Retirees face two big challenges. The first is how to invest their retirement assets. The second is determining how much they can withdraw each year from their retirement portfolios. What many retirees don’t realize is these challenges can be greatly reduced by paying for essential retirement expenses from guaranteed income sources. Guaranteed income sources include Social Security, pension plans, and annuities. Surprisingly, only about 10% of retirees partially fund their retirement … [Read more...]
257: It’s Not Just Wealth That Compounds
How the power of compounding applies not only to wealth, but influence, expertise, and creativity. How non-monetary investments can lead to greater monetary wealth and satisfaction. In this episode you’ll learn: Why the rule of 72 and the power of compounding are hindered by portfolio losses.Why the sequence of returns impacts investment performance, but also our expectations.How what we experience in the world is made up of separate glimpses and events.What are non-monetary things … [Read more...]
236: How Investors Cope With Radical Uncertainty
How heuristics, filters and reasonable stories help us cope with radical uncertainty and have the courage to make investment decisions. Photo by Tom Grimbert In this episode you’ll learn: Strategies for coping with uncertainty.How to avoid being caught up in a bubble or mania.Why even central banks need a coping strategy.How money helps hedge against an uncertain future. Show Notes Centralverse.org The End of Alchemy: Money, Banking, and the Future of the Global Economy by … [Read more...]
159: What You Need To Know About Volatility
What is volatility, what determines it and how to invest in it. But should you? Photo by Jamie Street In this episode you’ll learn: Why extreme events undermine the average. What is the VIX volatility index. Why the tightening of credit conditions contributes to higher volatility for stocks and bonds. How the demand to sell volatility is keeping volatility low. What to consider when investing in VIX. To learn more about investing in VIX ETFs, check out this helpful … [Read more...]
158: How To Invest Like A Cockroach
How reserves, slack and simple rules of thumb help us deal with radical uncertainty. Why the next financial crisis is unlikely to be like the last one. Photo by Ian Jacobs In this episode you’ll learn: Why the world can't be solved but has to be lived. How slack and following rules of thumb can help us deal with radical uncertainty What are water rights. What is an emergent phenomena. How to invest like a cockroach. Show Notes The End of Theory: Financial Crisis, … [Read more...]
145: People Like Us Invest Like This
Our view of the world dictates how we should and should not invest. In this episode you'll learn: Why financial markets are getting more risky and unpredictable. Why the economy and financial markets are not simple machines that can be controlled. How to invest in a ceaselessly creative, radically unpredictable world. Why we could be experiencing a regime when it comes to indexing and ETFs that might mean using non-indexing strategies. Show Notes Uncertainty - … [Read more...]
100: Navigating a Negative Carry World
What Harrison Ford can teach you about investing and living in a radically unpredictable, low investment return world. Photo by Fortune Live Media In this episode you'll learn: What is the primary narrative driving markets today.What are the two things that never change with markets.What is positive and negative carry.Why central banks implement negative interest rates.How low are interest rates around the world.How do we invest and live in a radically unpredictable, negative carry … [Read more...]
