Author Archive
Fixed Income Ladder Revisited
I wrote in an earlier post that people who are at the door step of retirement should fund the early years by setting up a fixed income ladder. Click here to read my previous post on this subject. In this earlier post I talked about how I use bank Certificate of Deposits (CDs) as the […]
When will the Secular Bear Market End?
The US stock market has been in a secular bear market since 2000. It will be difficult to make any money in stocks until this long term bear market ends. So, the question is when will the secular bear market we are currently experiencing end?
What assets should be placed in which retirement accounts
In my previous post I discussed about how I would prioritize my retirement savings. I suggested it would be prudent to invest in retirement accounts over time, with the goal of creating tax diversity. That is, by having funds in tax deferred, tax free, and taxable accounts. In this post I’ll discuss what type of […]
Pay Down Debt or Increase Savings
A friend of mine who is early in his career recently told me that he had finally paid off his car. He wanted to know whether he should use his newly available cash flow to pay down other outstanding debt or use the funds to increase his retirement savings. This is a good question. In […]
Replenishing the First Bucket
In a recent post I discussed the importance of setting up a fixed income ladder as your first bucket of the Buckets Strategy. As a follow up to that concept, I would like to introduce another skill that a retiree managing his own portfolio for income should know. That is when you should sell your […]
Should You Use a Financial Advisor
I am often asked if I use a financial advisor. Financial advisors can be very helpful. In this post I will give my thoughts on whether you should use a financial advisor.
Equity Allocation Revisited
I have written often in this blog how one of the most important investment decisions you must make is selecting your appropriate equity allocation for your retirement portfolio. In my discussions on this topic, I have referenced a simple equity allocation guideline, “100 minus your age,” people can use that I first explained in this […]
A Rules-Based Approach to Retirement Income Withdrawal
The best approach to have an initial retirement income withdrawal rate above the recommended 4% Safe Withdrawal Rate (SWR) (assuming you are willing to periodically adjust your withdrawals when the markets warrant it) is detailed in Ben Stein’s and Phil DeMuth’s 2005 book, Yes, You Can Still Retire Comfortably!: The Baby-Boom Retirement Crisis and How […]
Increasing the Safe Withdrawal Rate, Part III
The third general approach to increasing your Safe Withdrawal Rate (SWR) above the recommended 4% is pretty straight forward. It requires that you be flexible in your spending from year to year. In this approach you increase your withdrawal rate when the financial markets are doing well and you reduce your withdrawal rate when the […]
Increasing the Safe Withdrawal Rate, Part II
In my last post I discussed how the most reliable way that a retiree can increase the Safe Withdrawal Rate (SWR) is to work longer, thereby decreasing the number of years a portfolio must support someone in retirement. In this post I will discuss the one situation where it is possible to have your cake […]
