Beneficiaries in Retirement Accounts
Our disciplined friend asks us: what if at the end of my days there was a remnant left in my retirement accounts? Let us first clarify that it is difficult to achieve a financial plan that is both robust (in terms of meeting long-term financial needs under multiple scenarios), and that makes the end of […]
READ MORERetirement Plans for Entrepreneurs
An entrepreneur friend asks us: I want to accumulate savings for my retirement in the most appropriate and efficient way, how do I do it? One of the dilemmas of the entrepreneur is that, having blind faith in his business, he prefers to reinvest the profits to make it grow. If the business were profitable, […]
READ MOREFinancial Independence
We found our disciplined friend, who after greeting us asked: I have been hearing about the FIRE movement (short for Financial Independence Retire Early), is that possible? The FIRE movement promotes the idea that, through discipline in saving and spending, you can accumulate enough assets to be able to stop working at an early age, […]
READ MORERoth Retirement Savings Plans
We found our disciplined friend, who thanked us, on behalf of his son, for having guided him in the decision about the savings plan. However, he tells us: my son is being asked if he prefers to invest in the traditional 401k or a Roth, what do you think? Roth plans originated in the Taxpayer […]
READ MORERetirement Savings Plans
We find our disciplined friend looking a little bit confused. After greeting us, he says: my son has just graduated and got his first job, they are offering him a retirement savings plan, but he is very young and I don’t know if it is a good idea, what do you think? Retirement savings plans[1], […]
READ MOREInvest or Speculate
We found our disciplined friend and noticed that he was in good spirits. After greeting us, he says: I have followed your recommendations and I have opened an account to start investing. I am already authorized to use margin, have access to the options’ market, and subscribed to information services dedicated to identifying assets that […]
READ MOREPortfolio Size and Safe Withdrawal Rates
Our disciplined friend calls us, somewhat distraught, to ask us how to estimate the size of the portfolio of financial assets that will support spending during retirement, and how to determine the maximum withdrawal rate year after year. Before we get into the details, let us take this opportunity to explain that simulation models have […]
READ MOREDesignated Beneficiaries
We meet our disciplined friend, whom we already know well, and he tells us: “I have already made a will and the other documents as you recommended. I assume that this establishes all beneficiaries, including those for my retirement accounts (IRAs).” Although wills are very useful in naming and instructing transfer of certain assets, there […]
READ MOREStressless Estates
The disciplined friend, whom we have already met before, tells us: “At the age of 50 we have managed to accumulate sufficient wealth, with financial assets and real estate. We’re going to name our kids as beneficiaries, and we’re going to talk to family and friends. Everyone will be clear about what to do in […]
READ MOREWhat is Sequence Risk?
Our disciplined friend, whom we met in the previous article, tells us: “Thinking about my retirement, I have invested in a volatile portfolio, with an expected average annual return of 6%, higher than my projected annual withdrawal rate (4% of the initial amount, adjusted annually for inflation). Therefore, the withdrawals are sustainable, and I should […]
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