Let me share something with you that’s been bothering me for many years. I’ve been working in the financial services and insurance industry for 21 years, but this experience I have goes back far beyond that. Back to when I was in my 30s. This message is intended for men, but ladies, I hope you [...]
In 1994, William Bengen published an article in the Journal of Financial Planning. He aimed to present his research from the Monte-Carlo Simulations he created, and what an acceptable withdraw rate would be for someone with a retirement horizon of 30 years. Bengen knew that it was dangerous for retirees to assume a withdraw rate [...]
Transparency in the financial world has traditionally been lacking. As information sources have increased, along with it has come more chances to look behind the curtain. The mutual fund industry in America is enormous; most all Americans have or currently do use these products for accumulating funds for retirement and many other uses. Mutual funds [...]
When the Social Security Administration announced that for 2016, 2017, 2018 there would be NO “cost of living adjustment” (COLA) to retirement payments, many considered inflation was under control. The reason for no COLA is simple, and Congress sets the COLA based on the performance of the Consumer Price Index (CPI). The CPI failed to grow [...]
As the man arose, he walked into the kitchen, and as per his usual routine, he glanced at the clock, it was 2:40 AM, earlier than normal by about 3 hours. He knew he had a long day ahead, drive south down state for 3 hours each way to meet with a prospective client about [...]
I have been asked recently how the current volatility of the stock market will affect the interest in annuities. Of course, the obvious answer to avoid instability is to get out of the market, and most people are fearful of that. While the issue of volatility is clear, greed and desire to make more and [...]
If you haven’t read the colossal epic book about WWI, All Quiet on the Western Front, you might want to give it a go. Erich Remarque's novel about the horrors of war and the effort to remain alive while both witnessing and causing indescribable carnage is intense. The book catapults you to that time and [...]
I am a “visual” type thinking person. So, I was thinking of ways to further describe the FIA, knowing that it's a different language. I have spoken this language for the better part of 18 years; realizing that sometimes in the communication of a different language, there is a loss of meaning and or interpretation. [...]
When planning retirement, make sure your money lasts as long as you do! In 1994, amateur economist and investment manager William P. Bengen wrote his famous thesis about withdrawal rates from accumulated funds in calculating retirement income. Here is the link:http://www.retailinvestor.org/pdf/Bengen1.pdf Over the years and due to the financial meltdown of 2008, the amount [...]
There was a time in the not-so-distant past when the "theory of decreasing responsibility" was a viable way of determining how to plan one's retirement. This theory, which formed the nucleus of retirement planning for decades, held that as people get older, their financial responsibilities will decrease. For example, the mortgage will typically be paid [...]
