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.
Every December I try to attend the Harvard Memorial Church’s Annual Carols Service. This year I was supposed to go with an old friend. I’ll call him Larry. Larry and I had dinner in October to celebrate his 64th birthday. We made plans at the time to attend the Carols Service together. Four days later[Learn more…]
“…Plans Are Useless, But Planning Is Indispensable” — Dwight D Eisenhower All of our financial plans come with caveats (as does every professional financial plan): * The price level in ten years is unknown. The plan can’t reflect future asset prices and amounts accurately. * Your income will change, and probably increase, but it isn’t[Learn more…]
In mid-March, I attended “Financial Literacy and the Educated American” at The American Academy of Arts and Sciences. It attracted a diverse group of academics, federal and state government officials and interested professionals from business and non-profit organizations. The US Department of Labor and General Accounting Office, the Federal Reserve Bank of New York, Harvard[Learn more…]
A recent Wall Street Journal article observes that the financial crisis and increasing longevity have combined to alter baby boomers’ inheritance expectations dramatically. Many parents suffered substantial losses in the 2007-2009 market crash. Many parents are living longer than they expected. Greater demands placed upon smaller parental resources are a recipe for smaller inheritances. To add[Learn more…]