Forbes recently published a focused piece summarizing the top reasons to use bonds for investing. Here are those reasons, in no particular order, and my comments as they relate to using TIPS and I-Bonds for retirement income security: 1. Preservation of Principal. This is definitely number one on the list for retirement planning. Moreover, you [...] Read more »
New I-Bond Rates
ThursdayNov 5,2009
As many of you know, the Treasury updates interest rates for I-Bonds each May 1 and November 1. These updates include both the fixed rate component that will remain for the life of the bond and the inflation adjusted component that will remain in effect for the next six months. On November 1, 2009 the [...] Read more »
TIPS Buy Peace of Mind
ThursdayOct 29,2009
The Wall Street Journal ran a story this week titled “TIPS Buy Peace of Mind, But at a Steep Price.” I understand and agree with the “peace of mind” concept but not so much the “steep price.” This is how the article starts: Inflation-protected US government bonds are generally a great core holding for ordinary [...] Read more »
Variable Annuities Devalued
SaturdayOct 24,2009
It seems that insurance companies are unhappy about their profit margins and risks in sales of variable annuities. To compensate, they are offering new “simplified” products. Unfortunately, these new annuity products have two characteristics that make them even less attractive to purchasers. Rates have increased and benefits have been watered down. According to this article [...] Read more »
Turning Savings into Retirement Income
WednesdayOct 21,2009
A Money Magazine reader recently submitted this question to Walter Updegrave, a senior editor and well known personal finance writer: The 4% rule seems to have become the conventional wisdom for drawing money from your savings in retirement. But I believe the rule is flawed. I think it might make more sense to choose a [...] Read more »
TIPS Auction and I-Bond Reset
SaturdayOct 17,2009
The Treasury has scheduled an auction of five-year TIPS on October 26, 2009. (To be more precise, with an issue date of 10/30, these TIPS will have an actual duration of four years and six months.) The official announcement date will be October 22. The last 5-year TIPS auction was on April 23, 2009. Those [...] Read more »
The Truth About Stocks Aftermath
WednesdayOct 14,2009
I received my November issue of Money Magazine today. I was curious about any reader reaction to last month’s interview with Zvi Bodie which the magazine titled “You Can’t Handle the Truth About Stocks.” The editors printed two reader letters responding to the interview. One had this to say: I wish more people had the [...] Read more »
Baby Boomers to Financial Advisers: We Need Income not Wealth
SaturdayOct 10,2009
According to this article, financial advisers and wealth managers are realizing that they are in the early stages of a huge paradigm shift. Baby boomers are less concerned about growing their retirement nest egg and more concerned about preserving what they have. More particularly, they want to be told what they can do to avoid [...] Read more »
Searching for New Retirement Income Products
WednesdayOct 7,2009
I read an interesting opinion piece today from the Retirement Income Industry Association. The author was noting how industry members thought only about the products they offer themselves to provide retirement income. Mutual fund companies think that their funds are the way to satisfy the need for retirement income. Insurance companies on the other hand [...] Read more »
10 Year TIPS Auction Next Week
FridayOct 2,2009
For those interested in adding some Treasury Inflation Protected Securities (TIPS) to their retirement income plan, there will be a Treasury auction of TIPS with a ten-year maturity in Monday, October 5. The actual maturity is 9 years and 9 months. The interest rate (coupon) will be 1.875%. Remember that this is the permanent part [...] Read more »