In 2005, Congress debated giving U.S. workers private savings accounts to invest their Social Security contributions in the stock and bond markets. Sixteen years later, we review how that would have worked out for workers. Topics covered include: How the public and private sectors are both critical for a functioning social security systems Which countries pay the highest social security benefits How have other privatized social security plans worked out around the world How … [Read more...]
398 Plus: Immediate Annuities, Mortality Credits, Leveraged ETFs, and Valuing Pensions
In Plus episode 398, we analyze how much immediate annuity payments have increased as interest rates have risen. We review why payouts on immediate annuities are higher than on a bond ladder. We consider why some leveraged ETFs and ETNs survive and others don't when markets decline. Finally, we look at whether pensions can be considered part of one's net worth, and how to value them. … [Read more...]
244 Plus: Magic Formula Investing, Commodity Trading Advisors, and Social Security as Longevity Insurance
In Plus episode 244 for the week of March 16, 2019, we explore magic formula investing as proposed by Joel Greenblatt in The Little Book that Beats the Market. We discuss commodity trading advisors and analyze one that uses a trend following strategy. Finally, we discuss how Social Security can be viewed as longevity insurance. 244 Plus View and Listen To Other Plus Episodes Audio Download Download the audio file Show Notes Magic Formula Investing The Little Book That Still Beats … [Read more...]
153: Will Social Security Go Bankrupt?
Why Social Security will not collapse and the four actions government can take to make sure it won't. Photo by Michal Grosicki In this episode you'll learn: What does Social Security cost per year and how is it funded. How soon will the Social Security trust funds be depleted. What are the ways to stabilize the Social Security program. How productivity increases will help determine the future of Social Security. Show Notes Scathing New Report Shows Just How Bankrupt … [Read more...]
149: Do You Have Enough To Retire?
How to estimate how long your assets will last in retirement and the steps you can take to take make them last longer. Photo by Morre Christophe In this episode you'll learn: Has a secular bear bond market started.How to determine a bond fund's interest rate risk.How to do a mind the gap analysis to estimate how long retirement assets will last.Why there is not a compelling benefit to adding U.S. small cap stocks to a portfolio in the current market environment. Show … [Read more...]
134 Plus: Recent Bond Performance, Social Security and Retirement Rollovers
This week November 26, 2016 on Money For the Rest of Us Plus we look at how bond funds and ETFs such as the Doubleline Total Return Bond Fund (DBLTX), the Vanguard Total Bond Market ETF (BND) and the iShares 20+ Year Treasury Bond ETF (TLT) have performed in the past month with interest rates rising compared to what we would expect them to do given their durations and yields. We also look at what to consider before rolling over your 401k or 403b defined contribution plan into an individual … [Read more...]
126: Where Federal Money Flows
Why cutting federal spending and trying to lower the national debt reduces household income and spending, potentially causing a recession. Photo by Julie Macey In this episode you'll learn: What does the U.S. federal government spend money on.How big is the U.S. national debt and who owns it.How most people receive more Social Security benefits than they paid into the system.What happens when interest costs becomes a larger portion of the federal budget.What are the … [Read more...]
