Words to ponder “Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful.” –Warren Buffett “Most of the time common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble … to give way to hope, fear and greed.” –Benjamin Graham “In this business if you’re good, you’re right six times out of ten. You’re never going to be right nine times out of ten.” –Peter Lynch Remember that while they’re sound strategies, diversification, asset allocation, and dollar cost averaging can’t guarantee a profit or eliminate the possibility of loss. All investing involves risk, including the potential loss of principal, and there can be no guarantee...
Continue readingRetirement Income Investing: Beyond Annuities
Retirement Income Investing: Beyond Annuities One of the challenges of investing during retirement is providing for annual income while balancing that need with other considerations, such as liquidity, how long you need your funds to last, your risk tolerance, and anticipated rates of return for various types of investments. Annuities may be seen as a full or partial solution, since they can offer stable income or guaranteed lifetime payments (subject to the claims-paying ability of the issuer). However, they’re not right for everyone. A well-thought-out asset allocation in retirement is essential. While income investments alone are unlikely to meet all your needs, it’s important to understand some of the most common non-annuity investments that can provide income as part of your overall investment strategy. Bonds: retirement’s traditional backbone A bond portfolio can help you address investment goals in multiple ways. Buying individual bonds (which are essentially IOUs) at their...
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