When reviewing investment alternatives, average annualized returns are important, but they don’t tell the whole story. The sequence of returns matter as well. And as we’ll see, while they can have an impact when accumulating savings, their effects can be more dramatic for portfolios in distribution, such as during retirement. [Read more…] about Sequence of Returns – A Key Aspect of Investment Performance
When Chrystal and I got married, I soon realized there were some activities I thought I had long mastered but had actually been doing wrong. A case in point was loading the dishwasher. B.C. (Before Chrystal), I thought that if the dishes came out clean, the dishwasher had been properly loaded. After we got married, I found there was another criteria just as important as dish cleanliness – Her satisfaction that it had been loaded correctly. [Read more…] about Washing Dishes and Retirement Withdrawals
Thinking about taking out a mortgage or auto loan? Concerned about identity theft? Reviewing your credit report on a regular basis can help ensure you qualify for the best interest rate and that no one is taking out credit cards in your name. And if you are considering a loan, it would be good to know your credit score as well. Here are some of the best resources I’ve found to help research your credit. [Read more…] about Resources to Research Your Credit
In a Nutshell
- In a turbulent year for many asset classes, all managed to post positive gains.
- U.S. Stocks finish the year strongly and in a leadership position. Stock prices surged into the end of the year on the expectation that companies will be more profitable with a Republican controlled government.
- The U.S. dollar strengthened over the course of the quarter as the Federal Reserve decided to raise interest rates and talked of 3 more increases in 2017.
- Assets negatively influenced by rising interest rates, such as Bonds and Real Estate, struggled during the quarter, continuing a trend that began in late summer.