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...]
316: Paper, Rocks, or Digits—What Makes the Best Money
What are the elements of a successful monetary system. Source: Bartek.cieslak at Polish Wikipedia. Edited and captioned. Topics covered include: The stone currency of YapThe fiat currency of ancient ChinaWhy money requires trust, accounting, and tokensWhy too much money can lead to inflation and too little to deflationWhy the best money is useless other than as money Show Notes The island of stone money : Uap of the Carolines by William Henry Furness The Gold … [Read more...]
312: What the Federal Reserve’s New Policies Mean For Your Finances
The Federal Reserve just updated its policy tools. What impact could that have on inflation, interest rates and your investments. Topics covered include: Why is the Federal Reserve more transparent in its communication than it used to be.What are the Federal Reserve's Congressionally mandated goals.What are four economic developments that has caused lower inflation and motivated the Fed to adjust its strategy for achieving its goals.Why inflation could be higher than the Fed's 2% … [Read more...]
309: Investments to Fight Financial Repression
What are some investments that can generate a cash yield greater than inflation in an era when central bank policies keep government bond yields lower than the inflation rate. Topics covered include: How low are interest rates around the worldWhat have inflation rates been and what causes inflation and deflationWhat is financial impressionWhy are central banks keeping short-term interest rates so lowWhat determines interest ratesHow I-bonds workWhy active bond mutual funds can be … [Read more...]
287: What Causes Hyperinflation and How To Prepare For It
What factors lead to hyperinflation, why it is so devastating, how hyperinflation can be overcome, and what can individuals do to be prepared for hyperinflation. Source: Bundesarchiv, Bild 102-00238 / Pahl, Georg / CC-BY-SA 3.0. Cropped and captioned. Topics covered include: What causes inflation and how do central banks manage it.How the causes of hyperinflation differ from more normal levels of inflation.What is the biggest challenge of living in a country with hyperinflation.How … [Read more...]
272: Is Inflation Measured Wrong?
Why some analysts believe the Consumer Price Index formula understates inflation while others believe the CPI formula overstates inflation. What really matters to us individually when it comes to inflation. In this podcast episode you’ll learn: What is inflation and what causes it.How is the Consumer Price Index calculated and how has the CPI formula changed over time.What are examples of different CPI measures?Why do some analysts believe U.S. inflation is higher than … [Read more...]
242 Plus: Alternative Inflation Measures, Stock Buybacks and Retirement Spending
In Plus episode 242 for the week of March 2, 2019 we look at how U.S. inflation rates are calculated differently now than in 1990 and 1980, resulting in lower reported inflation. We review the impact of stock buybacks on earnings per share growth and how that can impact stock returns. We explore how corporate debt balances can serve as a constraint to elevated stock buyback levels. Finally, we explore why we need flexibility in terms of our retirement spending given changing investment … [Read more...]
Is A Dollar Collapse Coming?
Will stagflation cause the dollar to crash and be a bottomless pit when the next recession hits? That is what Peter Schiff is predicting. We look at where he is right and where he seems to be off the mark when it comes to the U.S. economy and a dollar collapse. In this episode you’ll learn: Is an economic recession overdue? Why running ongoing trade deficits leads to higher private sector debt balances. Why interest rates and savings is not too low. Why the U.S. … [Read more...]
190: How To Keep Up With Inflation
What investments are best for maintaining purchasing power relative to inflation. Using the pencil as an example, how inflationary and deflationary forces work together over decades to determine the price of product. Photo by Sy In this episode you’ll learn: What were some reasons for the great inflation during the 1970s.How productivity increases and new technology contribute to deflationary pressures.How quality improvements factors into inflation calculations.How … [Read more...]
162: Is Inflation A Good Thing?
What causes inflation and why do central banks allow it to persist instead of having a 0% inflation target. Photo by Aaron Burden In this episode you’ll learn: How inflation erodes purchasing power over time.How money creation by banks causes inflation.What is the non accelerating inflation rate of unemployment.How shorter-term rates influence longer-term rates.Why central banks have inflation targets. Show Notes Did Quantitative Easing Work? - Federal Reserve Bank of … [Read more...]
