One of the biggest frustrations for investors is that there is one huge factor no one can control—the returns that the financial markets are going to provide in any given stretch of time.
When we first start investing, we probably ought to receive the serenity prayer* along with the prospectus for whatever fund or security we’re purchasing.
Has your 401(k) become a 201(k)? That’s a pretty common joke these days, as financial commentators look for new ways to talk about plunging markets—and plunging 401(k) balances.
Retirement … retirement … retirement. Most of us are painfully aware that the responsibility for providing for ourselves in retirement rests squarely on our own shoulders. If we didn’t fully appreciate this sobering situation before, we certainly do now.
Retirement is very important. But is it the most important reason to save?
On March 31, I was in New York City as a member of a panel speaking with a group of financial advisors on the issue of retirement income. Being back in the city brought back a lot of great memories, and it was fantastic to walk around my old neighborhood with my wife and our two young children.
I’ve been working on various aspects of retirement issues for more than 15 years now, both at Vanguard and before that in NYC, and I’m still amazed at how badly people want to think that there’s a “product” answer to retirement. I guess the grand vision is that people will get to retirement, drop everything, and put all their money into a perfect solution.
I’ve had a hard time deciding which way the economic and investment winds are blowing, so I decided to make a list of the things I think have changed and those that haven’t.
