The Problem with Market Timing… and other bits

The Problem with Market Timing – Rick Ferri presents his latest article on market timing. We like to read everything that Mr. Ferri offers. And perhaps, you should too. 😉   Successful market timing requires two correct decisions: when to get out and when to get back in. Guessing right once is a 50/50 proposition. Guessing right twice drops the odds to only 25 percent. One wrong guess and you shoot yourself in one foot; two wrong guesses and you shoot yourself in both feet. This is what makes market timing so difficult…

What Will You Do When You’re Retired? Some people are really off-put by the idea of retiring, especially retiring early. They’re self-worth may be wrapped up in the careers. So what does retirement mean to you? For some people, retirement might just mean bigger helpings of the usual leisure activities. And perhaps for some, as an antidote to years of stressful work life, that will be good enough. After decades of getting up to an alarm clock, commuting, dealing with schedules, agendas, priorities, goals and objectives — all set by somebody else, you might need a good long break, with nothing much to think about. But, in my experience, that period of unadulterated leisure eventually ends. Most people will need more out of retirement than pure leisure. Here, then, are the elements I believe make for a truly happy and satisfying retirement…

 Should I Invest in Bonds Even Though I Might Lose Money? For most people, I think their investment portfolios should consist of a reasonable mixture of stocks and bonds, and perhaps some real estate investment trusts. All of these investments ought to be via index mutual funds. Most people lack the time or desire to closely monitor their investment portfolios. When markets are climbing, people often shun bonds and funnel all of their money into stock funds. Ms. Friedberg discusses the merits and pitfalls of such an investing approach here. She points out that you might want to “…et an allocation for your portfolio, in line with your risk tolerance, and stick with that asset allocation through thick and thin. If your fairly risk tolerant and young, you might only want 20 percent of your total investment portfolio invested in bond assets…” Click the link above to read the rest of the article.

 Retirement Savings Fears Grip Americans: “I Don’t Have Enough” A common concern amongst many retirees and potential retirees is “Do I have enough money to live on for the rest of my life?” In reality, it’s nearly impossible to accurately answer that question; we don’t know what the future holds for us. Many people once counted on a triad of support for retirement – Social Security, personal savings, and employer-sponsored pensions. Yet in the wake of the Great Recession and a long stretch of high unemployment and stagnant wages, the once-dependable foundation has been crumbling. An article in Yahoo Finance takes a close look at this concern. Read the rest of the article to see what they suggest.

Homeownership, reverse mortgages and death recently received the followed question from one of their readers: My father has a reverse mortgage on his home. When the time comes that he eventually passes away, does the mortgage company require that the balance of the loan be repaid? Or do they take control of the property? The value of properties in his neighborhood has increased since he took the reverse mortgage. This is a fairly common issue that many people may have to deal with at some point in their life.



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