Briefly Noted Articles

Retiree Portfolios and Warren Buffett’s Allocation Instructions

September 2016
A test of Warren Buffett’s instructions for allocating the cash bequeathed to his wife (10% in short-term government bonds and 90% in a S&P 500 index fund) showed that it has historically worked well for retirees who were willing to cope with higher levels of volatility. Read more »

Guidance for Analyzing an Early Retirement Offer

September 2016
Though an early retirement offer may may seem tempting, there several factors to keep in mind before deciding whether or not to take it. Read more »

10 Attributes Great Investors Share

September 2016
Michael Mauboussin, head of global financial strategies at Credit Suisse, compiled a list of the top 10 attributes he believes the great fundamental investors share. Read more »

Older Adults Place Less Value on Saving

September 2016
Each year a person ages, his or her discount rate—the implied internal rate of return (IRR) required for postponing having the money today—increases by approximately two percentage points. Read more »

A Simple Formula for Calculating “Safe” Retirement Spending

August 2016
Evan Inglis, a senior vice president for Nuveen Asset Management, gives a simple “feel free” strategy that should provide enough money for expenses but also allow a retiree’s portfolio to grow. Read more »

Data Mixed on Whether Volatility Is Rising

August 2016
An analysis of historical price movement among exchange-listed stocks found that the answer to the question of whether stocks have become more volatile will vary if volatility is considered on a daily basis or a monthly basis. Read more »

What Personal Traits Do Savers Share?

August 2016
Researchers studied a longstanding survey of Dutch households that contained demographics plus wealth and savings data to find the factors that would explain why some people have a greater propensity to save than others. Read more »

Study Finds Technical Analysts’ Recommendations Don’t Outperform

August 2016
A study of Dutch-listed firms and the major Dutch indexes found that technical analysis-based buy and sell recommendations were “largely in line with simple technical trading rules.” Read more »

Which Is Better: 4% Withdrawals or Annuities?

July 2016
TIAA Institute compared systematic withdrawals against annuitizing in retirement. Read more »

Not All Flights to Quality Are the Same

July 2016
A flight to quality is a change in market dynamic where there is a shift in allocation from risky assets to safer assets. A new study examined the factors that affect flight-to-quality episodes. Read more »

Suggestions for Not Outliving Your Savings

July 2016
Money Magazine published a list of five ways retirees and those who are still working can reduce the odds of outliving their savings. Read more »

Index Funds Influence Activist Investors

July 2016
The presence of large passive shareholders, meaning sponsors of index funds, influences not only the actions of activist shareholders, but also what changes they are successful in pushing for. Read more »

Work Longer to Live Longer

June 2016
Researchers who looked at the impact that retirement age had on longevity found that early retirement may be a risk factor for mortality. Read more »

The Spending Patterns of Older Adults

June 2016
Spending patterns do not significantly change for many categories until person reaches age 75. After 75, spending drops significantly. Read more »

It Can Make Sense to Have Several IRAs

June 2016
While it is a good rule of thumb to keep the investing process relatively simple, in certain cases adding some complexity can actually work to an investor’s advantage. Individual retirement accounts are one such example. Read more »

Growth in Corporate Cash Balances Isn’t Negative

June 2016
The cumulative cash balance of non-financial companies in the S&P 500 index totaled an estimated $2.1 billion as of October 31, 2015. There is not a single reason for the large cash balances; rather, there are many different reasons, some of which contradict commonly held beliefs. Read more »

A Telephone Call Is Not Enough to Change a Beneficiary Designation

May 2016
Merely calling to request a change in the beneficiary may not be enough to effectuate it. Rather, there must be compelling evidence proving a change was desired. Read more »

The First Five Things to Do at Retirement

May 2016
The American Grandparents Association asked 15 certified financial planners (CFPs) what five things should be done when a person retires. Read more »

Short Selling Found to Lead to Higher Returns

May 2016
Three researchers found that short interest (the percentage of shares sold short) is a better indicator of future returns than than many other financial metrics. Read more »

Delaying Planned Retirement Leads to Healthy Behaviors

May 2016
An analysis of middle-aged Italian men showed that even a one-year postponement of the planned retirement age increases the likelihood of exercising regularly as well as refraining from smoking and drinking regularly. Read more »

Eight Ways Women Can Take Charge of Their Retirement

April 2016
A survey conducted by the Transamerica Center for Retirement Studies found women tend to lag behind men in terms of saving and planning for retirement and offered eight suggestions for how women can take charge of their retirement plans. Read more »

New Proposed Reporting Rules for Estates

April 2016
The Internal Revenue Service issued proposed and temporary rules for the reporting of estate assets that require consistency between the recipient’s basis in certain property acquired from the decedent and the value determined for federal estate tax purposes. Read more »

Advisers With Records of Misconduct Often Rehired

April 2016
Close to half (44%) of advisers who left their job following a misconduct disclosure were able to find employment within the same year. And financial advisers who engaged in misconduct were five times as likely to do so again as the average adviser. Read more »

The Independence of the Board Chairman Affects CEO Pay

April 2016
A strong link exists between CEO pay and how independent the chair of the board is: Compensation for the chief executive officer is highest when an “insider” holds the board chairmanship. Read more »



Past Issues