Eight Financial Strategies to Consider During the COVID-19 Shutdown of 2020

By Justin J. Carbonneau The recent declines in the market along with the overall shutdown of the economy may have many investors feeling a little hopeless and paralyzed—all completely normal feelings in times like these. However, periods like this also present opportunities for those who have the self-confidence to look closely at certain parts of their finances and overall financial plan. To that end, I’ve come up with 8 strategies that could improve short- and… Read More

American’s Retirement Dreams Destroyed by Coronavirus Shock

“After a 40-year-long shift from traditional pensions to individual 401(k) retirement accounts, Americans’ financial security is now defenseless against whatever crisis comes along,” according to a recent article in Bloomberg. The article cites a recent research study that found late baby boomers (now 55 to 60 years old) have saved far less in 401(k)-style contribution plans than their older cohorts. “This result was puzzling and perverse,” the article said, adding, “The more time Americans spent… Read More

Nobel Laureate on Solving the ‘Nastiest, Hardest’ Problem in Retirement

A few decades ago, Nobel Prize-winning economist William Sharpe—creator of the Capital Asset Pricing Model (CAPM) and the return metric called the Sharpe ratio—turned his attention to the risk Americans face of potentially running out of money in retirement. This according to a recent article in Barron’s. Sharpe created a computer program that covered 100,000 retirement-income scenarios based on different combinations of life spans and investment returns for a retired couple—which is available in a… Read More

Gambling Not a Great Investment Strategy

Older investors focused on landing fat returns by taking on more risk might be putting their retirement in harm’s way, according to a recent article in The New York Times. Taking on more risk in the hopes of earning bigger gains can not only jeopardize investments but also the lifestyle retirees had been planning for. The article cites comments from several financial advisers regarding how they address this issue with clients. For clients who want… Read More

Dodging a Market Dip on the Way to Retirement

An article in The New York Times addresses the vulnerability investors nearing retirement can feel during times of market turbulence. The article lists some suggested strategies to reduce the negative impact of a potential market downturn: Check your portfolio allocations: Retirees should ask themselves, “Is my allocation to stocks one that my stomach can handle should the market plummet 50 percent?” If not, the article argues, it might be time to think about reducing exposure… Read More

Withdrawal Strategy Suggested by Stanford for Affluent Boomers

An article posted last month in Financial Advisor magazine suggests that financial advisors consider a withdrawal strategy recommended by the Stanford Center on Longevity to “help clients have enough money for the rest of their lives.” In a presentation to the Financial Planning Association’s annual conference in Chicago last month, Steve Vernon (author and consulting research scholar for the Center) said, “I can state with confidence that the vast majority of older workers today in… Read More

Study Shows Retirees Become More Pessimistic About the Market as They Age

A new study shows that as people age, they become more pessimistic about the stock market and the economy as a whole, and actually spend less “just as many can start enjoying their life’s savings,” according to a recent Wall Street Journal article. Study author Matt Fellowes, former chief executive of Morningstar subsidiary HelloWallet, says that as we age “our ability to reliably anticipate the future weakens,” and even people who have saved carefully end… Read More