I gave a listen to a recent episode of the Stay Wealthy podcast. Investment manager Cullen Roche was the guest for the episode. In the episode, (if I understand his argument correctly) Cullen suggests short-term corporate bonds for one’s fixed income portfolio. He argues that Treasury bonds are currently paying too little to merit the […]
Are Long-Term Treasury Bonds Worth Holding? II
Read Part I of the series on Long-Term Treasury bonds here. Interest rate risk is scaring investors away from longer maturity bonds. And this is the case regardless of issuer quality – whether’s it high-quality U.S. government Treasury bonds, or low-quality emerging market debt. Given today’s low interest rates, long-term bonds are simply […]
Are Long-Term Treasury Bonds Worth Holding?
Ah, bonds. They’re quite the investment instrument. In a world of volatile stocks, bonds offer safety of principal – at least if you’re doing it right. That means shunning corporate bonds in favor of Treasury bonds, which includes shunning high-yield bonds. Yes, Treasury bonds are where the safe portion of your investments should lay – […]
Don’t Buy a House; Take a Sabbatical Instead
I’m writing this just a few feet from the beach – from the comfort our little self-converted recreational vehicle (RV). This is roughly our seventh month on the road – and almost one year since I’ve left the office. As I’ve enjoyed learning a whole new skillset in the van-building process (electronic schematics, electrical soldering), […]
The Cruel Math of Inflation on Stagnant Wage Growth for Late-Stage Earners
I’ve come across two distinct clients recently who were experiencing identical issues. Both clients were single women on the cusp of retirement. And, as with almost every middle-class American, these two distinct clients faced an identical situation: They had not saved enough money. The simple (obvious?) solution to their savings shortfall was to downgrade their […]
Case Study: Account Distribution Hierarchy for Mortgage Paydown in Retirement
Imagine a retired client. Being 68 years old, he’s managed to save a bit of money over his lifetime. Whatsmore, that money is spread across different types of accounts: His tax-deferred traditional IRA His tax-free Roth IRA The family’s taxable investment account Being that the client is retired – and a good portion of his […]