Event: Time Horizons

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“I don’t mind if my investments run out during retirement” – said no investor ever.

Maybe you’ve heard people say that when they’re ready to retire they’ll get out of the market. They say prudent investors use stocks only during their working years, but when it’s time to retire, they trade in for something more reliable – an annuity, more bonds, even all cash!

It sounds logical, until you consider the major flaw in this thought process: the key to successful investing up to and into retirement is maintaining the right level of equity exposure within your investment portfolio.

And this level may be higher than you expect.

Think of your investments during retirement like you would an endowment for a scholarship fund. The endowment holds its principle in perpetuity and only allows for a certain amount of money to be taken from the fund each year. By never taking more than the allotted amount, the fund ensures that there will be money for years to come to maintain the scholarship.

In contrast, having all of your money in bonds during retirement doesn’t allow the money to grow fast enough to keep you from cutting into the principle, which puts you in danger of using up your retirement savings early.

In a very real sense, the date of retirement is actually the beginning of the investor’s most important investing phase. The purpose and handling of the portfolio in this phase can have as much to do with retirement income as the investor’s entire lifetime of investing decisions.

This time period – the time you plan to keep your money invested – is what people in financial professions call your Time Horizon. Investopedia defines it as the total length of time that an investor expects to hold a security or portfolio.

So, now it’s time for you to answer some questions about your portfolio while you plan for your retirement:
• What is your time horizon? (How long do you expect to hold your portfolio?)
• What are your expected income needs in retirement?
• What part will your portfolio play in meeting these needs over the time required?
These are complex questions that may be hard to answer without some help.

On May 17, Evan Vanderwey will be hosting an Investor Coaching Seminar in East Lansing that will dive into this concept, and you’re welcome to join us. Afterward you are invited to schedule time to meet with us to talk about your retirement income needs and investing time horizon so that you can achieve peace of mind.

For more information about Evan’s upcoming Investor Education Seminars, contact Kristin Faasse (kristin@cornerstonewealthpartners.com) or Liz Trawczynski at (517) 853-5473.

 

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Texas and Taxes: FREE-MARKET GEMS

The False Fed Facade . . . may finally be cracking as the latest generation of Fed Reserve appointees begin to show their true political colors.

Liberty is Individual (2:20) . . . Dr. Peter Jaworski of Learn Liberty uses Game of Thrones to illustrate the evil of collectivism.

Pro Capitalism is NOT Pro Business (3:30) . . . Dr. Jeff Miron, professor of economics from Harvard tackles the top 3 myths about capitalism.

So You Want it Fair? . . . Recent calls for the rich to pay their fair share in taxes–if those calls were heeded literally–would mean deep tax cuts for top and increases for the bottom, as the top 2.7% earners account for more than half of all tax revenues. Be careful what you ask for.

Beating the Bust . . . Texas continues to confound. It’s growing, it’s working, and it’s living what we all used to call the American dream.

 

 

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Chuck Norris vs. Communism…and other FREE-MARKET GEMS

Chuck Norris Whipped Communism . . . Ok, not exactly, but films like his and those of Jean Claude Van Damme sure helped. Chuck Norris vs. Communism, a recent documentary available now on Netflix, shows us one more example of how black-market entrepreneurship whipped the bad guys.

A Good Offense (3:30) . . . CNBC pits a socialist against a capitalist, and Mark Matson (can you guess which one he is?) gives a knock-out defense of the free-market.

Net Neutrality (2:45) . . . The FCC’s version of fairness will achieve equality. Think breadlines where everyone waits an equally long time to pay an equally high price for an equally bad loaf of bread.

3D-Printed Limbs II (5:00) . . . A world-wide network of private digital printers and privately funded designers and programmers may be the tip of a decentralized iceberg. The prosthetic hands are pretty cool too.

Don’t be Awful . . . Jason Kuznicki of Libertarianism.org says this is the message of private property ownership. It doesn’t turn anyone into saints, but it does encourage us to not be bad in a lot of the usual human ways.

 

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Beef, Baseball, & Superhero Limbs: FREE-MARKET GEMS

What is Competition? (5:00) . . . Peter Klein of Mises reminds us that what the government terms competition is something alien to those who actually compete.

3D-Printed Limbs (10:00) . . . Free, open-sourced design is making prosthetic limbs available to anyone with a 3D printer. Kids dig the super-hero models, especially Spider Man.

Take Me Out to the [publicly subsidized] Ball Game (9:00) . . . Hartford, Connecticut, joins a growing list of struggling cities putting their hope in tax-payer-funded stadiums, despite the poor track record of the strategy.

Where’s the Beef? (9:00) . . . It’s in the largest natural wildlife reserve in the continental US, if things go as planned. It’s privately funded of course.

Potter Policy . . . J.K. Rowling’s fictional vision of metal-based money exchange and 100% reserve banking make it a very old-fashioned, but very stable, economic world of wizards.

 

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War w/China, Obamacare Progress Report, et al: FREE-MARKET GEMS

Economics is Simple . . . David Gordon of Mises reviews John Tamny’s new book Popular Economics. Its thesis is simple: that maximizing productivity comes one way — entrepreneurs willing to take great risks for the chance at great profits.

Obamacare Progress Report (3:00) . . . Prof. Antony Davies of Duquesne University reviews the promises and the realities of the Affordable Care Act. No surprise: they don’t match up.

Merrick Garland . . . Is he really a moderate? That depends on how you define the term. If by “moderate” you mean government-fawning yes man, then he’s extremely moderate.

War with China . . . Barry Brownstein of FEE explores the consequences of the tariff frenzy that our presidential contenders seem to be in. And he reminds his readers that trade wars often lead to real ones.

So what is Ethereum? (10:00) . . . Apparently it’s everything. What Bitcoin did for currency, Ethereum (so the pundits say) will do for every other centralized thing.

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