The Fixed Income Conundrum

The Fixed Income Conundrum

Here’s where we are today: As I write this, the 10-year Treasury yield stands at about 0.94% and the 30-year Treasury stands at 1.65%. This creates a bit of a conundrum for fixed income investors. Let me explain. The Federal Reserve Board has a long-standing policy they have stated through the years of a target inflation rate of 2%. Whether or not they accomplish this goal, here is what they reaffirmed in 2016: The inflation rate over the longer run…

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Preparing For “What-Ifs”

Preparing For “What-Ifs”

We are now a little more than two months out from the bear market lows. As the swift recovery ensued, I started hearing stories of investors who sold out of their portfolios around DJIA 19,000 “because the market was going lower.” They were right for the blink of an eye. With the market now back above 26,000, when are those investors supposed to get back in? I have to pose the question because getting back in is always the hardest…

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Dividend Bear Markets

Dividend Bear Markets

An astute reader of last week’s blog post, Equities in Retirement: A 30-Year Case Study, asked a great question: “How much of a maximum decline in annual dividend income (based on prior historical experience) should one be prepared for?” In other words, during dividend bear markets, what level of income decline should we expect? The obvious answer is that I do not know because even the worst-case historical event is only the benchmark until something even worse comes along. So,…

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Equities in Retirement: A 30-Year Case Study

Equities in Retirement: A 30-Year Case Study

Whenever I ask soon-to-be retirees what the ultimate goal of investing in retirement is, the most common answer I hear is: I don’t want to run out of money. Pretty straightforward, right? Here’s the problem. When I ask many of those same individuals what the primary objective of their retirement portfolio is, this is the typical response: Preservation of principal. Whether retirees realize this or not, those two goals run almost exactly counter to one another. If your goal is…

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I Wrote My First Book

I Wrote My First Book

This is an exciting time for me. After a few months of writing and editing, I published a book! It’s called: “Medicare Simplified: What Retirees Need to Know About Medicare in 100 Pages or Less” **Note on the image – the book is not that thick as it’s less than 100 pages and can be read in under 2 hours. My goal in writing this book was to curate the most important and relevant information on Medicare into an easy-to-read…

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Life Is Short

Life Is Short

A couple of weeks ago, my step-father passed away. It was unexpected to say the least. He was the husband of my mother for the last 28 years and father to three of my brothers. He was a humble and kind man. He was also a farmer. It’s difficult to talk about my step-dad without mentioning farming because it was his love, his life, and his passion. He won tons of awards for his farming. In fact, he was recognized…

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The Key to Successful Investing

The Key to Successful Investing

The irony of having investment experience is the acute awareness that humility is always right around the corner ready to remind us that we’re not as smart as we think we are. When throwing out our predictions for what the market is going to do next, it is only a matter of time until humility finds us. While I wrote last week that pundits on TV have no career risk, I do, so I tread lightly. I haven’t shown a…

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The Next 20% Move

The Next 20% Move

As if the news cycle wasn’t already stuck in short-term repeat, our lives have entered into a morose version of Groundhog Day and we have no idea when it will end. On Twitter, somebody posted it’s March 76th because that’s what it feels like. Spring is here and instead of barbeques with neighbors, we’re locked in our houses. When each day seems like the last, it’s easy to get stuck in our own short-term repeat. The markets continue to move…

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4 Stages of a Bear Market

4 Stages of a Bear Market

All bull markets must come to an end. Many of the gains of the last few years were abruptly wiped out in just a month’s time. The argument could be made that bear markets are healthy and are sometimes referred to as a feature, not a bug. I’ve come to believe that there are four stages of a bear market, each with their own emotional issues and include at least two decision points that could arise on our journey through…

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10 Charts About Retirement Every Retiree Should See (2020)

10 Charts About Retirement Every Retiree Should See (2020)

As a Retirement Planner, each year I eagerly await the release of J.P. Morgan’s Guide to Retirement. It is essentially a booklet of retirement charts filled with great information impacting retirees. Making it even better, it often highlights things that are regularly overlooked by just about anyone (including professionals) planning for retirement today. With that in mind, I have selected 10 charts that I think everyone transitioning into retirement should see with a little commentary on each. Every chart comes…

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