Retirement

Frugality trumps Earnings and Investments in Retirement Preparation

17 years ago
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A recent paper looked at how earnings (e.g., salary level), investment acumen, or propensity to save contributed toward retirement readiness. The abstract states: “very little of this dispersion can be explained by chance differences in individual circumstances largely outside the control of [...]

Bankrupting the Future

17 years ago
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Econbrowser provides a quick peek at how underfunded local governments are with respect to their promised pensions and health benefits.  The scary part is this is during a bull market.  During the next recession these numbers are going to get much worse.  It wouldn’t surpise me if we see a number [...]

Roth IRA Contrarian View

17 years ago
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Lawrence Starr has been hitting the press with his viewpoint that Roth 401Ks are a bad idea for most people. I’m not as big a pessimist as he is because I believe in tax regime diversification. Since most people have much more money in their tax deferred savings than in their tax free savings, I [...]

Trading some future house appreciation for cash now

17 years ago
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While the fees are quite high currently, this is an intriguing concept. Especially if the concept gains traction and some competition arrives in the market place to bring fees down. I suspect there are some situations, where this could make sense. The firm described is at www.rex-inc.com.

Don’t Count on Working in Retirement

17 years ago
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This article is mostly a rehash of how unprepared people are for retirement, but the following paragraph had an interesting statistic. The first premise Ruffenach challenges is the belief that those who wish to will be able to work in retirement. Statistics suggest otherwise. While up to [...]

The Ugliest Word

18 years ago
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A short piece on how dysfunctional our focus on “retirement” can be.  While a new word would be great, in the mean time I’m recommending that we redefine retirement to be “the point in time where earned income is not the driving factor for personal decision making.” Dick Wagner made a related plea [...]

Online Monte Carlo Retirement Planner

18 years ago
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Check out the best free online Monte Carlo simulation I’ve seen.  It is even better than some commercial simulators I’ve used. It allows you to put in individual cash flows and allows a variety of spending policies (e.g., Guyton style). For example, it can support not receiving inflation bumps [...]
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