Category Archives: Uncategorized

How Much Will My Retirement Income Cost? Part 2

Understanding how much future spending, or consumption, an investor’s savings can support is critical in planning for retirement. As we discussed in part 1, the S&P STRIDE Index Series can help by providing a framework for estimating the annual income stream available in retirement using the concept of the Generalized Retirement Income Liability or “GRIL” Read more […]

How Much Will My Retirement Income Cost? Part 1

Gaining clarity around the future spending, or consumption, that an investor’s savings can support is critical in planning for retirement. Being armed with information about retirement preparedness can inform one’s decisions about savings rate, expense budget in retirement, and investment selections. A first step towards solving this challenge is to understand how much retirement income Read more […]

Unconventional Sources of Retirement Income

The three pillars of conventional retirement income are social security retirement benefits, pensions from employment, and personal savings. There are, however, other potential sources of retirement income that are not mentioned often enough. These include (a) the cash value of one’s whole life insurance policy, (b) the home equity value of one’s residence, and (c) Read more […]

Quality Over Quantity: China’s Economic Growth Focus in 2018 – Part 1

The Central Economic Work Conference (CEWC) was held in Beijing on 18-20 December, 2017. As the first CEWC after the 19th Party Congress, it set the tone for China’s central government’s economic policies in 2018. They are crucial to the long-term development of the world’s second-largest economy. Highlights of the CEWC (1) High-quality development over Read more […]

The Passive Canon

A “canon” refers to the core texts that constitute the doctrine of a specific discipline.  Different faiths hold certain letters and books as canon.  The same can be said of a body of works that shaped and directed a culture.  The original Ghostbusters is, obviously, a canonic comic film and anyone who suggests otherwise should Read more […]

2017…Among the Sleepiest of Years

If 2016 was unremarkable, 2017 was downright sleepy…at least as far as equity markets were concerned. In 2017, the S&P 500 notched the lowest level of volatility in 27 years. Both dispersion and correlations were among the lowest levels in the same period. This is in spite of a year that was far from lacking Read more […]

Considering Tax Diversification Benefits of Roth Accounts May Be Timely

The S&P 500® was up 22.1% YTD as of Dec. 19, 2017 (including reinvested dividends), and international stocks were generally even more kind to USD investors (S&P Global Ex-U.S. BMI Gross Total Return [USD] was up 26.3% YTD). However, in most types of accounts we do not get to keep gross returns. Capital gains and Read more […]

Vanishing Stocks

The number of stocks listed in the US is falling. Currently there are 3,758 listed stocks, ten years ago there were 4,500 and 20 years ago the number topped 7,400. The total value of the market, as measured by the total market capitalization of the S&P Total Market Index, continues to rise. As of yesterday Read more […]

A Quick Primer on Benchmark Regulation

What Is It? The Benchmark Regulation (BMR) is a key part of the European Union’s (EU’s) response to the LIBOR scandal and the allegations of similar manipulation of foreign exchange and commodity benchmarks.  It is intended to protect investors by requiring greater transparency and stronger governance among firms that: 1) provide, 2) contribute to, or Read more […]

S&P STRIDE Target Date Funds: Making STRIDEs in Evaluating the Performance of Retirement Solutions

Back in the Great Recession of 2008-2009, participants experienced a dramatic stock market decline.  The S&P 500 index had a “peak-to-trough” decline of 51 percent! Coincidentally, many retirees and near-retirees were gaining their initial experience with something called a Qualified Default Investment Alternative (QDIA). The QDIA is a “safe harbor” (Department of Labor Regulation 29 Read more […]