Retirement Watch Weekly
How Leveraged ETFs Work
I’ve pointed out from time to time that ETFs, especially leveraged ETFs, don’t work the way many investors expect or think they will. Another example of that is the performance of some leveraged natural gas ETFs from Direxion. With index funds, investors generally are used to the idea that their returns won’t exactly match an […]
Lower Risk = Higher Returns
One of our enduring themes at Retirement Watch is that investors need to manage risks and they’ll earn higher return long-term if they take lower risks. The academic world finally is catching up with this thinking, and it’s moving fairly rapidly into the professional investment world. Take a look at this paper from GMO, a […]
Little-Noticed Qualities of ETFs
Exchange-traded funds are perhaps the fastest-growing investment innovation ever. Assets rolled into them in recent years, and there were some forecasts for a while that they would wipe out traditional mutual funds and other forms of investing. That’s not likely to happen. While ETFs have many good features, there are some negative features and potential […]
The New Name for Annuities
An immediate annuity is a good part of many retirement plans. It provides guaranteed income for life, ensuring you won’t outlive all your money and will have a minimum income, in addition to Social Security. Some economists discuss a new reason to buy annuities. They call it dementia insurance. Everyone, as he or she ages, […]
Reconsidering Living Wills
A good estate plan includes a lot more than will. Among the documents to be included are medical care documents. The traditional document is a living will. But I’ve downplayed the importance of living wills for years. A better document is the medical care proxy or power of attorney. There are a number of problems […]
More Retirement Mistakes to Avoid
There are more than five retirement mistakes to avoid. Christine Benz of Morningstar added to the five mistakes I linked to in the previous post. Again, these are refreshers of issues we discussed in detail in our past visits in Retirement Watch and will discuss in detail in the future. Read Benz’s capsules here. 2. Failing […]
Five Common Retirement Mistakes
Most people get at least some aspect of retirement wrong. The key mistakes are made with some frequency. Your retirement will improve if you focus on avoiding common mistakes. Christine Benz of Morningstar recently wrote a post on five key retirement mistakes to avoid. These are summaries of themes we’ve addressed in Retirement Watch many […]
Saving Taxes on Required Distributions
Taxes take their toll on IRAs. There are strong incentives to pack money into IRAs and other qualified retirement plans during the accumulation years. Yet, there’s a downside. In the distribution years the taxes can be high. Think of the taxes as the mortgage on your IRA. The government lent you money during the accumulation […]
