Factoring Sequence Risk into Retirement Planning

Be sure to factor sequence risk into retirement planning.

When building your retirement portfolio, investing in a routine, systematic way can ensure that you purchase assets at random prices over time. So long as the market moves higher in the long run, any temporary declines, or even major corrections, will provide you with the chance to buy assets on sale. The same cannot be… Read More

How Much Do You Need to Save for Retirement?

Geoff Considine

In the financial advisory business, one of the most pressing and controversial topics is how much money people need to save during their working years in order to provide for long-term retirement income.  The research on this topic has evolved quite a lot in recent years, and a recent issue of Money magazine features a… Read More

Target Date Strategies Over The Last Five Years

Geoff Considine

The intent of target date strategies is to provide investors with fully-diversified portfolios that evolve appropriately as investors age.  Target date funds have enjoyed enormous growth over recent years, not least because the Pension Protection Act of 2006 allows employers to direct retirement plan participants into these funds as the default investment option.  Consultancy Casey… Read More

Folio Investing Celebrates Its Target Date Folios’ Five-Year Record of Outperformance

Geoff Considine

Folio Investing’s Successful ETF-Based Alternative to Legacy Target-Date Funds Offers Superior Diversification, Risk Targeting and Flexibility; Firm Seeks Distribution Partner to Broaden Availability Folio Investing announced today that, over the five years since they were brought to market in December 2007, its Target Date Folios have significantly outperformed traditional target-date funds. The Folios have provided both… Read More

Falling ETF Fees and What They Mean

Geoff Considine

Vanguard has just reduced the expense ratios of 24 of its ETFs.  The reductions are fairly substantial.  What I noticed, in particular, is that the reductions include sector-specific ETFs. The Vanguard Energy ETF (VDE), the Vanguard Information Technology ETF (VGT), the Vanguard Telecom ETF (VOX), and the Vanguard Utility ETF (VPU) each now have 0.14%… Read More

Sector Watch: Municipal Bonds

Geoff Considine

Municipal bonds are issued by states and municipalities and typically have tax advantages relative to other fixed income assets.  In general, income from muni bonds is tax exempt at the federal level and at the state level for investors living in the issuing state.  Municipal bonds have historically been favored by investors in high tax… Read More

Saving and Investing for Retirement: Part Three

Geoff Considine

Realities of Investing: Part Three of Our Special Five-Part Series In the various calculations that project retirement portfolio accumulations through time (such as the two discussed in the previous article), there are assumptions about how investors will allocate their savings and how those investments will perform.  In the case of the Fidelity study, no specific… Read More

The End of ‘The Cult of Equity’?

Geoff Considine

One of the defining features of the last twenty years has been a persistent and fairly continuous belief that investing in the stock market was something of a sure road to wealth.  The downturns in the stock market in the aftermath of the Tech bubble and, more recently, in the financial crisis, have shaken investors’… Read More

The Power of Effective Diversification: Part II

Geoff Considine

Last week, I posted an article discussing how diversification is one of the most misunderstood concepts in investing. In today’s post I continue with the second half of this two-part series titled, “The Power of Effective Diversification.” In Part I of this article, I discussed the difference between naive diversification (holding lots of stuff in a portfolio)… Read More