Meeting the Longevity Challenge

chart of the week for February 24, 2014 large thumb

Taking a conservative approach to investing for those approaching or in retirement may seem prudent, but being too conservative risks depleting the portfolio prematurely.

  • Income Struggling to Keep Up

    Incomes of those in the US have not recovered since the 2008 Credit Crisis has not recovered, and remain lower than pre-crisis. In fact, incomes are growing at a lower rate than before the crisis.

  • Consumption is Key to US GDP

    The dependency of consumption on consumer confidence and the subsequent reliance of the economy on consumption leave the economy too vulnerable to financial market conditions.

  • The Inverse Relationship Between Wealth and Savings

    As stock, bond and housing values rise, consumers tend to feel wealthier, leading them to spend more. That spending comes about not from rising incomes but because consumers are saving less.

  • Breaking Bonds: Why Your Traditional Fixed Income Isn't Working

    Investors in funds that track the Morningstar Intermediate Bond Category lost almost 4% in the May-June interest rate spike.

Sep 30, 2013 To Oct 21, 2013 Newer