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Pension Buy-Outs Put Retirement Incomes at Risk

On the back of a recent pick up in performance in auto sales, auto makers are smartly looking to buy out workers’ pensions. Why is this smart? Let’s recap. Pension obligations have grown far larger than most companies could afford with their cash flow. These companies, therefore, have relied upon market performance to make up …

I Have No Idea

I wrote a post on my personal blog this morning talking about how I had no idea what was coming next in the markets. I said things like “stocks haven’t fallen enough to be a screaming bargain and if world GDP slowed down another 2-3%, they would probably be considered expensive” and ” government bonds are …

Downsizing to Traditional Retirement Communities Not on Boomers’ Wish Lists

From MultiHousing News*: A recent study called “The Next Generation: Understanding What the Boomer Consumer Wants from Retirement Living” from Varsity, a marketing company based in Harrisburg, Pa., reveals that “traditional” retirement communities might become a thing of the past for boomers, unless some important changes are made. Interestingly, I am noticing trends as I …

Poor Liability Insurance Coverage – A Gaping Hole in Your Financial Plan

Three for three… Those are the numbers on my most recent clients and whether or not they needed their liability coverage completely revamped. Let’s review the action shall we? Typically, I see coverages of about 300,000 for liability on auto insurance and 500,000 or 300,000 on homeowners’ insurance. Which means per incident, the coverage could …

72T Questions Increasing As More People Choose to “Retire” Early

If you’re like many people, you’re getting sick of working at your job. And instead of continuing to look for a job similar to your last one, you are considering using a combination of: early pensions, early retirement withdrawals, part time jobs and consulting gigs, and low cost living to check out of the corporate rat race early. Why Are …

“Actual” Economics vs Macro, Micro Etc – It’s All in the Mind

Many financial advisors likely feel that if their clients only understood the “fundamentals” of the financial field, they wouldn’t get upset over market ups and downs (what we call “volatility” in the industry. However, the truth is much more complicated in that and a whole field called “behavioral economics” has grown up around the idea …

Low Yields Forcing You to Invest in Risky Assets?

Today’s low yields (low interest rates) have changed the investing landscape. Especially for retirees. Historically, when planning for retirement income, investors could rely on a balanced portfolio with bonds, stocks and Cash. CD’s would lower the risk while adding some interest income. Today this is just not possible. With the Federal Reserve Board keeping short-term interest …