Should You Undo Your 2010 Roth IRA Conversion?
Last year (2010) presented a unique opportunity for even high income earners to convert their traditional IRA or 401(k) account to a Roth IRA. I strongly considered doing that for our IRAs but after running some numbers, I decided against it. Many others pulled the trigger on the conversion. Subsequent economic conditions may have created reasons for some to “undo” their Roth IRA conversion.
A 15 Year Bear Market For Stocks?
September 26, 2011 by MJP
Filed under Investing for Retirement
There have been lots of predictions that the surge in baby boomer retirements will have a substantial negative impact on the stock market. The theory is that when we retire, we will sell our extensive stock holdings to (a) reduce risk and (b) generate a more stable retirement income. More recently, some economists at the Federal Reserve Bank of San Francisco performed some detailed analysis of the baby boomer retirement effect and made their own predictions. You should definitely read it.
Learn How Not To Invest
September 17, 2011 by MJP
Filed under Investing for Retirement
So much of retirement planning and investing is dependent on understanding human behavior, particularly your own. When your planning and investment decisions are infected by emotion, impulse, or other bad behaviors, your retirement plan can go awry in a hurry. Because of this, I enjoy reading about the psychological aspects of personal finance. I recently concluded a series of articles published on the Psy-Fi blog. Each of the articles explored a common theme about investing: First, learn how not to invest. Second, do the opposite.
After Another Market Crash – Will You Change Your Retirement Plan?
August 9, 2011 by MJP
Filed under Investing for Retirement
The “new” stock market does not like hopeful retirees. We must accept that. What happened last week and yesterday (Aug 
is precisely the reason why I do not trust the equity markets to provide for our “must have” income in retirement. It is also the reason why I created the Failsafe Retirement Plan and use it myself. So what will you do in response to this most recent negative market move? Nothing? Just add yet more years to your “I can’t retire yet” plan?
Big Stock Market Move on Monday?
July 30, 2011 by MJP
Filed under Investing for Retirement
It appears that the House, Senate, and White House are very close to a compromise deal on raising the debt limit. What will this mean for the markets on Monday? I have some thoughts for your consideration.
Second Quarter Net Worth and Investment Results
July 17, 2011 by MJP
Filed under Investing for Retirement
I’m a little late with our quarterly net worth review. I was distracted by a graduations, a car purchase, family moving in, and lake house reunions. These were all good things (except for the big cash outlay for the car). That’s all behind us so let’s get to the numbers.
Market Timing and Your Retirement Nest Egg
July 14, 2011 by MJP
Filed under Investing for Retirement
I am primarily a “set and forget” retirement investor. I carefully allocate our investments among asset classes that are not correlated. This creates a “couch potato” or lazy man portfolio that should perform decently except during “black swan” market conditions in which everything falls. There are many investors who think differently. They are wrong.
Reallocating to a Real Asset Return Fund
April 27, 2011 by MJP
Filed under 401(k) Plans
I made a re-allocation move yesterday to a real asset return fund inside our 401k plan. I transferred money that I had been accumulating in a stable value return fund. I intend to use this money eventually to buy more TIPS for our guaranteed retirement income plan but the time just isn’t right for that now. Read more
Further Adjustments to Our Retirement Risk Profile
February 21, 2011 by MJP
Filed under Investing for Retirement
Our core retirement portfolio holdings have delivered some nice gains over the last six months. Unfortunately, world events are creating a greater risk of another significant market decline. Even if the economy itself remains relatively stable, increasing oil and other commodity prices may create such fear that investors will hit the “PANIC SELL” button in large numbers. I can’t allow a collective market freak-out to cause us to lose all of our recent gains. Read more
New Mutual Funds for Fighting Inflation
February 17, 2011 by MJP
Filed under Investing for Retirement
The Fed would have us believe that inflation is under control and will remain that way. World food prices have a different idea and even Mr. Bernanke acknowledges that inflation is now impacting emerging markets in a big way. So it stands to reason that mutual fund companies would introduce more products to address the inflation concern. Read more
