In Plus episode 512/513, David discusses why he sold his position in the Barings Corporate Investors Fund (MCI). We also compare the yields and tax rules of U.S savings bonds, nominal Treasuries, zero coupon bonds, TIPS, CDs, fixed annuities, and municipal bonds. … [Read more...]
464: More Ways to Lock in Higher Yields in Case Interest Rates Fall
Professional investors and other market participants are lousy at forecasting interest rates. Here are three more options to lock in higher yields today. Topics covered include: The risk of buying long-term bonds and ETFs to benefit from falling yields How volatility drag has impacted a long-term bond ETF like TLT Why interest rates won't go up just because the government issues more bonds How CDs, fixed annuities, and zero-coupon bonds work We compare and contrast the … [Read more...]
407: Worry-Free Retirement Investing
How to use laddered inflation-indexed bonds (i.e., TIPS), CDs, fixed annuities, and fixed index annuities to meet retirement living expenses while worrying less about running out of money. Topics covered include: How individuals can use liability-driven investment strategies Why now is the best opportunity to buy Treasury Inflation Protection Securities in 15 years How to use bond ladders How deferred fixed and deferred variable annuities work How to analyze fixed index … [Read more...]
372 Plus: Model Portfolios History, Performance, and Modified Endowment Contracts
In Plus Episode 372, we look at the purpose of the model portfolios, how they have evolved, and the historical performance. We also answer some member questions about the model portfolio changes in early January to reduce equity REIT exposures and eliminate preferred stocks. Finally, we explore life insurance policies that are classified as modified endowment contracts. … [Read more...]
326: The New Math of Retirement Spending and Investing
How should individuals invest and spend in retirement with interest rates so low, stock valuations high, and inflation uncertain. Why retirement managed payout funds and income replacement funds failed. Topics covered include: How managed payout and income replacement funds compare to immediate annuitiesWhy Vanguard and Fidelity changed the objective of their retiree focused income replacement and managed payout fundsHow fixed annuities workHow retirees should combine annuities with … [Read more...]
306 Plus: Member Profile, Bond Investing, and Emerging Technology
In this Plus episode, we profile a member who is transitioning his portfolio for retirement. We discuss fixed income options, fixed annuities and other challenges with a low interest rate environment. We also look at the viability of investing in individual emerging technology stocks, particularly companies focused on computer vision. … [Read more...]
290 Plus: Dealing with Market Losses, Variable and Fixed Annuities and L-Bonds
In Plus episode 290 for the week of March 12, 2020, we consider whether it is a time to buy or sell given the financial market turmoil, and how to handle the emotions of seeing losses. We profile a member's portfolio and answer her question as to whether she should increase her allocation to a variable annuity. We contrast variable annuities with fixed annuities. Finally, we answer a member's question about investing in L-bonds, a debt security issued by GWG Holdings, Inc. … [Read more...]
MNY032 Plus: More On Annuities
In this week's Money For the Rest of Us Plus episode, I discuss: The difference between variable annuities, fixed annuities, index annuities, deferred income annuities and immediate annuities. Which annuities take advantage of the unique capacities of insurance companies and which don't and why it matters. Insurance companies are not investment geniuses so we should be wary when that is what they are selling. The episode length is 13 minutes. … [Read more...]
