Become a Patron! For as long as I've been writing about money, I've been saying almost everybody owns too many bonds. My argument has nothing to do with "risk" or "volatility" or "rebalancing." It's much simpler than that: bonds don't pay enough in interest. If and when they start paying more in interest, I will like them more and start saying people should buy them. But … [Read more...] about Good reasons to own bonds
Understanding one (positive) nuance of the latest federal relief
Become a Patron! One of the most immediate consequences of the laziness of finance and economics reporters is that they're incapable of exerting themselves to understand any issue that doesn't affect them personally. Since journalists are also savers and investors, at least through their retirement plans, if a source says something about mutual funds or retirement accounts … [Read more...] about Understanding one (positive) nuance of the latest federal relief
How big a deal is reinvestment risk?
Become a Patron! When financial professionals talk about investing, the conversation invariably turns to the question of "risks." This is a term of art only vaguely related to its everyday meaning. Ordinary people don't talk about "upside risk," for example. That's the possibility that your investment will perform better than anticipated — not a problem for an ordinary … [Read more...] about How big a deal is reinvestment risk?
Is investment behavior “coaching” possible?
Become a Patron! Ever since I took my first job in college as a sandwich artist, I've been suspicious of the American reluctance to talk about money. The franchisee scumbag who hired me told me how much I'd be making, and told me not to tell any of the other employees. The message was clear: he was going to be paying the white, male, inexperienced college student more than … [Read more...] about Is investment behavior “coaching” possible?
Unreduced Social Security spousal and dependent benefits and the family maximum
Become a Patron! Last week I wrote about the way age differences can play an important role in thinking about the timing of Social Security old age benefit claims. Specifically, spouses need to take into account two separate variables: the increase in the primary worker's old age benefit by delaying their old age benefit between ages 62 and 70, and the increase in the … [Read more...] about Unreduced Social Security spousal and dependent benefits and the family maximum