In the last two articles, I discussed how retirees (and others) use bonds as part of a diversified portfolio because of their stabilizing effect in times of stock market volatility. Bonds can also be an excellent source of income and may provide capital gains under some economic scenarios (especially falling interest rates). We’ve also seen … Read more
Suppose you’ve decided to keep a portion of your portfolio in bonds, perhaps with a higher allocation percentage than stocks. In that case, you have another decision: Should you invest in individual bonds or a bond fund? With interest rates at higher levels than they’ve been in many years, some folks (including yours truly) wonder … Read more
The Secure Act 2.0 was finally passed as just one part of a massive funding package by the outgoing congress just before Christmas on December 23, 2022, and signed into law by the president as the Consolidated Appropriations Act of 2023, an omnibus spending bill authorizing roughly $1.7 trillion in new Federal spending (yikes!). You’re … Read more
An important preliminary note: Given what took place in both the stock and bond markets in 2022, I’m starting the new year with a short series of articles about “safe” retirement income and the roles that bonds and other instruments may play in providing it. But from the outset, I want to reiterate some important … Read more
Now that I’ve reached age 70, I’m looking forward to getting just a little older. Why? Because when I reach age 70½, I’ll be eligible to make Qualified Charitable Distributions (QCDs). I first mentioned QCDs on this blog in an article published in December of last year titled ”My Year-End Retirement Stewardship Review and Planning … Read more
I recently read an interesting study on retirement from A.G. Edwards and AgeWave. It was published earlier this year. The study covered a lot of ground and was only partially focused on the financial aspects. You may want to read the study in its entirety, but in this article, I’ll touch on its most significant … Read more
If you read much about retirement finance, you’ll see a lot of hyperbolic rhetoric about “Required Minimum Distributions,” or “RMDs.” You’d think RMDs are going to sneak up on you and devastate your financial plans in retirement. Spoiler alert: they’re probably not. Yes, RMDs will impact your savings, income, and taxes, but not as much … Read more
I have written about the significant changes in the U.S. and the world economies and how they might impact our retirement portfolios. These changes are not all bad (for example, many people think it’s good that the Fed wants to take a more passive role in controlling the U.S. economy—after a round of quantitative tightening, … Read more
I recently received another one: an invitation in the mail to a “free dinner and retirement discussion.” It seems like I’ve been averaging one every few weeks or so. (My wife also receives one every once in a while. So does somebody named “Current Resident” who apparently lives with me who I don’t know.) I’m … Read more
