If we plot these 2 risks on a matrix then we would say there are 4 potential outcomes: 1) High market returns with high longevity (awesome), 2) High market returns with low longevity (bummer), 3) Low market returns with low longevity (rats) and lastly 4) Low market returns with high longevity (uh oh). Continue reading
St. Patrick, the apostle of Ireland, is one of the most well known and popular Catholic saints. Of course, he wasn’t actually Irish and his birth name wasn’t Patrick! Maewyn Succat was born to Calpurnius and Conchessa, a Roman couple who lived in Britain overseeing the colonies, according to Catholic Online.1 Take this brief quiz to learn more about St. Patrick and the holiday held in his honor.
As a CERTIFIED FINANCIAL PLANNERTM, I have always appreciated the irony in this quote by Mike Tyson.
Don’t get me wrong; I am a big believer in planning especially when it is flexible and adaptive to change, but I feel our industry has turned a good tool into a bad product. In the following article I intend to go over some of the potential limitations of a financial plan and why adaptive planning is important in today’s increasingly complex environment.
Managing risk in an increasingly volatile & expensive marketplace
Investors today are faced with the task of choosing from a wide variety of strategies when seeking to invest their money. Advisors and institutions are increasingly concerned that the buy-and-hold strategies employed successfully in the past may not work well going forward. The traditional asset allocation of 60% in domestic equities and 40% in domestic bonds and, apart from a little rebalancing, holding these positions indefinitely appears increasingly archaic.With high equity and fixed income valuations and low corporate earnings expectations combined with rising interest rate forecasts; relying on financial markets to deliver historical average returns increases the risk that clients will not be able to achieve their financial goals. If you don’t regularly compensate for changing market conditions, you are overlooking the fine print of every investment advertisement that says, “past performance is not an indicator of future results”. Continue reading
Investing for your retirement can be a scary process. With all of the attention given to financial markets, it’s no surprise that one would want to escape the noise and settle for a “guaranteed withdrawal” or a “minimum return”. The truth is that there are no perfect investments; they all have their benefits and weaknesses. Annuities can help guarantee an income you can’t outlive but at what cost? They are complex structures that are often misunderstood by both the buyer AND the seller. Continue reading