AAII

Tax-Advantaged Income From Muni Closed-End Funds and ETFs
August 2026 by John Deysher
Closed-end muni bond funds or muni bond ETFs may make sense for those in high tax brackets in search of income.

What to Do When You Get a Large Windfall
August 2026 by Sam Levine
Regardless of where newfound wealth comes from, it’s important to prepare to manage it properly.

It’s Time for Your Midyear Financial Checkup
July 2026 by Sam Levine
Use this convenient midyear checklist to keep your finances on course.

The PRISM Wealth-Building Process: Putting It All Together
July 2026 by Charles Rotblut
PRISM helps you develop a well-defined personalized plan for achieving your financial goals.

Mapping the Safe Zone of Retirement Withdrawal Rates
June 2026 by Craig Israelsen
An analysis of three retirement portfolios over 100 years addresses the tension between portfolio longevity and lifestyle goals.

Better Analyze Your Brokerage Account by Syncing It to AAII’s My Portfolio
May 2026 by Charles Rotblut
Use the flexibility of My Portfolio to customize your analysis of broker holdings with a secure connection.

Choosing an Equity Portfolio You Can Live With—for Life
May 2026 by Paul Merriman
The path matters as much as the returns themselves. The goal is to find a path smooth enough that you will stay on it.

Historical Insights on Investing During Geopolitical Conflicts
May 2026 by Charles Rotblut, Cynthia McLaughlin, Doug Gerlach
While the fear of the unknown is always present, investors have to look past the headlines.

Big Improvements to My Portfolio and the AAII Stock Screens
April 2026 by Charles Rotblut
Visit the AAII Investor Hub to experience the new features of the AAII Stock Screens and My Portfolio.

Equal Weighting Across Market-Cap Sizes Beats a Total Market Fund
April 2026 by Craig Israelsen
Over 25 years, the growth of a $10,000 portfolio equally weighted between large, mid-size and small stock funds was more than $3,000 higher than that of a total stock market index fund.

Dollar-Cost Averaging Versus Lump-Sum Investing: Which Builds More Wealth?
March 2026 by Gregg S. Fisher
In a test of rolling 20-year periods since 1926, lump-sum investing outperformed dollar-cost averaging 73% of the time.

Asset Class Returns: Highest Returns for International Stocks Since 2012
February 2026 by Charles Rotblut
Developed country stocks saw their returns bounce back in a big way last year.

Your Guide to the New AAII Investor Hub
January 2026 by Charles Rotblut
AAII’s new Investor Hub brings your portfolios, watchlists and research together in one place.

Fed Signals That Investors Should Watch and What They Mean
November 2025 by Charles Rotblut, Gerald R. Jensen, Robert R. Johnson, Cynthia McLaughlin
Incorporating Federal Reserve policy shifts into an investing model rooted in 12 market anomalies.

Investing for Life on the Smoother Path
November 2025 by Chris Pedersen
The power of using a 50/50 combination of a target-date fund and U.S. small-cap value over 40 years of saving for retirement.

A Magic Allocation Recipe: Mixing Factor Investing Into a 60/40 Portfolio
October 2025 by Paul Merriman
Combining a classic stock/bond split with an enhanced equity allocation can add up to more than the sum of the parts.

Power Up Your Portfolio With AI: A Practical Guide for Individual Investors
October 2025 by Wayne A. Thorp
AI tools like ChatGPT and Claude can be used to organize your portfolio, run “what-if” scenarios and test rebalancing strategies.

Understanding the Performance Measurement Enigma
October 2025 by Craig Israelsen
Why the most common method to calculate fund performance does not reflect how most people invest.

Is 4.7% the New Safe Retirement Withdrawal Rate?
August 2025 by Charles Rotblut, William Bengen, Cynthia McLaughlin
William Bengen’s latest research shows that adding asset classes allows for a higher withdrawal rate in retirement than 4%.

Supercharge Your Portfolio With a Nontraditional Index Fund
July 2025 by Paul Merriman
The payoff of a custom index approach that takes advantage of academic research can be substantial.

Revisiting the Use of ETFs to Construct an S&P 500 Portfolio
June 2025 by Craig Israelsen
Comparing the performance of an equally weighted sector portfolio against an S&P 500 index fund over a 20-year period.

Want More Retirement Income? Lower Your Portfolio Fees
April 2025 by Craig Israelsen
Retirees who reduce their portfolio costs by using lower-cost funds realize larger withdrawals and ending wealth.

Using the Level3 Withdrawal Strategy to Achieve Growth and Stability
March 2025 by Charles Rotblut
Protecting the assets needed in the near future from market downturns allows you to balance risk and return in a rational way.

Which Protects Your Retirement Better: Rebalancing or Buffer Strategies?
March 2025 by Charles Rotblut
A comparison of two approaches to handling withdrawals in your retirement portfolio.

It's Hard to Be Great at Everything, Including Investing
November 2024 by Chris Pedersen
Although none of us, or our portfolios, can succeed all the time in all circumstances, we can all strive to improve our fit.

Meeting Your Asset Allocation Needs With Schwab Funds and ETFs
November 2024 by Cynthia McLaughlin
Charles Schwab offers funds that could make suitable options for AAII’s Asset Allocation Models.

When Diversification Takes a Back Seat in Index Funds
November 2024 by Brian Haughey
A new policy of some index funds to allow nondiversification status exposes investors to concentration risk.

12 Hidden Lessons From Investment History
October 2024 by Paul Merriman
Investors who are willing to learn from nearly a century of data can discover some important takeaways.

Finding the Right Retirement Allocation and Withdrawal Strategy
October 2024 by Christine Benz, Cynthia McLaughlin
A bucket approach provides income and growth in retirement, but flexibility with withdrawals is also key.

Striking the Right Balance Between Growth and Value Stocks
October 2024 by Craig Israelsen
A look at historical performance sheds light on whether favoring growth or value stocks makes a difference.

Using Vanguard Funds and ETFs for Your Asset Allocation Needs
September 2024 by Cynthia McLaughlin
Vanguard offers a variety of mutual funds and ETFs that can be used for AAII’s Asset Allocation Models.

Filling Your Asset Allocation Needs With T. Rowe Price Funds and ETFs
August 2024 by Cynthia McLaughlin
The T. Rowe Price family offers funds that could make suitable options for AAII’s Asset Allocation Models.

Maximizing Retirement Income With Asset Location
August 2024 by Charles Rotblut
While smart asset location can reduce your tax exposure in retirement, be sure not to let the tax tail wag the portfolio dog.

Meet Your Investing Challenges Through a New Learning Experience
August 2024 by Jenna Brashear
AAII’s Essential Investing (EI) Course offers essential financial education and practical tools for both newcomers and seasoned investors through modules, videos and interactive sessions.

Six Steps for a Successful Midyear Portfolio Review
July 2024 by Charles Rotblut
A midyear review differs from both the daily look you may give your portfolio and the more comprehensive annual review.

Active Investors Can Still Win in “Efficient” Markets
June 2024 by Brian Haughey
To achieve above-average returns, investors need to be better at interpreting information than the average investor.

How Best to Mitigate Sequence Risk at Retirement
June 2024 by Craig Israelsen
A few modest guidelines will naturally insulate a retirement portfolio from both sequence and size of returns risk during the early years of portfolio withdrawals.

Discipline and Diversification: Two Big Keys for Investor Success
May 2024 by Omar Beirat
Staying the course, especially during periods of volatility, leads to more favorable outcomes.

Meeting Your Asset Allocation Needs With BlackRock Funds and ETFs
May 2024 by Cynthia McLaughlin
AAII’s Asset Allocation Models can be followed by choosing among these funds from the BlackRock family.

Winning the Battle Against Investment Fees and Biases
May 2024 by Paul Merriman
Arm yourself with the tools you need in the fight to keep as large a share as possible of your investment returns.

Five Key Markers Pointing to Successful Stock Investing
April 2024 by Charles Rotblut
Certain factors put institutional investors at a disadvantage to a disciplined individual investor who follows a consistent, well-defined approach to investing.

Tempering the Risks of Market-Cap Weighting
April 2024 by Craig Israelsen
Genuine diversification across the various segments of the U.S. equity market is a prudent investment philosophy.

How Rebalancing Helps When Downturns Strike Early
March 2024 by Charles Rotblut
Retirees making withdrawals from diversified portfolios who rebalanced had a better outcome than those who did little to preserve their allocation weightings.

The Power of Holding Some Cash in a Portfolio
March 2024 by Brian Haughey
An allocation to cash can make sense in many portfolios both to reduce risk and, for retirees, to facilitate increased risk.

Systematic Investing Offers More Discipline But Also More Challenges
December 2023 by Grace Malone
Following data-driven strategies allows investors to avoid behavioral errors in decision-making, but these tools are frequently misused and lack adaptability to changing circumstances.

Five Approaches for Allocating Your Retirement Portfolio
November 2023 by Charles Rotblut
Strategies that range from maintaining a high equity allocation to annuitizing fixed expenses all have their proponents.

The Relationship Between Stock Market Volatility and Returns
October 2023 by Craig Israelsen
Less volatility isn’t always a good thing, especially when considering the returns that follow periods of high volatility.

Using a Portfolio Tracker to Follow Your Current and Potential Investments
September 2023 by AAII Staff
Watchlists allow you to keep tabs on the securities you own and those you are interested in. How to use AAII's My Portfolio to follow stocks, funds and ETFs.

Using Fidelity Funds to Fill Your Asset Allocation Needs
September 2023 by Charles Rotblut
Even if you are limited to choosing among Fidelity funds, you can still build a portfolio based on one of AAII’s allocation models.

Why It Makes Sense to Pair Momentum With Value in a Portfolio
September 2023 by Dan Villalon
Stocks exhibiting positive momentum and value characteristics offer superior expected returns over ones that only look good on one of the two dimensions.

Design Your Portfolio With the Worst 2% of Times in Mind
August 2023 by William Bernstein
A “suboptimal portfolio” that you can tolerate is better than an “optimal” one that you can’t stick with.

Five Steps for Conducting a Midyear Portfolio Review
July 2023 by Charles Rotblut
A midyear review is useful for ensuring your portfolio remains on track to achieve your financial goals. How to go about it.

Four Tax Strategies for Retirees
July 2023 by Wade Pfau
Strategic tax planning alongside delayed Social Security claiming can increase portfolio longevity and legacy in retirement.

Incorporating Equal-Weighted Funds Into Your Allocation
June 2023 by Charles Rotblut
Equal-weighted funds hold the same securities as similar market-cap-weighted funds but in different proportions, reducing stock-specific risk.

Key Numbers for Your Retirement Prep Checklist
June 2023 by Craig Israelsen, Jason R. Parker
You can retire with confidence by estimating four numbers that are used to calculate a Secure Income Score.

Investing for a Child’s or Grandchild’s Lifetime
April 2023 by Paul Merriman
Any plan to help a young family member provide for their future starts with the most important component: time.

Measuring Performance 10 Years at a Time
April 2023 by Craig Israelsen
Over the course of rolling 10-year returns since 1926, the performance of three multi-asset portfolios could be similar, widely different and then similar again.

Rebalancing to Navigate Bear Markets and Sequence Risk
March 2023 by Charles Rotblut
Periodically adjusting allocations back to intended targets lessens the magnitude of swings in a portfolio’s returns.

Tilting AAII's Asset Allocation Models to Match Your Growth or Value Style
March 2023 by John Bajkowski
A look at index mutual funds and ETFs that move outside of the neutral blended style by adding a focus on growth or value.

Exposure to the Size Factor Drives Equal-Weight Outperformance
January 2023 by Jack Gilleland
Examining the key drivers of equal-weighted portfolios outperforming value-weighted portfolios over multiple decades.

Learning to Manage the Myriad Risks in Your Portfolio
January 2023 by John Deysher
If recent events have raised your stress levels, now is the time to review your portfolio for any of the potential risks.

Putting Your Portfolio Back on Track Following a Bear Market
January 2023 by Charles Rotblut
Actionable steps to improve your odds of successfully reaching your goals when a down market affects your portfolio.

The Importance of Filtering Out the Urge to Trade
January 2023 by Charles Rotblut, Bob Pisani
How one longtime market observer became a big believer in behavioral finance over the years.

Index Fund Options for AAII's Asset Allocation Models
November 2022 by Charles Rotblut
While we use Vanguard funds for tracking purposes, they are not the only option when using the allocation models as a guideline for your own portfolio.

Double Your Lifetime Purchasing Power in 20 Minutes
October 2022 by Chris Pedersen
Taking advantage of your workplace retirement plan can make a big difference in your end balance and spending capacity.

Why You Should Consider Volatility When Building a Portfolio
October 2022 by Craig Israelsen
One observation from looking at six model portfolios is that focusing on the volatility of your portfolio gives you a more reliable measure of how it is actually behaving.

Pains and Gains From Small-Cap Value Stocks
September 2022 by Paul Merriman
Combining small-cap value and the S&P 500 can provide higher returns and a less painful ride over the long term.

How Individual Investors Use Mutual Funds and ETFs
August 2022 by Charles Rotblut, Jean Henrich, Anine Sus, Issac Deleon
Insights from experienced AAII members on what kinds of funds they choose and why. Plus, lessons they’ve learned along the way.

Level3 Passive Portfolio Transitions to Asset Allocation Models
August 2022 by John Bajkowski, Charles Rotblut
Combining elements of AAII’s fund models to capture factor, style and objective tilts that work for you.

Ways to Boost Returns Following a Change to the S&P 500 Index
August 2022 by Jack Gilleland
Passive funds tracking market-capitalization-weighted indexes like the S&P 500 index generally buy high and sell low as they attempt to mimic changes made to the index.

Dealing With Inflation in a Retirement Portfolio
June 2022 by Craig Israelsen
The RMD is a built-in inflation adjuster that allows retirees to be more cautious in their asset allocation if they so choose.

Addressing the Challenges ESG Investors Face
May 2022 by Charles Rotblut, Larry Swedroe, Anine Sus
Because ESG ratings aren’t standardized and there are different definitions for green and brown stocks, socially conscious investing is necessarily a very personal decision.

Strategies for Determining How Much You Can Spend in Retirement
May 2022 by Charles Rotblut, Wade Pfau
William Bengen’s floor and ceiling rule is one approach that is simple and works fairly well.

Retirement Allocation Comparison With Vanguard Funds
April 2022 by Craig Israelsen
While there is no single “correct” allocation to equities in a retirement portfolio, it is clear there needs to be a material commitment.

The Pains and Gains of Investing
April 2022 by Paul Merriman
A look at hypothetical performance for five simple equity portfolios can help you choose which risk measures matter the most to you.

A New Perspective on Withdrawal and Allocation Strategies for Retirees
March 2022 by Wade Pfau
Factoring in worst-case scenarios for your early years of retirement helps ensure your portfolio lasts.

Be a Wiser Investor Than the Crowd
March 2022 by Brian Haughey
If you hope to outperform you need to have some edge.

The Importance of Rebalancing for Retirees and Other Investors
March 2022 by Charles Rotblut
Analysis of rolling 25-year periods showed rebalancing can lead to greater ending wealth for a hypothetical retirement portfolio by shifting dollars from bonds to equities during bear markets.

Preferred Stocks Explained
November 2021 by Brian Haughey
As a hybrid security, preferreds have higher yields than bonds and offer an attractive risk/return tradeoff for investors searching for yield.

Actionable Steps That Will Get You to Your Life Goals
October 2021 by Jack Brennan
Meeting your lifetime goals involves having a good portfolio balance and diversification, making wise decisions about income and putting a solid financial plan in place.

Effectively Monitoring Your Portfolio
October 2021 by Charles Rotblut
The PRISM Wealth-Building Process helps you establish metrics to analyze your portfolio and make changes in line with your long-term allocation.

Good Portfolio Teammates Boost Returns and Reduce Downside
October 2021 by Craig Israelsen
A look at the positive results that could be achieved by partnering a balanced fund with a low-correlated fund.

Meaningful Diversification Can Lead to Higher Returns
October 2021 by Charles Rotblut, Chris Pedersen
The author of “2 Funds for Life” discusses the trick to diversification, why holding a small number of funds works and the power of making “nudge” withdrawals.

How to Score a Retirement Home Run
September 2021 by Paul Merriman
A look at hypothetical returns using four different scenarios reveals the optimal combination of assets and withdrawal strategies.

Level3 Passive Portfolio Up Strongly Year to Date
September 2021 by John Bajkowski
Value stocks, smaller-company stocks and real estate segments have performed well this year after lagging large-cap growth approaches over the last decade.

Guidelines for Selecting Stocks for Your Portfolio
August 2021 by Charles Rotblut
The choice of a stock—and even whether to hold individual stocks instead of mutual funds or ETFs—should be reflective of each investor’s investment management preferences.

Personalizing Your Glide Path to Avoid Financial Peril
August 2021 by Jason M. West, Michael E. Drew
The use of observed income profiles can be efficiently incorporated into glide path designs to maximize retirement income sufficiency.

The Advantages and Risks of Closed-End Funds
August 2021 by Matthew Crouse
For those seeking to earn higher yields than available from mutual funds, closed-end funds can be enticing due to their low-cost leverage and higher dividend yields.

Using Bond Ladders and Income Annuities for Retirement Income
July 2021 by Aaron Brask
A discussion of two specific tools investors can use in retirement to generate fixed cash flows and manage relevant risks.

How Long Is a Long Run?
June 2021 by Craig Israelsen
An examination of various investing periods reveals the ones that come the closest to achieving returns seen in a 95-year period.

8 Factors That Influence Your Investing Management Preferences
May 2021 by Charles Rotblut
Knowing your preferences for carrying out your portfolio strategy allows you to focus only on what you will consider and ignore the investments that aren't a good fit for you.

How the World's Greatest Investors Think
May 2021 by William Green
Behaving differently and focusing on a simple idea with strict discipline are common threads that define investors who’ve become famous for their success.

The Building Blocks of a Successful Portfolio Allocation
April 2021 by Charles Rotblut
The mix of assets held primarily determines the returns you will realize. The other keys are sticking to your strategy and making periodic adjustments to keep your allocations at the desired level.

The Impact of Asset Allocation on Retirement Income
April 2021 by Craig Israelsen
A look at the trade-offs in retirement using two popular withdrawal strategies if you build a more aggressive or more conservative portfolio.

There’s More to Portfolio Returns Than Just the Numbers
April 2021 by Paul Merriman
Relatively few investors understand all the most important ways they should look at performance.

Rebalancing Update: A Revised Allocation Plus Additional Insights
March 2021 by Charles Rotblut
Modifying the allocation did not alter the primary benefits of rebalancing: significantly lower volatility as well as smaller drawdowns relative to not rebalancing.

The Benefits of Building Your Own S&P 500 Portfolio Sector by Sector
November 2020 by Craig Israelsen
Investing in individual funds that represent the 11 sectors of the S&P 500 allows better control when withdrawing money in retirement.

What You Can Gain From Reading the Economic Tea Leaves
November 2020 by Brian Haughey
Comparing changes in given metrics and their relative performance allows us to assess if economic activity is accelerating or decelerating and adjust our portfolio allocations if desired.

The Price We Pay for Being Different
October 2020 by Chris Pedersen
There are definite short-term challenges we are likely to face when we pursue a “different” investing approach, which is why understanding and conviction are crucial.

Inflation: The Dormant Dragon
September 2020 by Craig Israelsen
If you believe that inflation will rear its ugly head again, it would be prudent to build a portfolio that has demonstrated an ability to defend itself against inflation.

The Four Asset Classes With Great Long-Term Performance
September 2020 by Paul Merriman
If you apply the lessons of the past 90 years, it’s reasonable to expect favorable returns from following simple strategies that combine a few key asset classes.

Helping Kids and Grandkids Become Investors
April 2020 by Craig Israelsen
Teach someone else what you have learned about investing. Give them the gift of time to experience the power of saving and the magic of compounding.

How Schwab Invests, and His Views on the Broker Industry
March 2020 by Charles R. Schwab
Insights from the discount broker pioneer about what he invests in and where he sees his industry going.

Making Sense of Investment Risk
March 2020 by Paul Merriman
While you can’t completely avoid risk when investing, there are practical ways to protect yourself from specific emotional, behavioral and financial risks.

Rebalancing Update: First Signal in Six Years to Adjust Allocations Issued
March 2020 by Charles Rotblut
A signal to rebalance one of our model portfolios was given following last year’s big run up in large-cap stocks.

How 10 Years at AAII Has Influenced Me
January 2020 by Charles Rotblut
A look at how my thinking has evolved over the last decade and lessons I’ve learned from AAII members, colleagues and contributors.

The Relationship Between a President's Party Affiliation and Stock Market Returns
January 2020 by Charles Rotblut, Lubos Pastor
Why we tend to elect Democratic presidents in times of trouble and Republican presidents in good times.

Benchmarking: The Art of the Science
November 2019 by Craig Israelsen
There can be a serious disconnect between investors and the indexes they reference—which can lead to a great deal of benchmarking confusion.

Clarifying the Purpose of Diversification
September 2019 by Craig Israelsen
Broad, multi-asset-class diversification allows us to produce an equity-like return while substantially reducing the volatility of returns in the portfolio.

Digging Deeper Into Diversification
September 2019 by Paul Merriman
Although the S&P 500 index should be regarded as the base of an equity portfolio, small-cap value is a more profitable asset class over the long term.

A Question of (Re)balance
August 2019 by Sam Stovall
Seven rebalancing strategies are evaluated to see what frequency offers the best risk-adjusted return.

Stepping, Gradually, Back Into the Market
April 2019 by Craig Israelsen
Diversifying across asset classes and systematically investing equal dollar amounts over a period of time can reduce the risk of a sudden drop in the stock market.

Will Stocks Always Outperform Bonds Over a Multi-Year Period?
April 2019 by Brian Haughey
Investors price stocks for higher return because of their higher risk and dividend growth, but downturns can make bonds more favorable because of their contractual payments.

Rebalancing Update: The Market's Volatility Eliminated the Need to Adjust Allocations
March 2019 by Charles Rotblut
The volatility incurred in 2018 was high enough to bring the equity allocations back toward their targeted range, preventing the need for rebalancing.

To Beat the Market, Invest Differently Than the Market
March 2019 by Charles Rotblut, James O'Shaughnessy
Decisions based on less than five years of performance returns are mostly based on noise. Many strategies look good over shorter periods, but fare much worse over longer periods.

Illustrating the Value of Retirement Accounts
November 2018 by Aaron Brask
Two examples show the considerations to be taken into account when deciding between a taxable account, a traditional IRA and a Roth IRA.

Revisiting the Risks of Retirement Spending Rules
November 2018 by Charles Rotblut
Find out the risks of spending only portfolio income, spending returns or making inflation-adjusted withdrawals.

Getting the Same Return With Less Risk: The Power of Factors
October 2018 by Charles Rotblut, Larry Swedroe
Using factors to diversify a portfolio can pull in extreme annual returns without lowering long-term expected returns.

Simplified Expectations for Normal Investors
October 2018 by Brian Portnoy
Focusing on four foundational elements—growth, pain, fit and flexibility—can help to establish reasonable expectations about potential outcomes.

Observations From Decades of Tracking Investment Newsletters
August 2018 by John Bajkowski, Charles Rotblut, Mark Hulbert
There is often little persistence in outperformance among newsletters, but the good long-term performers have shown consistency in sticking to their strategies.

Diversifying Through Reinsurance and Marketplace Lending Interval Funds
July 2018 by Larry Swedroe
Alternative investments such as reinsurance and marketplace lending provide diversification through exposure to different forms of risk.

For Bucket Portfolios, the Devil Is in the Details
July 2018 by Christine Benz
Guidance on implementing a bucket strategy in a real-world retirement portfolio, including portfolios with more than one type of account.

Quantifying the Value of Retirement Accounts
June 2018 by Aaron Brask
The golden goose of retirement accounts is the return boost attributable to avoiding taxes on capital gains, dividends and bond interest.

A Look Back at History: Lessons From the Financial Crisis
May 2018 by Julie Jason
Three columns that provide a flashback to the last bear market and contain lessons that are still very valid today.

Picking a Rate of Return to Use for Long-Term Planning
May 2018 by Charles Rotblut
A review of the historical data shows why long-term investors should look to long-term averages when setting return expectations.

The Impact of Saving Versus Return on Wealth
May 2018 by Craig Israelsen
Younger savers benefit more from seeking higher returns, while older investors benefit more from increasing their savings rates.

Rebalancing Update: 4.5% Withdrawal Rate and Rolling Periods
April 2018 by Charles Rotblut
Increasing the withdrawal rate led to bigger distributions, but lower ending wealth. Altering the investing period also has an impact.

Insights on Using the 4% Withdrawal Rule From Its Creator
January 2018 by Charles Rotblut, William Bengen
Bill Bengen explains why he now suggests a 4.5% withdrawal rate and what the biggest threat to his withdrawal strategy is.

The Level3 Withdrawal Strategy to Maximize Your Long-Term Wealth
November 2017 by John Bajkowski, James B. Cloonan
Creating a cash bucket with up to four years of expenses allows a retiree to avoid selling stocks during periods of down markets.

Strategies for Managing Required Minimum Distributions
October 2017 by Robert Carlson
Retirees have options when it comes to RMDs, including Roth IRA conversions, trusts, charitable donations, life insurance and emptying the IRA early.

Target Wealth: A Better Bet for Achieving Wealth Goals
October 2017 by Peter A. Forsyth, Kenneth R. Vetzal, Graham Westmacott
Shifting to a conservative allocation once a targeted level of wealth is reached reduces risk without sacrificing financial goals.

Minimizing Taxes With Asset Allocation
September 2017 by Stephen E. Wilcox
Strategically taking into consideration both tax laws and the tax-efficiency of an investment will maximize aftertax returns.

The Impact of Expense Ratios on Retirement Income
September 2017 by Craig Israelsen
Simply lowering investment expenses on a $1 million portfolio by 0.01% boosts annual portfolio income by more than $200 per year.

Using Reverse Mortgages to Mitigate Periods of Poor Returns
September 2017 by Wade Pfau
A coordinated strategy of using reverse mortgages can both support higher withdrawal rates and allow for a smaller allocation to cash.

Allocating to Manage Risk: A Case Study
July 2017 by Charles Rotblut
The downside risk a retired couple’s portfolio faces is examined, along with a strategy to reduce the damage of turbulent market conditions.

Solving the Problem of Retirement
July 2017 by Paul Merriman
Retirement places potentially unlimited demands on finite savings, but there are three actions investors can take to mitigate the problem.

A Former Hedge Fund Manager’s Contrarian Strategy
June 2017 by Walter H. Weil
Stocks, bonds and cash are all assets to consider; Robert Shiller’s CAPE ratio can serve as a trigger to rebalance in and out of stocks.

How to Take Advantage of Risk Factors
June 2017 by Charles Rotblut
Factors have been proven to lead to higher returns. What you need to know about tilting your portfolio toward them.

Power Your Portfolio With Value
June 2017 by Paul Merriman
An all-value portfolio realized higher long-term returns and its excess performance can even allow for a bigger allocation to bonds.

The Trinity Portfolio: Combining Diversification, Tilts and Trend-Following
May 2017 by Mebane Faber
A strategy for combining global exposure, value and momentum, and both buy-and-hold and trend-following into a single portfolio.

Asset Allocation, RMDs and Portfolio Survival
April 2017 by Craig Israelsen
A diversified portfolio not only increases return relative to risk, it can also boost the amount of income provided by RMDs.

Factors Allow Investors to Think Differently About Diversification
April 2017 by Larry Swedroe
Tilting a portfolio to a small number of factors, including value and size, can increase returns while at the same time reducing risk.

Rebalancing Update: How Frequently Allocations Should Be Adjusted
March 2017 by Charles Rotblut
By allowing some fluctuation in the allocations, the models tracked have, on average, required rebalancing just once every three years.

The Next Generation of Socially Responsible Investing
March 2017 by Lorne Abramson, Elana Lieberman
Socially responsible investing has evolved to include “best-in-class” companies and several low-cost investment options.

Vanguard's Dynamic Spending Strategy for Retirees
January 2017 by Colleen M. Jaconetti, Francis M. Kinniry, Michael DiJoseph, Zoe B. Odenwalder
This hybrid approach adjusts withdrawals within preset limits, allowing retirees to benefit from good markets and more easily weather bad markets.

Asset Returns During High and Low Inflationary Periods
December 2016 by Craig Israelsen
Large-cap stocks have performed well when inflation has been low, while commodities, real estate and small-cap stocks have led when inflation was high.

Competition Has Made Indexing a Winner’s Game
November 2016 by Charles Rotblut, Charles D. Ellis
Better analysis, more trading and more professional investors have made it even easier to lose at active investing, and win by indexing.

Conversations on Picking Good Stocks and Funds
November 2016 by Harold Evensky
Commonsense guidelines for buying the best investment, and determining the difference between a good story and a good investment.

Active Management Stinks, But It Doesn't Have To
October 2016 by Daniel Crosby
Active approaches can be improved by incorporating some characteristics of passive investing, including low turnover and low fees.

Investing to Avoid the Consequences of Being Wrong
September 2016 by William Bernstein
Retirees should only risk the savings they don’t need; young investors should allocate as much to stocks as their risk tolerance allows.

A Manager’s Insights on Risk and Investing
July 2016 by Charles Rotblut, Karen Firestone
Right-sizing risk, right-timing risk, relying on knowledge and experience and applying appropriate skepticism can lead to better decisions.

Cash Flow and Allocation Strategies for Retirees
June 2016 by Charles Rotblut, Jane Bryant Quinn
A reverse mortgage can boost withdrawal rates if used correctly; plus, why index funds can simplify decisions regarding taking withdrawals.

Why a New Allocation Approach Is Needed
June 2016 by Charles Rotblut, James B. Cloonan
The traditional way of allocating portfolios costs investors significant wealth and fails to consider how risk actually occurs in the real world.

Insights on How to Manage a Concentrated Portfolio
May 2016 by Michael van Biema, Allen Benello
Investing in a small number of stocks requires a focus on margin of safety and valuations as well as the ability to invest for the long term.

Retirement Portfolio Survival: A 90-Year Study
May 2016 by Craig Israelsen
While a conservative allocation lasts 35 years at a 3% withdrawal rate, higher withdrawal rates require greater exposure to stocks.

Using Cash and Short-Term Bonds to Avoid Taking Losses in Retirement
May 2016 by Charles Rotblut, Jane Bryant Quinn
Combining a stock and bond allocation with cash and short-term bond funds can help a retiree better endure down markets.

Retirement Readiness Is Being Assessed in the Wrong Manner
April 2016 by Charles Rotblut, Moshe A. Milevsky
No consensus exists on an acceptable risk of outliving savings, and current models don’t reveal the magnitude of the shortfall retirees face.

Rebalancing Update: A Tiny Raise for Retirees
March 2016 by Charles Rotblut
Even with last year’s volatility, no rebalancing was required. Low inflation caused the withdrawal amounts to increase only slightly.

Six Questions With John Bogle
March 2016 by Charles Rotblut, John C. Bogle
The founder of Vanguard explains how investors can maximize long-term wealth and gives advice for how to get grandchildren interested in investing.

The Mathematics of Retirement Portfolios
January 2016 by Craig Israelsen
The amount saved, the allocation followed and the withdrawal rate chosen all determine how much retirement income a portfolio can safely provide.

Exploring the Optimal Equity Allocation Path for Retirees
December 2015 by David Blanchett
Whether it is better to increase or decrease equity allocations in retirement depends on both preferences and assumptions about future returns.

The Advantages of Simple Allocation Strategies
November 2015 by Wesley R. Gray
Complex strategies do not significantly outperform simpler ones, such as equal-weighting or a 60% stocks/40% bond mix.

How Big Is Longevity Risk?
October 2015 by Bob Collie
The uncertainty of how long a person will live poses negligible risk at younger ages and substantial risk at older ages.

Frontier Markets Offer Growth From a Very Diverse Set of Economies
September 2015 by Charles Rotblut, Laura Geritz
These smaller countries have strong growth prospects and companies that are often oligopolies or monopolies tied to multinational corporations.

Mathematical Support for Rising Equity Glide Paths
September 2015 by Luke Delorme
Increasing exposure to stocks in retirement can reduce the chances of running out of money and allow for a larger withdrawal rate.

Is Outperforming the Market Alpha or Beta?
July 2015 by Larry Swedroe, Andrew Berkin
Above-benchmark returns (“alpha”) are often achieved by weighting specific factors, calling into question the cost of active management.

Proxy Voting for Individual Investors
July 2015 by Robert Stein
Good corporate governance can improve returns and lower volatility. Guidelines on what to consider when voting your shares.

Valuation's Usefulness for Forecasting and Setting Asset Allocation
July 2015 by Javier Estrada
Valuation ratios provide useful long-term signals, but are rather useless in the short term and lead to higher transaction costs.

Building a Balanced Portfolio: An Unconventional Allocation
June 2015 by Alex Shahidi
A four-asset-class portfolio weighted by volatility performs as well as a traditional 60/40 portfolio, but with less volatility.

How Much Diversification Is Right for You?
May 2015 by Jordan Kimmel
Be careful about holding too few and too many stocks; seven to 10 stocks can be acceptable for investors willing to accept more volatility.

The Sequence in Which Returns Occur Affects Your Wealth
May 2015 by Charles Rotblut
The timing of positive and negative returns significantly impacts wealth, particularly if withdrawals are taken or other changes are made.

Increasing Retirement Withdrawal Rates Through Asset Allocation
April 2015 by Michael Kitces, Wade Pfau
The optimal equity allocation depends on market valuations, though a fixed 60% stock/40% Treasury bill allocation works well overall.

Nine Rules for Smarter Investing
April 2015 by Guy Spier
These guidelines for creating a better investment process are based on Spier’s own experience as a professional fund manager and value investor.

Rebalancing Update: Retirement Adjustments Necessary
April 2015 by Charles Rotblut
A retiree following the rebalancing model would have needed to rebalance at the end of 2014 because of the gains in large- and mid-cap stocks.

The Importance of Diversification in Retirement Portfolios
April 2015 by Craig Israelsen
Diversifying a portfolio among four primary asset classes allows for large withdrawals to be taken throughout retirement.

Converting to a Roth IRA Can Minimize RMDs
March 2015 by Judith Ward
Gradually converting traditional IRA assets into a Roth IRA can both increase lifetime wealth and reduce the total amount of taxes paid.

Lessons Learned From Many Years of Investing
March 2015 by H. Bradlee Perry
Doing the math, having a good understanding of market and economic history and paying attention to valuations are key to long-term investing success.

Choosing the Right Portfolio Allocation Approach for You
October 2014 by Charles Rotblut
This overview of six common asset allocation approaches will help you determine which method will work best for your portfolio.

Don’t Over-Rely on Historical Data to Forecast Future Returns
October 2014 by Charles Rotblut, William Sharpe
Historical risk may be a reasonably good predictor of future risk, but past returns are a rotten predictor of future returns.

Allocate by Market Weight (And Adjust for Personal Circumstances)
September 2014 by Charles Rotblut, William Sharpe
Weight your stock and bond allocations in accordance with the market if you want to take the risk incurred by the average investor.

Managing Cash Flow in Retirement
September 2014 by Harold Evensky, Deena Katz
Combining a year’s worth of cash with a long-term investment portfolio protects immediate needs while still enabling the portfolio to grow.

Real Returns Favor Holding Stocks
August 2014 by Jeremy Siegel
Stocks are good hedges against inflation, preserve purchasing power and, over long periods, are less risky than bonds.

How Much Small Cap Should Be in Your Portfolio?
July 2014 by John McDermott, Dana D'Auria
Small-cap stocks have historically realized higher returns, but there are reasons why an investor may not want to overweight small-cap stocks.

Peculiar Facts From 500 Years of Finance
May 2014 by Timothy Knight
Lesser-known but notable events that not only have led us to the present day, but also had an impact beyond the financial markets.

The Danger of Getting Out of Stocks During Bear Markets
May 2014 by Charles Rotblut
Panicking and pulling out of stocks during turbulent market conditions can have a significant and lasting negative impact on your wealth.

The Three Pockets Approach to Investing
May 2014 by Timothy McCarthy
Segmenting your portfolio into savings, investing and trading pockets can simplify the allocation process and better help you achieve your goals.

Reduce Stock Exposure in Retirement, or Gradually Increase It?
April 2014 by Michael Kitces, Wade Pfau
Starting retirement with a 30% allocation to equities and then gradually increasing it to 70% leads to a 95.1% probability of not outliving your savings.

John Maynard Keynes as an Investor: Timeless Lessons and Principles
March 2014 by John Wasik
A look at Keynes’ evolution from a spectator to a successful value investor and the godfather of behavioral finance.

My Investment Letter: Words of Advice for My Grandchildren
October 2013 by Charles D. Ellis
A letter from legendary investor Charles Ellis to his grandchildren, with 12 guidelines for how to become successful long-term investors.

Using the Bucket Approach With Your Retirement Portfolio
October 2013 by Christine Benz
By segmenting their portfolios based on when they will need the money, retirees can fulfill both short-term cash and long-term growth requirements.

Diversification’s Role as a Risk-Reduction Tool
September 2013 by Charles Rotblut, Richard Bernstein
The correlation among the assets you own, instead of the number, is what determines your portfolio’s diversification.

Protect Your Capital: Never Chase High Yield
July 2013 by Donald Cassidy
Buying high-yielding investments is a bet the market is wrong about the underlying risks. Find out what traits to look for in an income-producing investment.

Safe Withdrawal Rates and Certainty-Equivalent Spending
July 2013 by Druce Vertes
The size of initial withdrawal rates depends on a retiree’s willingness to accept both portfolio volatility and variability in his annual spending rates.

Addendum: Adjusting Retirement Withdrawals for Inflation
May 2013 by Charles Rotblut
An addendum to the May 2013 AAII Journal article “Taking Retirement Withdrawals From a Fund Portfolio” that takes inflation into account when calculating withdrawal amounts.

Taking Retirement Withdrawals From a Fund Portfolio
May 2013 by Charles Rotblut
A portfolio that could have been duplicated by investors is used to demonstrate how to take withdrawals and the potential pitfalls that are encountered.

A Pseudo-Life Annuity: Is There a Downside?
April 2013 by Robert Muksian
U.S. government STRIPS provide guaranteed income and, since they are purchased at steep discounts, will appreciate by the time of death.

Portfolio Rebalancing: Observations From 25 Years of Data
April 2013 by Charles Rotblut
Using a rebalancing strategy over the past 25 years would have boosted returns, lowered volatility and kept the balance in one asset class from being drained.

Why We Don’t Rebalance
April 2013 by Jason Hsu
A combination of risk-averse and risk-seeking behaviors as well as fears about backlash stop investors from rebalancing.

An In-Depth Look at the Tax Consequences of Asset Location
March 2013 by Kevin Trout
Prudently choosing whether to hold an investment in a taxable or in a tax-deferred account can increase your aftertax rate of return.

An Investor’s Guide to Smart Beta Strategies
December 2012 by Jason Hsu, Feifei Li, Vitali Kalesnik
Smart beta strategies differ from traditional market-capitalization-weighted indexes by taking advantage of value and small-company outperformance.

Rules of Thumb and Key Phrases: Gleaning the Nuggets of Truth
December 2012 by Vahan Janjigian, Stephen M. Horan, Charles Trzcinka
These 22 tidbits have an element of truth and carry the wisdom of experience. Included in these rules are suggestions about selling.

The Permanent Portfolio: Using Allocation to Build and Protect Wealth
December 2012 by Craig Rowland, J.M. Lawson
Based on Harry Browne’s methodology, this strategy holds four distinct asset classes to take advantage of varying economic states.

How Investors Miss Big Profits
October 2012 by Louis Harvey
Individual investors underperform the mutual funds they invest in, but they can take advantage of psychological behaviors to improve their returns.

Stocks vs. Bonds: Why and When?
September 2012 by Jason Brady
When choosing between bonds and stocks, investors should consider the enormous variation among individual assets within each asset class.

The Good Investor Rule: Focus on How Not to Lose Money
July 2012 by Steven Sears
Many investors place on emphasis on making money, but successful investors focus more on how not to lose money.

The Rationale for Investing in Emerging Markets
July 2012 by David Hale
Emerging market countries account for about 36% of global GDP, are experiencing faster growth and offer diversification benefits.

A Pseudo-Life Annuity: Guaranteed Annual Income for 35 Years
June 2012 by Robert Muksian
Investors can virtually guarantee a lifetime stream of income for their retirement years by creating a ladder of zero-coupon Treasury bonds.

How to Achieve the Right Asset Allocation
June 2012 by Sheldon Jacobs
Investors should emphasize making the correct asset allocation and diversification decisions, taking into account personal financial and family factors.

The Alternative Portfolio: Diversifying Away From a Traditional Allocation
June 2012 by Charles Rotblut
This portfolio has different return characteristics than a portfolio of large-cap stocks and long-term Treasurys but was capable of beating inflation.

Using Asset Allocation for Protection and Growth
June 2012 by Charles Rotblut, David Darst
Asset allocation involves both protecting assets and preserving purchasing power. Both can be accomplished through a balance of growth and defense.

Should You Dollar Cost Average or Lump-Sum Invest?
April 2012 by Sam Stovall
Since December 1999, dollar cost averaging has worked better for the S&P 500 index, but lump-sum investing has worked better for other indexes.

Updating Modern Portfolio Theory for Investor Behavior
April 2012 by Greg B. Davies, Arnaud de Servigny
The optimum portfolio is not only based on the expected risk and return of the investments, but considers an investor’s tolerance for risk.

Using Currencies to Diversify Your Portfolio
April 2012 by Axel Merk
Investing in currencies can reduce the overall risk profile of your portfolio, as currencies have different and less volatile returns than stocks and bonds.

Portfolio Rebalancing: Diversification, Risk Control and Withdrawals
March 2012 by Charles Rotblut
Rebalancing maintains the benefits of diversification, provides a hedge against behavioral mistakes and works with annual withdrawals.

Tax Breaks for Contributions of Appreciated Property
January 2012 by Julian Block
Donating appreciated assets to charities not only provides a tax deduction, but it also enables investors to sidestep capital gains taxes.

The Role of REITs for Long-Term Investors
January 2012 by Brad Case
Real estate investment trusts (REITs) offer diversification benefits relative to stocks, with correlations decreasing over time.

A Balanced Approach: Less Risk, But Lower Potential Return
December 2011 by Stuart Ritter
Combining stocks and bonds reduces volatility by 40% over an all-stock portfolio, but reduces annualized returns by 13.7%.

Balanced Fund Managers Discuss Portfolio Income
September 2011 by Charles Rotblut, Ned Notzon, Charles Shriver
Two T. Rowe Price portfolio managers explain what to consider when trying to strike a balance between bonds and dividend-paying stocks.

Adding Alternative Investments to a Stock/Bond Portfolio
July 2011 by Charles Rotblut, Phil DeMuth
The risks of a traditional 60% stocks/40% bonds portfolio can be lowered by adding funds that invest in real estate, commodities and hedge-fund strategies.

Best Practices for Portfolio Rebalancing
May 2011 by Colleen M. Jaconetti, Yan Zilbering, Francis M. Kinniry
A strategy that combines regular monitoring with rebalancing at certain thresholds provides a harmony between allocation goals and cost minimization.

Managing the Mental Aspect of Investing
May 2011 by Meir Statman
Investors should consider whether they are being influenced by a good or bad herd behavior and who is on the other side of a trade.

Investing for Retirement Requires a Disciplined Approach
April 2011 by Jerome Clark
Maintaining a substantial equity exposure before and during retirement helps you achieve long-term financial goals.

The Advantages of Diversification and Rebalancing
April 2011 by Charles Rotblut
Annually rebalancing to maintain proper diversification increases returns and lowers volatility.

Stock Price Movements Are Unpredictable
March 2011 by Charles Rotblut, Burton Malkiel
The author of "A Random Walk Down Wall Street" explains why investors should put at least the core of their portfolios in index funds.

A Time for Time Deposits
December 2010 by James H. Gilkeson, Gary E. Porter, Stanley D. Smith
Many certificates of deposit (CDs) are offering higher yields than Treasuries with similar maturities, and they meet investors’ need for safety.

International Diversification: Why It Still Makes Sense
December 2010 by Bernard R. Horn
History shows that international stocks provide diversification benefits over the long term, even though correlations become close during times of crisis.

Capital Pains: Rules for Capital Losses
September 2010 by Julian Block
The tax code limits the deduction that can be taken for net capital losses, but it also allows losses to be offset by gains from assets other than investment securities.

Preferred Stocks: An Overlooked Alternative
August 2010 by John Deysher
Preferred stocks can augment income strategies with priority access to dividends, but expose investors to interest rate and credit risk.

Allocation in Retirement: A Flat Glide Path Always Make Sense
July 2010 by Josh Cohen
For any downward sloping glide path of equity allocation once you hit retirement, a flat one can be created that is better in terms of its risk and reward trade-off.

How Much Should You Have in Equities Until Retirement?
July 2010 by Jerome Clark
A more conservative investment strategy might not do as well as a more aggressive strategy.

Sustaining Wealth in an Uncertain Environment
June 2010 by Charles Rotblut, Axel Merk
Successful wealth management involves controlling expenses, finding good values and assessing how much risk can be taken.

Figuring Taxes on Social Security Benefits
May 2010 by Julian Block
Investment decisions can impact how much of your Social Security benefits will be taxed.

Does Social Investing Generate Higher Returns?
April 2010 by Meir Statman, Denys Glushkov
Companies with high social responsibility ratings outperformed companies with low ratings, but to get the highest returns, you should not shun shares of any company.

Diversification: A Failure of Fact or Expectation?
March 2010 by Sam Stovall
Did diversification fail investors during the most recent bear market or did investors simply take on too much risk? Sam Stovall looks at the historical trends to find answers.

Do's and Don'ts of IRA Investing
March 2010 by Robert Carlson
Complicated and restrictive rules can lead to unintended problems. Learn which assets and transactions are allowed and which are not in an IRA.

New Rules for Converting to a Roth IRA
January 2010 by William Reichenstein, Douglas Rothermich, Alicia Waltenberger
The income restrictions have been lifted, but does converting to a Roth IRA make sense for you? Plus, find out why a recharacterization can give you even more flexibility for managing your tax exposure.

The Portfolio Review: Why It Is Important and How to Do It
January 2010 by Julie Jason
Since regular reviews are the foundation of successful investing, resolve to evaluate your portfolio. Julie Jason explains how.

How to Create Your Own Pension: A Closer Look at Immediate Annuities
November 2009 by Julie Jason
How would you like to have lifelong income even after you retire? That’s what it’s like to receive a pension. What if you don’t have one? One option is to buy a product that will create one for you—an “immediate annuity,” which is the oldest product of its kind in the marketplace.

Retirement Plans: Evaluating the New Roth IRA Conversion Opportunity
November 2009 by Christine S. Fahlund
Starting in 2010, investors have the option of converting all or part of their traditional IRA into a Roth IRA regardless of how much they earn. Whether you are years away or approaching retirement, you may find it worthwhile to consider a conversion--either for yourself or to potentially leave tax-free assets to heirs.

Surviving a Loss: Smart Steps for Coping With Widowhood
August 2009 by Karen C. Altfest
If you have recently lost your spouse, you are confronting many changes. Because financial planning at this stage involves both a person's emotional state and financial state, many widows are pushed to make unwise decisions, or to make changes before they are ready. Smart steps for widows to take when the time is right.

Bear Market Grads: What You Should Learn From the Financial Crisis
July 2009 by William Reichenstein, Larry Swedroe
Stock indexes remain substantially below their peaks, banks are in lousy shape, and governments around the world are running huge deficits. The market has been a brutal teacher, but there are important lessons to be learned from the crisis--and positive steps investors can take going forward.

Bear Market Start May Offer a Strong Finish for Young Investors
July 2009 by Christine S. Fahlund
Would you rather start investing for retirement during a bull market or a bear market? While some young investors may be warily viewing stocks right now, in the past such downturns have presented investors with rare opportunities to benefit from healthy future returns. A new study by T. Rowe Price.

Due Diligence: 10 Steps to Avoiding Ponzi Schemes and Financial Fraud
April 2009 by Karen C. Altfest
The uncovering of Bernie Madoff's Ponzi scheme, and the fraud committed by several other financial hucksters, highlights the importance of asking the right questions before selecting an advisor or participating in an investment. Ten questions to ask, and red flag warning signs of the potential for trouble.

Retirement Income: Repairing the Damage to Assure the Flow
February 2009 by Christine S. Fahlund
If you are living off your retirement savings and have suffered a severe portfolio loss, what is your best course of action to ensure your savings can be sustained? A new T. Rowe Price retirement income study compared various withdrawal strategies.

Financial Professional Terms: What They Mean and Why You Should Care
November 2008 by William Reichenstein
Broker, financial planner, investment advisor and wealth manager are just a few of the common terms used to describe various financial professionals. Many individuals do not have a clear understanding of what distinguishes one from another. A look at the terms and differences in duties owed to clients.

Your Portfolio: Maintaining Perspective
November 2008 by John Markese, Maria Crawford Scott
Financial turmoil can prompt an emotional response that causes investors to flee stock holdings. But this can cause long-term harm to your portfolio. Instead, you need to put things in perspective and stick to the fundamental rules of investing.

The Core Approach to Building an Effective ETF Portfolio
October 2008 by Maria Crawford Scott
As investment products increase in number and complexity, many individuals are searching for an approach that keeps it simple and low-cost. Exchange-traded funds (ETFs) offer a useful starting point, and using the core index portfolio approach, you can build effective portfolios ranging from the basic to the complex--all at a low cost.

A Do-It-Yourself Approach to Target Date Retirement Investing
September 2008 by Ben Branch
Using index funds, it doesn't take a lot of work to adopt the do-it-yourself approach to target date investing if you want to save on fees and possible expenses.

Optimizing Your Retirement Income: What Works Best and Why
August 2008 by Christine S. Fahlund
Only a small minority of Baby Boomers are accumulating enough savings to provide for their income needs. But those approaching retirement can improve their financial security in retirement, depending on their flexibility and their approach to four big decisions that are under their control.

Will Your Savings Last? What the Withdrawal Rate Studies Show
July 2008 by William Reichenstein
Determining a "safe" withdrawal rate for retirement savings is a tricky balancing act for retirees. If it is too large, they may run through assets too quickly, but if it is too little, their lifestyle will be below where it could be. Many studies have attempted to determine the "maximum" safe rate. Lessons from what the studies have found.

Human Capital and the Theory of Life-Cycle Investing
May 2008 by Paula Hogan
Life-cycle theory, first developed in the 1970s, points out that each person has both human and financial capital, with the former being most important. While it seems like a small change to focus more on human capital, it has major planning implications.

Clueless: What Graduates Need to Know About Making Financial Decisions
January 2008 by William Reichenstein, Tom Potts
Bad decision-making in an individual's early years can have a detrimental effect on their well-being throughout their working lives. A primer aimed at the younger generation on how to avoid early-year financial mistakes.

Investment Products: If It Has to Be Sold, Don't Buy It!
November 2007 by William Reichenstein, Larry Swedroe
Financial firms can add, at best, only a small value by buying and combining securities into a portfolio. Many investors haven't thought about this, but it explains why investments and products with commissions should be avoided.

Building an ETF Portfolio: From the Simple to the Complex
October 2007 by Maria Crawford Scott
You can keep it simple while making it complex. By using a simple, index-based approach, you can build a low-cost, low-maintenance fully diversified portfolio of exchange-traded funds that can range from the basic to the intricate. A look at the low-hassle ETF portfolio.

Explaining the Value Tilt and Its Implications for Investors
July 2007 by William Reichenstein
Over the long run, returns on value stocks have exceeded returns on growth stocks. The raging debate in the financial community is: Why? And can investors actually profit from this value tilt? A look at the competing explanations and their implications for investors.

Invest or Delay? Strategies for Taking Social Security Benefits
February 2007 by Christine S. Fahlund
Individuals who are eligible for Social Security face a complicated question: Are you better off delaying the start of your benefits so you can receive higher benefits, or are you better off receiving earlier but lower benefits? An analysis of various strategies for taking benefits.

Choosing the Right Mix: Lessons From Life Cycle Funds
January 2007 by William Reichenstein, William W. Jennings
Life cycle funds represent a fund family’s professional thinking about prudent asset allocations through a typical individual’s life cycle. What you can learn from four life cycle fund families.

The Actively Passive Trend: Indexes Get a Makeover
October 2006 by Maria Crawford Scott
This year's crop of ETFs highlights a growing trend in index fund investing--an attempt to redefine the index concept. A look at the makeover trend.

Should You Consider a Roth IRA Conversion in 2010?
August 2006 by Christine S. Fahlund
The new tax act passed earlier this year opens the Roth IRA conversion door to more investors starting in 2010. Even investors with relatively high annual incomes who are approaching retirement or recently retired may find it worthwhile to convert at least a part of their IRAs to a Roth IRA. A look at when it is most advantageous.

New From Your Employer: The Roth 401(k) Plan
January 2006 by Peter James Lingane
Starting this month, your employer may start accepting aftertax elective deferrals to your 401(k) or 403(b) plans. How do you choose between making a pretax contribution to a traditional plan or an aftertax contribution to a Roth-style plan? A look at how to approach this decision.

The Real-World Lessons From Investment Theory
January 2006 by William Reichenstein
Modern Portfolio Theory is the accepted approach to portfolio management today. But many investors are unfamiliar with the underlying principles. What you need to learn from investment theory, and how to apply it to your real-world investment portfolio.

Tax-Efficient Investing: Picking the Right Pocket for Your Assets
November 2005 by William Reichenstein
If you want to keep Uncle Sam’s fingers off your assets, you need to put them into the right tax pocket. A look at the third principle of tax-efficient portfolio management: How to decide which assets should go into your tax-deferred and taxable accounts.

The EZ Approach to ETF Portfolio Building
October 2005 by Maria Crawford Scott
Despite the dizzying array of complicated investment products to choose among, there is a simple way to build a low-cost, low-maintenance, fully diversified portfolio. And all you need are a few key exchange-traded funds. A look at the low-hassle ETF portfolio.

Withdrawal Rules: Squeezing More From Your Retirement Portfolio
August 2005 by Jonathan Guyton
How much can you withdraw annually from your retirement portfolio? By incorporating systematic decision rules, you may be better able to maintain your desired living standard.

The Great Tax Fight: Managing Stocks in Taxable Accounts
July 2005 by William Reichenstein
The Fight of the Century is the continuous fight investors have with Uncle Sam over their return dollars. Who's the leading challenger? The Tax-Efficient Investor. A look at how to create a tax-efficient portfolio when managing individual stocks.

For Long-Term Investors, the Focus Should Be on Risk
June 2005 by Zvi Bodie, Paula Hogan
When determining the optimal allocation for your own portfolio, it's best to focus first on how much you are able and willing to lose.

Tax-Efficient Investing and What It Means to Your Portfolio
February 2005 by William Reichenstein
Portfolio Strategies: Although tax laws constantly change, the key to tax-efficient investing is contained in a small number of provisions that are unlikely to be altered. A new way of thinking about asset allocation that considers aftertax values.

Retirement Withdrawals: What Rate Is Safe When Time Is Short and Uncertain?
January 2005 by Carl M. Hubbard
Portfolio Strategies: Most studies that examine sustainable retirement withdrawal rates cover payout periods of 15 to 35 years. But what happens when circumstances shorten the period? A look at how much you can safely withdraw over shorter payout periods.

Insured Investment Products: The Reality Behind the Hype
November 2004 by William Reichenstein
Portfolio Strategies: Insured products promise the upside of a speculative asset, while attempting to limit the downside risk. But can these products deliver--and are they useful additions to an investor's portfolio?

What Are You Really Getting When You Invest in a Hedge Fund?
July 2004 by William Reichenstein
Portfolio Strategies: Hedge funds are touted for providing strong historical returns and being weakly correlated with the stock market. If it seems too good to be true, it probably is. What you should know about adding hedge funds to your portfolio.

Maintaining the Flow: Will Foreign Stocks Help Your Retirement Portfolio?
May 2004 by Carl M. Hubbard
Recent studies call into question the risk-reduction benefits of international diversification. Retirees want to know if foreign stocks can improve their portfolio performance enough to allow them to withdraw more each year.

Retiree Stock Allocation Recommendations: Do You Fit the "Mold"?
February 2004 by William Reichenstein
How much of your portfolio should be invested in stocks if you are living off of your retirement savings? A look at where the professional advisors agree and disagree concerning the "typical" investor.

Makeover for a Bear-Mauled Portfolio: How to Create a Winning Game Plan
January 2004 by Vern C. Hayden
By the time the Edwards' decided they needed a makeover, the bear market had eaten up 53% of their original investment. A portfolio makeover defused their ticking time-bomb and provides important lessons for other investors.

Allocation During Retirement: Adding Annuities to the Mix
November 2003 by William Reichenstein
At its most basic level, the decision to annuitize involves the trade-off between longevity risk and the bequest motive: The major advantage of annuitization is the reduction in longevity risk.

The New Tax Act: Should You Revamp Your Portfolio?
August 2003 by Maria Crawford Scott
Changes in the tax law have raised a number of issues for investors, in particular the relative benefits provided by tax-deferred accounts compared to taxable investments under the new rates.

Retirement Planning: Annuities and When They May Make Sense
July 2003 by William Reichenstein
Low-cost annuities can make sense when compared to taxable investments for bond investors and active stock investors with long investment horizons. They do not make sense for long-term buy-and-hold investors.

Bear Market Strategies: Watch the Spending, Hold the Stocks
May 2003 by AAII Staff
The asset allocation decision in retirement can be critical depending on your withdrawal rate and time horizon. Recent analysis shows that retirees should keep at least 30% to 40% in equities.

Ten Lessons You Should Learn From Recent Market History
February 2003 by William Reichenstein
A review of returns from 1987 through 2002, encompassing both strong bull and fierce bear markets, shows that a fixed-weight portfolio that includes both bonds and stocks and is rebalanced annually is One Good Strategy.

When Should You Start Your Social Security Benefits?
November 2002 by William Reichenstein
Is it worth the delay in receiving Social Security benefits to get a higher monthly payment? Strategies for maximizing the present value of expected benefits.

The Shrinking Equity Premium and What It Means to Investors
October 2002 by Paula Hogan
There is an emerging consensus among academics that the equity premium looking forward is significantly less than the traditional estimate. Current estimates imply a 5% to 7% annual future return for an all-stock portfolio.

Valuing Your Pension Benefits and the Asset Allocation Implications
July 2002 by William W. Jennings
Asset allocation should be based on the family's extended portfolio that includes the present values of income from Social Security and pension plans. Including these values may have dramatic investment implications.

Liquidating Retirement Assets in a Tax-Efficient Manner
May 2002 by William A. Raabe
When you enter retirement, you retire from work, not from decision-making. For example, which assets should you withdraw first--taxable or tax-deferred? Decision rules for a typical retiree to keep tax liabilities to a minimum.

Planning for Retirement: What to Expect From Social Security
February 2002 by William Reichenstein
To properly manage Social Security benefits, you need to understand their key features. And as you approach retirement, you need to have an idea of how your decisions could affect the size of future benefits.

Covering All Your Bases: Diversifying in the U.S. Markets
October 1998 by Maria Crawford Scott
Portfolio Strategies Workshop: Firms of different market capitalizations behave differently and their complementary behavior can significantly reduce risk for investors who diversify.

How Much Diversification Does Your Portfolio Need?
August 1998 by Maria Crawford Scott
Portfolio Strategies Workshop: Precious metals, real estate and commodities are sometimes suggested as useful additions to your portfolio. Do they bring more diversification? And how practical is investment in them?

Keeping Track of Your Portfolio: What to Monitor and When
February 1998 by Maria Crawford Scott

Setting up a reasonable and workable investment plan is one of the most important decisions an investor can make. But once that decision is made, an investor’s work is only half done.

Retirement Savings: Choosing a Withdrawal Rate That Is Sustainable
February 1998 by Carl M. Hubbard
What's a reasonable withdrawal rate when living off savings? A look at how various withdrawal rates would have fared based on past market returns provides a useful guide.

Strategies for Married Couples: How to Coordinate Your Plans
July 1996 by AAII Staff
Most people think of their 401(k) plans allocations in isolation. But for married couples, it may be better to "marry" your allocation strategies as well. A look at the coordinated approach to retirement investing.

Assessing Your Portfolio Allocation From a Retiree's Point of View
May 1996 by Maria Crawford Scott
Portfolio Strategies Workshop: Retirees need to check their portfolios periodically to ensure that savings will last. Assessing your portfolio: A case study.

Receiving a Retirement Plan Distribution: Considerations for Younger Investors
April 1996 by Maria Crawford Scott
Portfolio Strategies Workshop: What should a twentysomething investor do with a retirement distribution when changing jobs? A look at the alternatives.

Incorporating an Inheritance Into Your Existing Portfolio
February 1996 by Maria Crawford Scott
How to integrate an inheritance into your investment portfolio.

Index Funds and the Balance Between Active and Passive Investing
January 1996 by Maria Crawford Scott
Portfolio Strategies Workshop: Why should you consider investing index funds? A look at some of the reasons.

Diversification: How Many Stocks Will Suffice?
January 1990 by John K. Ford
Most individual investors know by intuition that diversification is beneficial. But how much diversification is necessary? A different approach to the question provides some interesting results.

Portfolio Strategies Articles