Investment Planning Topics
Over-valued Stock Market, What Should an Investor Do?
Today’s investment markets are extremely difficult. Safe fixed-income assets pay near zero interest and the stock market is at an historically high valuation. So what is a conservative investor to do, especially someone who is retired or is nearing retirement?
REVISITING YOUR RISK TOLERANCE
I have been reading in my investor newsletters as well as several other authoritative sources that the markets, especially the US stock market are, at present, extremely overvalued. Some of these sources presented data that, they believe, clearly indicate we are in the final stages of a “market melt up,” similar to the the tech […]
Closing the Retail Investor Performance Gap
It is pretty well documented that the average retail stock market investor does not obtain the same long-term results as the broad market indexes. Here is a link to just one article titled, “Why Average Investors Earn Below Average Market Returns,” that discusses why retail stock investors do not replicate long term market returns. The […]
Our Daily Life in The Bahamas
It has been awhile since I have added a post to this blog. I have no good excuses except laziness and the fact there are so many activities here in Hope Town on Elbow Cay that I have not had made time to add a post. This post will summarize our activities the last 3 months.
Return to the Abacos
Earlier this month we arrived back in the Bahamas. We keep our sailboat, Satisfaction, on land at Green Turtle Cay, another cay in the Abacos about 20 miles away from Hope Town. It takes 2 to 3 exhausting days to get our boat set up for living after the summer hurricane season. Fortunately, the Abaco […]
End of Summer 2014
It is very exhausting traveling around the country making short stops to visit friends and family. We are constantly packing and unpacking. I don’t recommend this type of traveling. However, since we are between boats and we wanted to see a lot of family and friends, it is something we have to do this summer.
Bad Weather in the Abacos
Since the New Year began we have been trapped in Hopetown Harbour on Elbow Cay due to bad weather. We had planned to go on an extended cruise to some remote islands around the Abacos. Bad weather has caused us to delay this plan.
Updated Asset Allocation
Recently I got a question from a reader who was nearing retirement about fixed income ladders. Our back and forth correspondence inevitably got into asset allocation. Since I had recently fine-tuned our own asset allocation, I thought I might present here how our financial assets are currently positioned.
The Biggest Financial Surprise in Retirement that I did not Expect before Retirement
One reader recently asked a question, “What was the biggest financial surprise in retirement?” You might guess that my answer might be the high costs of health care. But I had done a lot of research concerning health insurance before I retired, so I knew all the options and costs associated with this expense.
Reverting to the Mean
You have probably heard the phrase “Reverting to the Mean” before, but what does it really mean in the investment world? According to Investopedia, ‘Mean Reversion’ theory suggests that prices and returns eventually move back towards their mean or average. This mean or average can be the historical average of the price or return or […]
