If you’re like many independent-minded boomers who cut their teeth on the market conditions of the 1990’s, you may harbor serious suspicions about annuity products. Who needs an annuity? With the stock market averaging near double-digit returns in the past, you could easily live off 4%, 5%, even 6% of your portfolio every year, without…
In my earlier post we analyzed when to rebalance your portfolio and discussed the mechanisms for how to rebalance. Now let’s take a contrarian step back and question the entire rebalancing process. Does rebalancing actually pay off in the real world? Should you even bother? William Bernstein: “0.5%” William Bernstein is one of the few…
Rebalancing your portfolio means adjusting the current asset allocation, moving it closer to some previously-chosen target. In theory, rebalancing captures a portion of the profits earned by your winning investments, and reinforces your losing investments so they can shine in their own time. The majority of financial experts advocate some form of rebalancing. And virtually…
I’m often asked where I think the economy or market is headed. Readers of my CNN Money interview, or my recent article on overcoming the fear of stocks, might think I’m especially bullish on stocks. But that’s not the case. I’m bullish on diversification. I like bonds too. As I write this, my allocation to…
Whether your goal is retiring early, building wealth, or just making your dollars go farther — an effort that pays huge dividends is cutting recurring expenses. Here I’m talking about regular, usually monthly, charges such as phone bills, gym memberships, or property insurance. These are important, and insidious, for several reasons: They are often fully…
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