THE AAII JOURNAL APRIL 2018 ISSUE

COVER ARTICLE

Are You Spending Too Little in Retirement?

While mental tools and self-control are useful when saving, in retirement, they can stop us from spending on ourselves and family.

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Features

in Computerized Investing

Using the blooom Robo-Adviser to Manage Your 401(k)

By Jaclyn N. McClellan

The blooom service links to users’ existing 401(k)s and carries out recommended changes to the portfolio based on optimal fees, risk and diversification.

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in Investor Professor,Currency,Alternative Investments,Digital Assets

Bitcoin, Blockchain and Initial Coin Offerings

By Charles Rotblut

A primer on what cryptocurrencies, blockchain technology and ICOs are.

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in Investing Gurus,First Cut Stocks

Charles’ “Buy of the Week” EPS Revision Screen

By Charles Rotblut

Twenty S&P 1500 member stocks with P/Es below their five-year average high and rising earnings estimates.

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in Small Cap Value Investing,AAII Model Portfolios

Model Shadow Stock Portfolio: Insights and a New Stock

By Wayne A. Thorp, John Bajkowski

To realize the higher long-term returns of small-cap value stocks, some periods of short-term underperformance have to be endured.

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in Portfolio Strategies,Retired Investor,Rebalancing

Rebalancing Update: 4.5% Withdrawal Rate and Rolling Periods

By Charles Rotblut

Increasing the withdrawal rate led to bigger distributions, but lower ending wealth. Altering the investing period also has an impact.

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in Value Investing,AAII Stock Ideas

Revisiting the Lakonishok Approach to Patient Value Investing

By AAII Staff

Price momentum requirements are included in this strategy to identify value stocks with resurgent share prices.

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in Financial Planning,Retired Investor,Social Security

Social Security and Medicare Can Raise Retirees' Tax Rates

By William Reichenstein, William Meyer

Higher levels of income not only affect the taxation of Social Security benefits, but can also lead to higher Medicare premiums.

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in Stock Strategies

The Traits Successful Business Visionaries Share

By Lloyd Shefsky

There are five primary types of vision business leaders have. What they are and how to monitor CEOs’ progress toward their visions.

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Notes & Opinions

in Editor's Note

Editor's Note

By Charles Rotblut

Last year may go down as the year that cryptocurrencies went from being a niche asset favored by a relatively small group of believers to a full, outright bubble.

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in Dispatches,Corporate Management

Overconfident CEOs Buy Back More Stock

Companies with chief executive officers who exhibit signs of overconfidence are more likely to repurchase their own shares and tend to allocate more dollars to doing so.

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in Dispatches,Fraud

Survey: 8% of Older Adults Are Victims of Financial Fraud

A series of questions in the 2016 Health and Retirement Study (HRS) asked respondents over the age of 50 about financial victimization. (The median age was 68.) Eight percent reported to have fallen prey to at least one form of financial fraud within the past 12 months.

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in Dispatches

Future Retirees at Greater Risk of Hardship

Due to changes in the retirement system, future retirees may have more difficulty than current retirees withstanding a financial shock, according to separate studies.

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in Dispatches

Workplace Retirement Plans Affect Savings Behavior

A Pew Charitable Trusts survey looked at the difference in behavior between workers who participated in employer-sponsored retirement plans [e.g., 401(k) plans] and those who did not participate in such plans.

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in Letters to the Editor

Letters

By AAII Staff

Members comment on 2018 tax updates and strategies, and funding retirement.

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Expand to Read More

The AAII Journal, a leading investment publication, provides readers with a continuing stream of insights and ideas that focus on how you can improve your investment results. Unlike many investment magazines, ours is completely unbiased, educational and contains no advertising.

AAII has published this prestigious financial journal every month for more than 40 years. Members receive it for free and have access to thousands of evergreen articles online so they can reference information and strategies for previous market situations with a few clicks of the mouse.

Our stock journal helps individual investors manage their portfolios, build sound investment strategies and navigate all types of financial conditions. Articles range from optimizing target-date fund portfolios to retirement account withdrawal strategies and analysis on robo-advisor performance.

The magazine also has recurring features our members find invaluable. Every quarter, we dissect our model stock portfolio and provide updates to its holdings and performance. This analysis helps individual investors manage small-cap value investments.

We also offer an annual tax guide in our financial magazine. This detailed investment magazine issue covers many details that individual investors need to consider when filing their taxes. It keeps readers updated on any recent changes to tax laws and provisions and provides a handy guide to tax implications of personal investments to cut through any tax filing confusion.

Another annual feature covers ETFs (exchange-traded funds) and mutual funds. This edition helps individual investors understand what to look for when investing in funds. Online, we accompany those articles with sortable tables so that members have an interactive component to their investment research. This helps individual investors plan their portfolios and invest with confidence.

Other regular features in the AAII Journal include financial planning, stock ideas and investor professor. Financial planning articles walk investors through the process and difficulties of crafting strategies for creating wealth regardless of age. They also cover difficult situations, such as estate planning, and helpful advice for getting kids and grandchildren interested in investing.

Stock ideas, as the name implies, give readers a peek at new screens and the stocks that pass them. This part of our investing magazine helps readers identify new opportunities in the markets, flagged by a mix of quantitative and qualitative analysis. Because we all, as investors, need ideas, this remains one of the most popular categories.

Investor professor helps readers invest with knowledge and confidence. It deals with contingencies, such as “What happens to your investment if a company goes bankrupt?” and gives actionable advice on what resources you should use when considering a new broker. Our readers enjoy this section because of its practicality and enduring tips.

Frequent internal contributors include president John Bajkowski; AAII Journal editor and vice president Charles Rotblut; Stock Superstars Report lead analyst Wayne A. Thorp; and Dividend Investing editor Derek Hageman. Together, these internal contributors have nearly a century of market wisdom and research, which they share with clear and concise prose to help individual investors improve their knowledge and portfolios.

The AAII Journal also includes frequent guest contributions from the financial and economic space. Articles from outside industry experts differentiate our financial magazine from others and provide additional points of view for our readers. Previous guest authors have included John C. Bogle, founder of Vanguard; Jay Clayton, chairman of the U.S. Securities and Exchange Commission; Charles Schwab; and Nobel laureate and Yale professor Robert Shiller.

We hope you’ll enjoy our articles and, if you’re not a member, consider joining the Association so you can get our prestigious magazine sent to your door every month.