I’m out of the country on a business trip. I heard the sequester is moving forward. For once we are going into something as promised. That’s a change from all those "if Congress doesn’t act …" things. The stock market as a leading indicator is telling us the country and the economy will do just fine.
PenFed CD Rates Will Be Falling in March by Ken Tumin at DepositAccounts.com
After offering market-leading rates for the last few months, PenFed will cut the interest rates on its CDs in March. The rate for the 5-year CD will be 1.65%. It’s still competitive with Discover Bank and Ally Bank.
Vanguard Managed Payout Funds Review by Mike at Long-Term Returns
I think Mike is a little too harsh on the Vanguard Managed Payout Fund. It can be better by Vanguard standards but there are many worse ones out there.
How to build a better 5 percent income fund by Allan Roth at CBS MoneyWatch
Instead of using a Vanguard Managed Payout Fund, can you get your 5% income by following the strategy in this article? The keyword here is "better."
Insurance Should Stink by Mike Piper at Oblivious Investor
It should stink because insurance has value, in the same way having your payout managed has value. If you want value, you must pay or do it yourself.
Should You Max Out Your 401(k)? by Matthew Amster-Burton at MintLife
Absolutely. I maxed out my 401(k) every year since I started working full time. It took more than 20% of my income in the beginning. You get used to it fast.
What low interest rates mean for stocks by Larry Swedroe at CBS MoneyWatch
Research says stock returns could be low too. Oh no, I need them higher!
Agonizing Over Optimal by Rick Ferri at RickFerri.com
I experiment and deviate but I don’t agonize.
Is the U.S. Turning Into Japan? We Should Be So Lucky by Zachary Karabell at The Atlantic
U.S. turning into Japan would be really bad, because we would get all the bad in Japan but none of the good. We don’t have Japan’s savings culture. We won’t get that culture just because the economy stops growing.