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Target-Date Funds a passing fad? Problems and solutions to using TDFs as a 401(k) default or option
In a nutshell Since target date funds (TDFs) became available as a permissible default or an option for 401(k) accounts, their popularity has been exploding, with predictions that within a decade 50% of 401(k) funds will be in TDFs. But some are raising valid concerns about these supposed “one decision” “low/no maintenance” funds. Given the […]
Hot Off the Web- August 13, 2012
Topics: Passive beats active, don’t die intestate, control: risk-level/asset-allocation and rebalancing, SS delayed-retirement credits, Canadian housing to fall? US housing up- but on the rebound? no pension relief to Canada’s corporations, spending in retirement, some CPP recipient more equal than others, no Paulson subprime mortgage related Goldman charges, StanChart villains- the lawyers? sell gold? backlash […]
Hot Off the Web- August 6, 2012
Topics: Dodd-Frank looking better, universal public LTCI? Gross: death of equities, Malkiel: equities alive and well, US/Florida house prices up, Toronto/Vancouver sales slow, ‘lump-sum’ vs. annuities, voluntary vs. mandated pensions, pensions and muni bankruptcies, Danish rates go negative, Finra’s unsavoury arbitration, money market reform, Sarbox failed, end-of-life plans. Personal Finance and Investments In the Globe and […]
Hot Off the Web- July 30, 2012
Topics: Humans compelled to trade, wills after re-marriage, long-term care fears over-rated? withdrawal strategies, US/Canada home prices up, Toronto no bubble-maybe, pension changes? pension costs critical, do actuaries add value to pensions? retirement needs 25 years of safe assets? gold is insurance? disaster economics suggests portfolio insurance re-think? illegal acts essential to success in financial […]
Optimal withdrawal strategy for retirement income portfolios-A review
In a nutshell: The authors compare five retirement withdrawal strategies (under the constraint that the retiree considers bequests to be of zero importance) and define a measure of Withdrawal Efficiency Rate as a means to compare them. They conclude that the commonly mentioned/used “Constant Dollar” (first year 4% of original assets, then adjusted annually for […]
Hot Off the Web- July 23, 2012
Topics: Banks=1: Customers= 0, group RRSPs: high cost and zero guidance, beating the index? arbitrary/insane US medical charges, ETFs OK, US home sales down and prices bottom, Florida home sales and prices up, reverse mortgages still NOT, CPP at 65 not 70, Nortel bankruptcy a pensioner disaster, pension fees high, bond buyers irrational? financial industry […]
Took CPP at 65 instead of the previously planned age 70: What changed?
In a nutshell: The combination CPPIB investment strategy changes from passive to active, potentially higher effective future taxes, less transparency in CPP asset valuation due to growing proportion of private (company and real estate) vs. public investments, uncertainty of actuarial forecasts and, should circumstances demand it, government’s ability to change CPP (target) benefits, drove my […]
Hot Off the Web- July 16, 2012
Topics: Advisers vs. salesmen, funds vs. ETFs, income splitting, wills, snowbird travel health insurance, Canadian house prices peaked? OAS costs to soar, Social Security’s huge hole, GM decision a dry-run for Nortel pensioners, collective DC plans with guarantees? Hedge funds? Roubini’s “perfect storm”, Treasuries not recommended? Occupy Wall Street vs. Unintended Consequences, ”risk-free” assets an […]
Hot Off the Web- July 9, 2012
Topics: Filial support laws, 401(k) costs? Canada home prices up but sales down, US home prices up, US pensions: discount rate relief and lower equity allocation, Libor manipulation financial industry’s “tobacco moment”? low trust in financial industry results in lower retirement savings? cities in the hook for invisible guarantees might head into bankruptcy, impact of human […]
Hot Off the Web- Jun 25, 2012
Topics: Elder financial abuse, US reverse-mortgages may be better but are they good enough? are target-date funds safe? rent or buy not just a financial decision, tightening mortgage rules imminent in Canada? Nortel bond-holders $1.25 while pensioners $0.15? good ideas in OECD pension report, pension fees, post-war parallel of “financial repression” and being on the […]
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