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Portfolio

Why You Need To Be Careful With Bond Funds

Not all investors understand the inverse relationship that exits between bonds and interest rates; the fact is when interest rates rise, bond values go down.  To understand this concept let’s break this down to see how a bond works.  Bonds have a stated maturity and a stated interest rate that they declare when they are issued.  The most common types of bonds today are government and co...
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The Math of Gains and Losses

  Here’s an interesting part of investing that most investors get wrong. In fact, if most investors understood this they probably would fire their broker. It has to do with how much it takes in percentage terms for a portfolio to recoup losses after a market correction. So let’s look at this.  If you claim to be a conservative investor, and can handle a 10% loss, then I would agree ...
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Order of Returns Risks Within an Income Portfolio

One of the elements that greatly magnifies the withdrawal risk is the Order of Returns Principle. When your portfolio has losing years it can affect its ability to last through life expectancy more than anything else. The graphs below illustrate this. What’s interesting to note about this graph is that both portfolios earned 8.03% and both Ron and Barb withdrew the same percentage for incom...
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Should I Delay Taking Social Security Past My Full Retirement Age?

Should I Delay Taking Social Security Past My Full Retirement Age? When deciding at what age to take Social Security, it can be very confusing and there are many things to consider before making this decision.  Let’s take a look at some of the issues that may apply to you. Once again like we did in the previous article on taking Social Security Early, let’s take a look at some important fact...
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Should I Take Social Security Early?

Should I Take Social Security Early? Many people will reach the earliest age that they can take Social Security and wonder, "Should I take it now or should I wait?" What is the right answer? Everyone is different and has a their own situation so let’s take a look at a few of these. Before we get started let's look at a few facts... Your Social Security increases between 5 to 7% fo...
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