Letters

To the Editors:

Thank you for including “Deficits, the Fed, and Rising Interest Rates: Implications for Bond Investors,” by Joseph Davis, in the June 2010 AAII Journal. The possibility that we will experience a major increase in interest rates is one of the most important problems facing long-term investors. In searching for information concerning this subject, I find it to be poorly covered by most investment literature.

Milton Zipper
Lantana, Florida

Comments posted online to “How Much Should You Have in Equities Until Retirement?” by Jerome Clark, July 2010 AAII Journal:

This is nice information for the million-dollar portfolio. There are many people with much less who retired long ago and it’s hard to find studies and strategies for the ‘small people.’

Bob From Illinois

Bob is right. The ‘small people,’ or those of the 98% who did not benefit greatly from the Bush tax cuts, are working as greeters at Costco and Wal-Mart. Or, if they can, they will work until they drop dead at their desks at age 75.

Michael From California

Charles Rotblut Responds:

The $1 million figure cited in Jerome Clark’s article was intended simply to provide an example. Income (e.g., pensions, Social Security benefits, etc.), expenses and lifestyle all impact the actual amount of savings required for retirement.

The key point of both Jerome Clark’s and Josh Cohen’s articles [both in the July 2010 AAII Journal] is that the decision on how to allocate at retirement should be based on the amount of portfolio withdrawals relative to the projected income needs. This is a consideration that applies regardless of how much an individual has saved.

Comment posted online to “Value on the Move: Screening for Low PEG Ratio Stocks,” by Cara Scatizzi, July 2010 AAII Journal:

It’s important to have current information about a company when making a decision. Amedisys, Inc. AMED, highlighted in the article as the top stock in both screens, is under investigation for possible fraud in medical billings. Recent information is not translated in the data because it takes a few years to show up. One should investigate extreme outliers in detail if one wants to invest in them.

Girishbhai From Florida

Comment posted online to “Grandparents’ Gifting for College Education,” by Dawn Brown, July 2010 AAII Journal:

This is a good article that concisely covers the major considerations of grandparents helping with grandchildren’s college expenses.

Steve From Georgia