Debt is Like a “Negative Bond” A mortgage is like a negative bond, and leverage increases risk. Jonathan Clements describes debt as a “negative bond.” He suggests if you have $100,000 in bonds and $100,000 in debt, your net bond […]
How can you maximize your social security bend points? Do you want to retire early but still get as much social security as possible? If so, you should understand the bend points of social security. Most financial planners don’t […]
Bond Tents for Retirement Asset Allocation Bond tents and Rising Equity Glidepaths are styles of glidepaths. Glidepaths describe the modulation of asset allocation before and after retirement. For example, traditional target-date funds decrease the stock percentage to or through retirement […]
Safe Withdrawal Rate Early Retirement Early retirement requires a lower Safe Withdrawal Rate. Not only is the future uncertain, but there is also a longer future when you retire early! Also, it is more difficult to study the Safe Withdrawal […]
Rising Equity Glide Paths and Early Retirement Rising Equity Glide Paths are an important consideration for those facing early retirement. You have a long horizon, so you want to be aggressive. This, however, sets you up for sequence of returns […]
Managed Futures or Trend Following Managed futures suffer from a branding problem. Just like high yield is better than junk, and private credit is better than hard money, a rebranding will revive managed futures in the next decade. However, […]
Bullet Bond ETFs Your asset allocation has risk on one side and safer assets on the other. For instance, a 60/40 portfolio has 60% Stocks and 40% Fixed Income. Different ways of structuring your safer part of the portfolio […]
Breadth, Momentum, and Asset Allocation Around Retirement Lazy, low-cost, broadly diversified ETF investors are momentum investors in disguise. Cap-weighted ETFs (such as VTI or VOO) use a momentum factor. Since they are cap-weighted, the better a stock does, the […]
Physician Early Retirement Plans Physician early retirement is not a novel idea, but perhaps one that now has a more developed framework. It is an idea whose time has come: take back the keys to your j.o.b. and work […]