Stock buybacks—i.e., a company repurchasing shares of its own stock—have been targets for praise and criticism through the years. So, which are they: good or evil? We agree with The Wall Street Journal columnist Jason Zweig, who once wrote: “Buybacks are neither bad nor good. They are simply a tool. Just as you can use […]
Decoding Stock Buybacks: Balancing Benefits and Risks Read More »
A recent Vanguard report sheds light on the pressing challenges faced by retirees across different income brackets. The findings reveal that lower-income workers allocate a significantly larger portion of their pre-retirement income to meet their daily needs, leaving them with a substantial shortfall in retirement readiness — even when factoring in Social Security benefits. The
Boosting Lower Wage Earners’ Retirement Readiness Read More »
In Part 1 we described why dividend investing—or, stocking up on stocks with a reputation for consistently paying out attractive dividends—may not be an ideal strategy for generating a dependable income stream out of your investment portfolio. Today, we’ll look at why we prefer a total return investment strategy instead of seeking more concentrated dividend
Beyond Dividend Stocks: Embracing Total Return Investing Read More »
There’s a popular perception that “dividend stocks”—i.e., stocks with a reputation for paying out consistent dividends—can deliver decent returns, while also creating a dependable income stream for spending in retirement or elsewhere. But is stocking up on dividend stocks really such a good idea? Building a concentrated position in dividend stocks may appeal at a
Unraveling Dividend Stocks: More Myth Than Magic Read More »
In our last piece, we covered fund management costs. Next, let’s take a step back from the mutual funds, ETFs, or other holdings you decide to invest in. Where do these holdings live—and what does it cost to buy, sell, and hold them? An Account of Your Accounts First, let’s define a few terms:
Unveiling the Hidden Costs: Trading and Holding Investments Read More »
What are your investments really costing you? If you’re not sure, you’re not alone. It’s not like you’re handed a menu of charges to choose from when it’s time to place your order. Even when you know where to look for investment costs, the information can be difficult to digest. Let’s fill in some of
Unveiling the Costs of Your Investments: Fund Management Fees Read More »
After taking a closer look at interest rates in part 1 and inflation in part 2 we come to the heart of the matter: When interest rates, inflation, or both are on the rise, what’s an investor to do? Big picture, we are continuing to deploy the same core principles we use to help people invest across time and through
Navigating Rising Interest Rates and Inflation Read More »
Has rising inflation got you down? In our last piece, “Understanding Interest Rates,” we explored how rising and falling interest rates can impact a healthy economy. Today, let’s add inflation to the conversation. How Do We Measure Inflation? Inflation is the rate at which money loses its purchasing power over time. As you might guess, there
Understanding Inflation: Impact Measurement, and Historical Context Read More »
At its March 15–16 Federal Open Market Committee (FOMC) meeting, the U.S. Federal Reserve raised its federal target funds rate by a quarter point. It was the first increase since December 2018, but it wasn’t a huge surprise. Fed Chair Jerome Powell had already said we should expect as much, with the potential for additional hikes
Understanding Interest Rates Read More »
In planning for retirement, one topic is often top of mind: What if Social Security goes bust? As we covered in a related post, Social Security Planning: A Balancing Act, most of us have been paying into the program our entire working life. We’re counting on receiving some of that money back in retirement. But then there are
Is Social Security Going Bust? Here’s What To Know Read More »