The stock market has been quite volatile in the last month. There has been considerable investor uncertainty associated with the novel coronavirus and COVID-19. Historical perspective The chart shows the performance of the S&P 500, adjusted for inflation using the US Consumer Price Index (CPI) since the beginning of 1926 (when the Standard Statistics Company[Learn more…]
When constructing an investment portfolio, the more secure and predictable assets you have, like social security and pensions, the more risk you can take. Rick Miller discusses the lifetime balance sheet and inflation-protected assets like social security.
Returns are unknown, and an individual cannot be certain they will achieve a larger return from one management strategy over another. Rick Miller discusses the how risk premiums should factor into expected returns.
It’s important to make an estate plan that protects your family if you die. Losing a loved one is hard enough without losing your standard of living too.
When talking about investment risk, it is tough to nail down the details of risk tolerance. Risk tolerance: Risk tolerance is the degree of variability in investment returns that one is willing to withstand. Rick Miller discusses the implications of risk tolerance and capacity in living standards.
What interest rate do you use when planning for life? Rick Miller discusses the use of risk-free rates when planning for returns.
Income Volatility is defined as the variance of income, the divergence from the average. When individuals have risky income, often they are not as concerned with implications of lifetime wealth as they are cash management. Rick Miller discusses income volatility when planning finances for the future.