Is Asset Allocation Just a Form of Market Timing?

“Only liars manage to always be out during bad times and in during good times.” –Bernard Baruch I recently had a reader ask me a question via e-mail: I’m writing regarding the research by Dr. Wade Pfau that suggests that retirees are significantly better off holding only 20% in equities during the first five years […]

What is the Asset You Least Want to Lose?

“By the time I have money to burn, my fire will have burnt out.” –Unknown I was speaking with a friend recently, and this friend bet that I would become bored in retirement. “You’ll go start some other company because you have the entrepreneurial fire burning within you,” my friend said (I paraphrase). “Nope. I’ll […]

Once You’ve Won, Stop Playing the Game!

“All Steve [Schwartzman, Blackstone’s CEO] kept saying throughout breakfast,” my friend told me, “is ‘how the F* is Larry Page worth $15 billion and I’m only worth $3 billion’.” –via James Altucher (source) When people think about how money relates to their personal life goals, they usually go through four stages, which are different from […]

Maximize Your Lifetime Utility

“I think Smithers picked me because of my motivational skills. Everyone says they have to work a lot harder when I’m around.” –Homer Simpson When we hit PIRE, we plan on doing a lot of world travel rather than seeing places in the United States that we haven’t seen. It’s not that we don’t think […]

Is Spending More Time at Work Worth the Salary Increase?

“I mean what good does it do anyone to kill themselves working, because the worms will get you in the end.” –Dorothy Gish When I was in the Army, the platoon sergeants in a unit I was in got caught up in a game of one upmanship. They wanted to be in early so they’d […]

How Much Do You Have to Save to Retire Early?

“The best time to start thinking about retirement is before your boss does.” –Anonymous When I was in the Army, I had the option of staying in – assuming they didn’t kick me out at some point – for 20 years and then retiring. Had I stayed in, I’d have less than 2 years left […]