Portfolio Solutions Blog
The second of a two-part blog series. Read Part I here.
What can you do to avoid falling victim to the temptations of the The 7 Financial Sins in Retirement? Follow the G.R.A.N.D.P.A. Rules to atone for them.
Get a plan.
A plan is essential for a successful retirement. Mapping out everything from where to live to everyday...Read More »
The first of a two-part blog series
Since antiquity, humans have consulted memorable enumerations to help guide their behavior. One of the oldest and most famous is the seven deadly sins – made popular in art, literature and pop culture, from Dante’s Divine Comedy to the movie Seven. What makes them so unforgettable and effective is that they are meant to serve as directions down the road to eternal damnation.
The seven deadly sins are also known as the capital vices. Understanding how they have become enrooted in people’s psyches can be helpful...Read More »
Married couples are expected to share everything – money, household chores, even each other’s personal thoughts.
In retirement, couples typically combine their savings into one investment portfolio to help fund their financial goals. Unfortunately, they do not always share the responsibility and investment knowledge needed to properly manage that portfolio. One partner may be disinterested in all things financial. Or, one partner may feel it dutiful to manage their investments on his or her own.
If you’re solely in charge of investing, your spouse could be dangerously...Read More »
Portfolio rebalancing is commonly mentioned in the financial media and among investors. Do you think you could explain it at a cocktail party? If you try, expect odd looks as you explain a strategy of selling some of your best performing assets and buying more of your underperforming assets. Rebalancing may seem counterintuitive, but it is an unemotional way of restoring the specific asset allocation designed for your desired level of risk and long-term financial goals.
Tony Watson, Chief Investment Officer at Portfolio Solutions®, helps you explore the topic of portfolio...Read More »
“The question is, when is active management good?
The answer is ‘Never.’”
–Eugene Fama, Morningstar ETF Conference
on September 18, 2014
English philosopher Thomas Hobbes suggested that good and evil are relative, depending on what an individual seeks and avoids. In other words, an act can be good in some circumstances but evil in other circumstances.
The same principle can apply to your portfolio when deciding between...Read More »
Parents are responsible for helping their children make smart decisions. In several American families, those roles reverse later in life when adult children aid their elderly parents whose intellectual abilities have declined.
According to the Alzheimer’s Association, someone in the United States develops Alzheimer’s disease every 67 seconds. The disease affects more than 5 million Americans.
Severe mental degeneration in older adults is commonly known as dementia, of which Alzheimer’s...Read More »
Greek mythology tells us that Icarus flew too close to the sun on wings made of feathers and wax. During Icarus’ escape from Crete, the heat from the sun melted the wax holding his wings together, sending him plummeting into the sea where he drowns.
The story of Icarus is an allegory for the danger of hubris. Investors ready to fly into retirement should beware the hubris of trying to live off of only the income yielded from their assets to avoid touching their accumulated principal.
As a retirement investor,...Read More »