Radical Retirement for the Kids

Retire early and fly away

Last time we saw Christy Shen and her husband, Bryce, living one version of a radical retirement: they retired in 2014 (Christy was 31 years old) after only a few years of work. Each year while working they saved more than half of their earnings. Can anyone do that, or were they just lucky to invest when returns were high? Continue reading

Christy Shen Retired at 31: Is She Crazy?

Christy and her husband, Bryce, retired in 2014 at age 31; they had about $1.16 million saved, which includes about 4 years of living expenses ($160 thousand–my estimate). Can two people make the money last in Toronto, Canada, where they live? What if they have kids? Continue reading

Wrestling Unknown Knowns: Better Investing

Department of Defense photo

Department of Defense photo

Remember Donald Rumsfeld, Defense Secretary from 2001 to 2006? In response to a reporter’s question about weapons of mass destruction, he offered us valuable epistemological insight into known knowns, known unknowns, and unknown unknowns. Here’s a link if you have 35 seconds to enjoy a little history.

Mr. Rumsfeld never mention unknown knowns, with which investors often wrestle. Continue reading

Battling Age with Active Living: The Villages in Florida

At The Villages

At The Villages

Are you retired and thinking of change, maybe moving to a warmer climate where seniors who drive like seniors are welcome? The Villages, a large retirement community in central Florida, may be for you.

My wife and I just spent a couple of days at The Villages visiting friends—two of about 110,000 people living there part- or full-time. The Villages occupies about 35 square miles and is growing fast.

Continue reading

Winning the Loser’s Game

Securities markets depend on markets for goods and services

Securities markets depend on markets for goods and services

Most of us enjoy movies, and there is a new one freely available on the Internet entitled, “How to Win the Loser’s Game.” If you have or want investments, this video is an excellent way to learn the essentials of investing. Fix some popcorn, open a soft drink and settle in front of your TV or computer. You will hear clear explanations of key ideas along with good interviews of people involved in creating modern investing.

Viewers can watch the film in one showing of 80 minutes, or in ten parts of varying length. The film comes from Britain, and the narrator has a pleasant British accent, adding perhaps a touch of class.

Continue reading

A Winner: Passive Investing in 2014

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With the end of 2014, year-end investment returns are coming in, and two noteworthy results are these:

  • Passive investing, especially with Vanguard Group, continues to gain momentum
  • Passive investing, according to preliminary results, produced higher returns than many competing styles of investing.

Continue reading

When Dementia Strikes Home, We All Need Help

A review of, Chicken Soup for the Soul: Living with Alzheimer’s and Other Dementias, 101 stories, eds. Amy Newmark and Angela Timashenka Geiger, (Cos Cob, CT: Chicken Soup for the Soul Publishing, LLC, April 2014).  Available online at Barnes and Noble, Amazon, and perhaps your local bookstore.

Photo by Matt, Chicken Soup for the Soul, https://www.flickr.com/photos/dippy_duck/

Photo by Matt, Chicken Soup for the Soul, https://www.flickr.com/photos/dippy_duck/

The editors of this fine book have compiled 101 useful stories of living with dementia. I wish it had been available years ago.

Mary Jane (MJ), my mother-in-law, suffered from dementia for many years. My wife, Barbara, and I aren’t sure when it started; but MJ had been growing less capable, more dependent, since the late 1950s. Continue reading

What the Big Guys Say about Risk at Retirement

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What should your stock allocation be at your retirement date, or in different words, how much risk (variability) should you tolerate near and at retirement? I discussed this issue in a series of posts earlier this year (see links at end), and recently the Wall Street Journal (WSJ) published an article (paywall) about it.  Continue reading

Make Money by Managing Investment Risks in Retirement

Managing your trip in a risky environment

Managing your trip in a risky environment

Risk is sometimes the elephant in the investing room, especially for retirees. People understand stocks as ownership and bonds as debt, but risk is hard to grasp and instinctively dangerous.

Later Living has recently published four posts on risk. Risk and high returns go together, so retirees who want high returns must deal with risk. Here are the four earlier posts knit together into one risk story: Continue reading