Tag Archives: Mutual fund

Retirees and Interest Rates

In our ongoing series of risks faced by retirees, we turn our attention to interest rate risk this time. Interest rate risk affects both the investments and the income of retirees. On the investment side, when interest rates rise, bond … Continue reading

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Fighting Inflation in Retirement

Last week we talked about longevity risk, which for retirees basically means outliving your money. Another risk that quietly creeps in during the retirement years is inflation. You may also hear this called “purchasing power risk,” and it essentially means … Continue reading

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Fun with Investment Math

Time for an investment quiz (no worries–this is just one question). You can choose from one of the following two hypothetical mutual funds. The Racy Fund gained 75% in 2010 but lost 45% in 2011. For the two years, its … Continue reading

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Finance Friday: The Naïve Approach for Retirement Investing

A study from earlier this year found that 401k investors sometimes follow what I call a “naïve” investing strategy. These workers evenly divide their 401k money among their mutual fund choices. Thus if a plan has 5 investment choices, a … Continue reading

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Is Cash King in Retirement?

Conventional wisdom says that in retirement, you should take less risk with your investment portfolio, especially the older you get. There is some wisdom there, in a general sense. But as always, a person’s individual circumstances really define whether a … Continue reading

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All Indexes Are Not Created Equal

The virtues of investing in index funds have gotten a lot of good press over the years (including some from yours truly). Yet in our ever competitive American marketplace, new index fund products roll out based on an ever-growing array … Continue reading

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Your New Job in Retirement

If you are already retired (or will retire soon), are you ready for your new job in retirement? I’m talking about you being your family’s retirement income manager. You see, if you’re like many Americans nowadays, this will be your … Continue reading

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