Retirement Watch Weekly
Is There a Retirement Crisis?
A couple of economists recently published a report arguing that the media and a number of economists overstate the problems Americans will have being financially ready for retirement. They questions several assumptions in their estimates and make some different assumptions in their study. In this link, you can read a summary of their report and […]
Risks of the 401k to IRA Rollover
When people retire with a 401(k) balance or a pension plan, there’s an army of financial salespeople trying to get them to rollover that money to an IRA managed by the financial salespeople or their associates. That can be a good deal, but apparently for many people it isn’t. They aren’t financial sophisticated and get […]
5 Mental Mistakes that Trim Investment Profits
You know about behavioral economics and how it shows that many of us seem hardwired to make decisions about money that are bad for us. Contrary to what economists say, people aren’t rational and profit-maximizing. Here’s a good summary of the five most common mental or thinking traits that lead to bad decisions. Recency effect. […]
Why Are People Holding So Much Cash?
Stock markets and other investments have been on a roll since early 2009. But not many investors have enjoyed the increase. Investors are holding a lot of cash in their portfolios, and they increased cash holdings as markets rose, according to a new study. Why? Mostly because after the financial crisis people don’t trust the […]
Using Social Security Estimates with Caution
You can receive from the Social Security Administration an estimate of your retirement benefits. You can call, wait for an estimate to be mailed, or go online and use Social Security’s calculator. The estimates are helpful in retirement planning. But remember these are only estimates. They are based on a number of assumptions that might […]
The Danger of Collectibles Investing
Antiques, collectibles, and other unconventional investments have done well the last few years. That attracts more people to them. Unfortunately, it takes a lot of knowledge or the help of a very good, honest consultant to do well. The big problem is paying too much because an item is either a fake, inferior quality, or […]
The Father of High Frequency Trading
Fortune tracked down a man, now retired from finance, that it believes is the father of high-frequency trading. HFT is the subject of Michael Lewis’s latest book, Flash Boys, that portrays HFT as being a major negative for most investors. In interviews, he says because of HFT the market is rigged. Many others have disagreed. […]
A Bullish Case from Low Stock Market Volatility
Some people at the Fed leaked a story last week that Fed officials were worried about low market volatility. Volatility is indeed low, indicating that investors are complacent and also that they aren’t making any big bets on the economy or markets. This post makes an interesting case that the Fed leaked this story simply […]
