Retirement Watch Weekly
A Changing Tune from Warren Buffett?
Warren Buffett took some heat recently for publicly objecting to Coca-Cola’s new executive pay plan but abstaining from the vote with Berkshire-Hathaway’s shares instead of voting no. He also appears to be changing his tune on a few other issues on which he was once very vocal and political. Read the new interview with Fortune. […]
Why Aren’t There More Value Funds
Even advocates of efficient markets and index funds acknowledge that value stocks perform better over time than the indexes and growth stocks. This isn’t a secret. Yet, investors don’t flock to value stock funds. This essay offers a number of reasons why, but the bottom line is that investors aren’t always rational and don’ always […]
Estimating Longevity
A major mistake in most retirement plans is underestimating how long retirement will last. Most people routinely underestimate the life expectancy for people their age. More importantly, life expectancy varies with income level. The higher your income in your 50s, the longer you are likely to live, and life expectancy has increased more for higher […]
Where Your Medicare Dollars Go
The recent release of Medicare data continues to reveal valuable new information. The latest is that Medicare pays $5 billion annually for ambulance services, more than is paid to cancer doctors. More importantly, a portion of these ambulance payments go to what are essentially taxi services that are transporting patients who can drive themselves or […]
Worst States for Retirement
Some states are better for retirees than others. Each retiree is different, of course, and I’ve long discouraged people from simply going by a list of which states are best and worst for retirement. The features that are most important to you might be different from those preferred by the raters. But ratings and surveys […]
The Law of Unintended Consequences
Any time a policy, especially a government policy, is considered, it is important to consider the second and third level consequences of the proposal. Often, a policy generates some unexpected and unintended negative consequences. Here’s a simple example of school systems banning chocolate milk in their cafeterias. People assume that if chocolate milk is banned […]
Achieving Better Investment Results
Howard Marks of Oaktree Capital has one of the best investment records. In his shareholder letters, he’s frequently willing to reveal some of the steps an investor needs to take to achieve such results. He’s willing to give the advice, because he knows few people will take it. In this shareholder letter, he explains that […]
Kind Words About Variable Annuities
I’ve been among those critical of variable annuities over the years. Many of them have high fees and expenses, plus they convert tax-favored capital gains and dividends into ordinary income. But there’s something different about many variable annuities sold in recent years. After the stock market crash following 1999, insurers have to sell something more […]
