McLean Asset Management
As a bond provides a contractual right to a series of future payments received at specified points of time, the price for a bond is simply the present discounted value of the future cash flows. The face value of a bond will be repaid at maturity. A zero-coupon bond provides only a bond’s face value,…
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A lot of financial marketing pushes the idea that there’s a single “retirement number” you need to hit, making it sound like the key to a secure retirement is finding and reaching this magic number. While this idea is appealing, the truth is that retirement planning isn’t a one-size-fits-all approach. There’s no right number that ensures you…
Read MoreThis article let’s me get on my soapbox about one of my favorite topics: markets don’t need to be right to be efficient. Oftentimes, people equate market efficiency with “right” or “perfect” market prices. That’s simply not true, and in fact, it doesn’t even mean anything. The folks who are advancing these arguments are either misinformed or…
Read MoreJack Bogle has done more for investors than almost anyone. He popularized passive investing, and founded Vanguard. Everything he has done hasn’t happened by accident. When he talks about the financial services industry people should listen, and think carefully about what he says. He isn’t always right about everything, but he knows what he’s talking…
Read MoreThis report features world capital market performance and a timeline of events for the last quarter. It begins with a global overview, then features the returns of stock and bond asset classes in the US and international markets. The report also illustrates the performance of globally diversified portfolios and features a topic of the quarter.…
Read MoreIn addition to other methods we’ve discussed, a third type of variable spending model uses dynamic programming methods. These methods rely on complex computing power and mathematical equations to integrate spending and asset allocation decisions more completely over the life cycle. Dynamic programming provides a road map at each point in time for optimal spending and…
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Of all the different goal types, longevity goals are probably the least intuitive. They are based on the possibility that you will live longer than you expect. That sounds great, but your income plan needs to be able to fund those years of retirement (unless you plan on hustling Pinochle when you’re 90). We find…
Read MoreThe fiduciary rule has been in the news again lately, as some members of Congress have been trying to “delay” it so they can “study” its impact. In other words, kill it. But there’s some interesting data that suggests that, at least in the long term, this is moot. Cerulli Associates has found that young…
Read MorePlanning for retirement is hard. There’s a lot to think about, and so much of what you need to prepare for is uncertain. But as this article points out, everything starts with trying to figure out how much you’ll spend in retirement. Once you know that, you can figure out how you’ll get there (or…
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