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Using Cash and Short-Term Bonds to Avoid Taking Losses in Retirement

by AAII Staff | June 25, 2019

Analyzing a Stock by Its Dividend and Shareholder Yield

One theory of valuation is that a stock is worth the cash distributable to shareholders. An advantage to methodologies based on this concept is that cash distributions are not influenced by accounting adjustments. Cash is either returned to shareholders or it’s not. Both dividends and stock buybacks can be used to assess a stock’s attractiveness; higher relative shareholder yields have historically led to better stock returns. More »

Bond Yields’ Role as a Recession Warning Signal

Campbell Harvey’s 1986 University of Chicago dissertation was the first paper to identify inverted bond yield curves as preceding recessions. He spoke with AAII’s Charles Rotblut just after the yield curve inverted in April 2019 about his model and how investors should interpret it. More »
		Campbell Harvey


Using Cash and Short-Term Bonds to Avoid Taking Losses in Retirement

Jane Bryant Quinn is a nationally known personal finance writer and commentator. Her latest book is “How to Make Your Money Last: The Indispensable Retirement Guide” (Simon & Schuster, 2016). In this conversation with AAII Journal editor Charles Rotblut, the two discuss why retirees should have the equivalent of up to five years of expenses allocated to cash and short-term bond funds. More »


The Covered Call: An Income-Generating Options Strategy

The covered call provides extra income to a buy-and-hold strategy. In exchange for this income, there is a risk of lost opportunity. If the stock’s price rises well above the fixed strike price of the call, you have your 100 shares of stock called away below current market value. For some investors, this is an unacceptable risk; for others, it is gladly accepted given the potential extra returns from writing covered calls. More »

Member Question
Which of the following is your primary source of retirement income (or is expected to be)?

A) A 401(k)/403(b), IRA, Keogh or other retirement savings account
B) Social Security
C) Other savings such as a regular savings account or CDs
D) A work-sponsored pension plan
E) Individual stock, stock mutual fund or stock ETF investments
F) Part-time work
G) Rent and royalties
H) Money from an inheritance
I) Annuities or insurance plans

Previous Week’s Results
The target interest rate of the Federal Reserve is currently at 2.25% to 2.50%. Where do you think the target rate will be at the end of the year?

2.00% to 2.25% : 49%

2.25% to 2.50% : 25%

1.75% to 2.00% : 22%

1.50% to 1.75% : 3%

1.25% to 1.50% : 1%

1.00% to 1.25% : 1%

Poll results are as of 9 a.m. (Central) on Monday. 1,311 respondents.

AAII Investor Classroom: Investing in Bonds

		Think of the bond market as a mystery wrapped in an enigma? You are not alone. But this AAII classroom—a member exclusive—pulls back the curtain so that you can analyze individual bonds with confidence. More »

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