If the pay wasn’t so lousy, everybody would retire.
WHEN WE THINK about portfolio building, we tend to think first about stocks. They’re our engine of investment growth—and the source of endless anxiety. Indeed, to make stock market investing palatable, we take all kinds of precautionary measures, including diversifying broadly, adding bonds, throwing in cash, purchasing gold and goodness knows what else.
But maybe we have this all wrong. Perhaps, instead, we should start with cash: how much we currently have in safe,
A WRITER RECENTLY asked my opinion of gig economy jobs and how they could benefit retirees looking for extra income. I looked up the term to be sure my understanding was correct. It was—except we used to call the jobs “temporaries,” “part-time,” “project work” or “consulting.” As I told the writer, a gig economy job sounds pretty good for us retirees who want to keep active or supplement our income, especially if it doesn’t involve being a crossing guard.
IT BAFFLES ME that people often favor stock-picking over index funds—and yet they fail to measure their portfolio’s performance against a proper benchmark. I’m not talking about those who buy a few individual stocks for entertainment or education. For them, it’s a worthwhile pastime and the stakes are low.
But there are others who ignore the evidence and arguments against active management, and devote serious money to picking stocks and timing the market in hopes they’ll earn market-beating returns.
MY GREAT-UNCLE, Jerry Kelly, was an American pilot in the Second World War. On Oct. 20, 1944, he was flying a close-support mission over Germany when his P-47 Thunderbolt was hit by anti-aircraft fire. After he radioed that he had smoke in the cockpit, his plane began losing altitude and was last seen disappearing into a cloud. Jerry was 20 years old.
More than 71 years later, a UPS carrier delivered a blue box to my home.
I HAVEN’T BEEN feeling myself lately. Until now, I didn’t understand what had brought this on. You see, I have this different attitude toward money—and it’s changed the way I behave.
Before, it seemed like money was always on my mind. I used to love to read Barron’s every week. Now, I just pick it up in front of my house and toss it in the garage, where it joins 20 other unread copies.
I’M JUST A FEW years from age 65—and being eligible for Medicare. One of my concerns: making a mistake that could trigger penalties.
If you file for Social Security before age 65, you’ll be automatically enrolled in Medicare Part A and B. What if you’re still working at 65? Ask your human resources department for advice. Your coverage at work will dictate whether you should file for Medicare.
If you aren’t covered by an employer’s health insurance plan and you aren’t yet collecting Social Security benefits,
JUST 12% of actively managed U.S. stock funds outperformed the broad U.S. stock market over the 15 years through June 2019, according to S&P Dow Jones Indices. Index funds, anyone?
NO. 56: NO INVESTMENT is risk-free. While the standard measure of risk is volatility, it isn’t the only risk. We also need to consider threats such as inflation, trailing the market averages and failing to amass enough to meet our goals. Indeed, for long-term investors, stocks may be the least risky choice, while safe investments like Treasury bills can be a disaster.
WRITE YOUR own obituary, and list which newspapers and other publications you’d like it sent to. Your family will appreciate having details about your life’s milestones. It will also give you a chance to ponder the achievements you’re most proud of—and it may spur you to consider the work that’s unfinished. What else would you like to accomplish in the years ahead?
DILUTION. As a company sells additional shares or compensates employees with stock, existing shareholders see their stake diluted. Dilution also occurs at the macroeconomic level. As new companies spring up, existing corporations see their claim on the economy’s profits diluted. This dilution has been estimated at two percentage points a year.
WHEN WE THINK about portfolio building, we tend to think first about stocks. They’re our engine of investment growth—and the source of endless anxiety. Indeed, to make stock market investing palatable, we take all kinds of precautionary measures, including diversifying broadly, adding bonds, throwing in cash, purchasing gold and goodness knows what else.
But maybe we have this all wrong. Perhaps, instead, we should start with cash: how much we currently have in safe,
A WRITER RECENTLY asked my opinion of gig economy jobs and how they could benefit retirees looking for extra income. I looked up the term to be sure my understanding was correct. It was—except we used to call the jobs “temporaries,” “part-time,” “project work” or “consulting.” As I told the writer, a gig economy job sounds pretty good for us retirees who want to keep active or supplement our income, especially if it doesn’t involve being a crossing guard.
IT BAFFLES ME that people often favor stock-picking over index funds—and yet they fail to measure their portfolio’s performance against a proper benchmark. I’m not talking about those who buy a few individual stocks for entertainment or education. For them, it’s a worthwhile pastime and the stakes are low.
But there are others who ignore the evidence and arguments against active management, and devote serious money to picking stocks and timing the market in hopes they’ll earn market-beating returns.
MY GREAT-UNCLE, Jerry Kelly, was an American pilot in the Second World War. On Oct. 20, 1944, he was flying a close-support mission over Germany when his P-47 Thunderbolt was hit by anti-aircraft fire. After he radioed that he had smoke in the cockpit, his plane began losing altitude and was last seen disappearing into a cloud. Jerry was 20 years old.
More than 71 years later, a UPS carrier delivered a blue box to my home.
I HAVEN’T BEEN feeling myself lately. Until now, I didn’t understand what had brought this on. You see, I have this different attitude toward money—and it’s changed the way I behave.
Before, it seemed like money was always on my mind. I used to love to read Barron’s every week. Now, I just pick it up in front of my house and toss it in the garage, where it joins 20 other unread copies.
I’M JUST A FEW years from age 65—and being eligible for Medicare. One of my concerns: making a mistake that could trigger penalties.
If you file for Social Security before age 65, you’ll be automatically enrolled in Medicare Part A and B. What if you’re still working at 65? Ask your human resources department for advice. Your coverage at work will dictate whether you should file for Medicare.
If you aren’t covered by an employer’s health insurance plan and you aren’t yet collecting Social Security benefits,
JUST 12% of actively managed U.S. stock funds outperformed the broad U.S. stock market over the 15 years through June 2019, according to S&P Dow Jones Indices. Index funds, anyone?
NO. 5: WE CAN’T stop misfortune from befalling us—but we can limit the fallout by keeping emergency money, living below our means, taking on debt cautiously and buying the right insurance.
WRITE YOUR own obituary, and list which newspapers and other publications you’d like it sent to. Your family will appreciate having details about your life’s milestones. It will also give you a chance to ponder the achievements you’re most proud of—and it may spur you to consider the work that’s unfinished. What else would you like to accomplish in the years ahead?
NO. 56: NO INVESTMENT is risk-free. While the standard measure of risk is volatility, it isn’t the only risk. We also need to consider threats such as inflation, trailing the market averages and failing to amass enough to meet our goals. Indeed, for long-term investors, stocks may be the least risky choice, while safe investments like Treasury bills can be a disaster.
DILUTION. As a company sells additional shares or compensates employees with stock, existing shareholders see their stake diluted. Dilution also occurs at the macroeconomic level. As new companies spring up, existing corporations see their claim on the economy’s profits diluted. This dilution has been estimated at two percentage points a year.