Why Have Faith in the American Economy?

The Investment Race

The blog post of March 23 implies that a “steady-as-you-go” approach to investing during these times is a good idea. Think long term, attend to your asset allocation, rebalance on schedule, and provide for some cash. The post two days later (March 25) advised us to be generous if we can—many people don’t have portfolios and the economic disruptions are severe. But neither discusses why we should have faith.

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Coronavirus and the Retired Investor

This is not your portfolio!

Fear can paralyze us. We fear the Coronavirus, getting sick, and long waits for treatment. We fear the reactions to the virus, including those of business and government. We are shutting down normal life under the edicts of common sense and government proclamation. Retirees, we’re told, are especially vulnerable because of our age, and we seem psychologically vulnerable as well. Gyrating asset markets add to the stress, and many retirees depend on portfolios for their livelihood. Several people I’ve spoken with wonder whether they’ll be able to sustain themselves through and after this crisis. What should we do?  Continue reading

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