One Perspective on the Best Places to Retire by Ann Carrns at New York Times Bucks Blog
I’m thinking I should just experiment with many places when I retire. Live in one place for a few months to a few years depending on how I like it. Move on to the next.
Retirement Countdown: Sheila Downsizes at Squared Away Blog
Downsize and/or move to a less expensive area, especially when you are no longer tied to a job. See previous post Lifestyle Design: Choose Where You Live.
I Know I’m Supposed To Follow My Passion. But What If I Don’t Have A Passion? by Chana Joffe-Walt at NPR Planet Money
There’s a passion and there is practicality. I still think following one’s passion is really a luxury that too many pursue but can’t really afford.
Income stability matters in your portfolio by Larry Swedroe at CBS MoneyWatch
Larry is talking about labor income stability. I would also add the size of the labor income relative to the portfolio also matters. If you are able to earn back what you lose in a bear market quickly through labor income, then you wouldn’t worry as much about a bear market.
Reducing bonds? Proceed with caution by Vanguard Research
A research paper by Vanguard showing the role of bonds, or rather fixed income, in a portfolio. Always remember reducing bonds does not mean increasing REITs, dividend stocks, commodities, etc. You can reduce bonds but increase savings accounts, CDs, and I Bonds.
Is It Time to Reform the 401(k)? by Matthew Amster-Burton at MintLife
Mandatory contribution to an individually-owned account invested in index funds — I’m all for it. Replacing 401k with pooled accounts subject to diversion and redistribution, no thank you.
Does a Bond Fund’s Yield Tell You Its Level of Risk? by Mike Piper at Oblivious Investor
Yes and no. Find out why. If a CD’s yield is higher than a bond fund’s, does it tell you the CD has a higher level of risk?
Future of Free Checking and Reward Checking Accounts by Ken Tumin at DepositAccounts.com
Great behind-the-scenes information on free checking and reward checking. I think free checking will stay. I doubt many people actually pay a monthly maintenance fee on checking accounts even at mega-banks. Most just keep a minimum balance to waive the fee. The opportunity cost on the minimum balance is miniscule.
Reward checking will also stay, albeit at a lower rate and a lower balance cap. Most people don’t keep that much in checking. A higher rate sounds rewarding but the actual payout isn’t costing the banks that much. People value the higher rate more than its economic value.
Rejoice! Your House is an Investment Again by Rick Ferri at RickFerri.com
Your house has always been part housing consumption, part leveraged investment. The investment part doesn’t always give a positive return, just like any other investments, but when the return is positive, it’s quite strong, due to leverage.
Thoughts On Paying Off Mortgage at The White Coat Investor
Mortgage rates have gone down to 2.5% for a 15-year fixed rate. Is it still worth prepaying? With a strong stock market, I can see people having second thoughts. If you have lower yielding fixed income investments though, it’s still worthwhile.