I’ve mentioned in several previous posts that the anxiety about 401(k) balances has been largely overstated, in part because of the beneficial effects of ongoing contributions and diversified portfolios. This point has come across as Pollyanna-ish to some of you, … Read more
Yearly Archives: 2009
Paul A. Samuelson, who died December 13 at age 94, was rightly remembered as a brilliant educator, as author of the best-selling economics textbook ever, and as the second recipient of the Nobel Prize in Economic Sciences. Professor Samuelson, the … Read more
Every year, many investors find themselves “buying a distribution” and incurring liabilities that could have been avoided or at least deferred.
Tax law requires that realized gains in a portfolio be distributed at least annually, typically in December. If you’re … Read more
The issues aren’t quite the same as those one faces when considering the deepest aspects of personal faith and religious doctrine, but a “Roth conversion” can pose some difficult issues for investors nonetheless. And we’re going to hear much more … Read more
I’m a little tired of reading about how “buy and hold” is dead, and diversification doesn’t work, and how “target-date funds don’t work,” and that there was too much risk, especially for pre-retirees, in these balanced funds. These stories seem … Read more
Should you invest differently given the impending retirement of tens of millions of baby boomers? This is a question I’ve received from advisors and investors in recent weeks, and one which, quite frankly, I’ve given little thought to throughout the … Read more
For 35 years I’ve carried a quotation in my wallet. More precisely, I’ve moved the quotation, clipped from a now-defunct newspaper, from wallet to wallet to wallet over the decades.
The quotation is from Willa Cather’s “O Pioneers”:
“There are … Read more
One of our readers recently asked about Vanguard’s view on 401(k) loans.
As you might know if you’ve poked around Vanguard.com, we generally frown upon retirement plan loans, to put it mildly. In fact, Vanguard’s intranet for employees recently featured … Read more
As Americans, we’re accustomed to having options. There’s always another answer, another solution, another way to lick a problem. (Sometimes, though, I think that’s how we got ourselves into the mess we’re in right now. Don’t have the money? Charge … Read more
Retirement … retirement … retirement. Most of us are painfully aware that the responsibility for providing for ourselves in retirement rests squarely on our own shoulders. If we didn’t fully appreciate this sobering situation before, we certainly do now.
Retirement … Read more