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...]
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...]