By: RJ Weiss
If a well diversified portfolio of stocks doesn’t outpace 4.75% over the next 40 years we’re all in trouble. Yes you avoid inflation risk with this strategy, but there is a big opportunity cost for a...
View ArticleBy: Evan
What about other safe investments? What about annuities? Muni bonds (not Cali lol)? etc.
View ArticleBy: RetirementInvestingToday
In my opinion nothing is risk free even from the government. Just ask patriotic UK people who in 1917 gave money to the government as War Loans.
View ArticleBy: Pop
@RJ, Thanks for the comment. Yeah, it just depends on what you’re willing to gamble. I mean, a 93% chance is pretty good! But unfortunately, it’s not like you get to get to retire more than once if...
View ArticleBy: Tracy
Hi Pop…. great advice here. I was one of those planning to retire in the next few years. I am still going to make it thanks to a great employer funded retirement plan and new personal financial habits...
View ArticleBy: Ken
I think it comes down to your risk tolerance. While the market in the last 2 years has been abysmal, someone might can invest 50% of investments in stocks if thier gut ells them it’s ok and they can...
View ArticleBy: Zvi Bodie
Hi Pop: Apparently you have not read my book, Worry Free Investing. You write: “A few economists have argued that retail investors should put all their money in TIPS — Boston University’s Zvi Bodie...
View ArticleBy: Pop
Hi Mr. Bodie, Thanks for the correction. I’ll ask Flexo to strike through it immediately. I haven’t read your book, and must have gotten the wrong impression of your views from an article somewhere....
View ArticleBy: SteveDH
I’m not young, in fact I’m retired, and it bothers me that so many seem to see retirement as a finite event where all other actions somehow stop. I have one of those 95% successful retirement scenarios...
View ArticleBy: Britt
Over the short-term, this might be a good strategy. But just as bubble mania causes people to make irrational decisions about their money, post-Depression grandmothers also made irrational decisions....
View ArticleBy: Evolution Of Wealth
You make a great point with Monte Carlo simulations. The bigger problem with them are outliers. Years like 2008 when you have a big, unpredictable downward swing. This creates an instance where your 7%...
View ArticleBy: Rob Bennett
This article makes points that very much need to be heard. I view today’s dominant model for understanding how stock investing works (the Buy-and-Hold Model) to be truly dangerous stuff for the...
View ArticleBy: Avi
This is an unfortunate example of why stock investing is so risky. You might want to check out what Coca Cola’s real return for the last 40 years was before you place your bet on it for the next 40...
View ArticleBy: Zvi Bodie
I just came across this column by Stuart Fowler in the FTFM section: Avoiding risk is not the way to make money By Stuart Fowler Published: February 14 2010 10:30 | Last updated: February 14 2010 10:30...
View ArticleBy: K Smith
The risk of a TIPS investor is less than that of a muni bond investor and a stock investor only if you buy into the idea that it is impossible for the US government to default on its obligations. Many...
View ArticleBy: Jimbo
Mr Bodie, I have read your book more than once and found it very informative and out of the box thinking. While no one can be sure what style of investing is the best, yours does seem very safe...
View Article7 Steps to Creating a Risk-Free Retirement Plan
Or, how to invest like a grandmother. This is a guest article by Pop. Pop writes about the intersection of behavior, economics, and personal finance at Pop Economics. He writes about investing for a...
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