makes people crazy! If you have not planned appropriately – and sometimes even when you have – it is very possible that your family will be torn apart over dollars and cents and over your “stuff.” Because money makes people crazy. Children who ordinarily get along…

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Retirement Digest: Daily Productivity Worksheet

Retirement Digest: Daily Productivity Worksheet

When we are in grade school, we learn about the scientific principle of cause and effect. We do one thing and we get a result. We do another thing and we get a different result. For some reason, we live our lives as if the world should operate differently than this fundamental of life. If we’re lucky, we know what the highest and best use of our time is, but we rarely use our time in that way. Instead of…

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Rethinking Investment Risk in Retirement

Rethinking Investment Risk in Retirement

Investors love to talk about risk. What’s the downside risk? How can you hedge your risk? How can I evaluate the risks in my portfolio? Should we address investment risk in retirement the same as during the accumulation phase? What about my personal risk tolerance? These days, risk tolerance questionnaires are all the rage and there are companies springing up out of nowhere trying to cash in on this CYA idea. Many of them are even willing to “brand” you…

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The Challenges Facing Retirees Today

The Challenges Facing Retirees Today

Believe it or not, retirement is still a relatively new concept, by historical standards at least. People have only really been “retiring” for about 150 years – back to the time of Chancellor Otto Van Bismarck. In 1883, Chancellor Otto Von Bismarck of Germany had a problem. Marxists were threatening to take control of Europe. To help his countrymen resist their blandishments, Bismarck announced that he would pay a pension to any nonworking German over age 65. Bismarck was no…

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