In Part 4, we get practical, demonstrating how discoveries from previous articles can be applied to a goals-based investment approach in retirement.
Part 2 of “Long-Horizon Investing” on Advisor Perspectives takes a tour of the theoretical reasons why stocks must be risky at all horizons.
I’m excited to announce the publication on Advisor Perspectives of the first article in a five-part series entitled “Long-Horizon Investing”!
The “4% Rule” and “Fixed Percentage Rule” are opposites…but both involve risk, including a scary beast call “sequence-of-returns” risk.
As “Bob and Fred’s Excellent Adventure” resumes, they hop in a time machine to try a completely opposite retirement income strategy. Does it wok better?
Let’s dig further into the facts and foibles of the 4% rule, as a launchpad for a broader discussion about retirement income.
We published earlier articles noting (1) the current bear market didn’t exist in monthly data and (2) the current yield curve inversion didn’t exist in TIPS data. Neither of those observations is still true.
Measured with daily data, the S&P 500 Index (the usual stand-in for “the stock market” in the U.S.) is in its second bear market in just over two years. Measured with monthly data, the S&P 500 is still in a historic bull market that stretches back to 2009.