Avoiding the Mistakes Made by Ineffective Investors By Spencer Jakab
Published in July 2016, AAII Journal.
- A lesson each generation of investors seems to learn the hard way is that boring companies make for better investments
- Reaching for yield means ignoring a key lesson of investing: There’s no reward without risk
- Understand whether or not leverage is used, since investments that use it can experience large losses.
"For Bucket Portfolios, the Devil Is in the Details" written by Christine Benz, Morningstar's director of personal finance.
Published in July 2018, AAII Journal.
- Bucket strategies structure a portfolio based on the timing of expected withdrawals;
they strike a balance between short-term risk and long-term growth.
- Creating a retirement policy statement helps to manage a bucket strategy
by setting up guidelines for how withdrawals will be funded and how the allocation will be adjusted.
- Investors with multiple accounts can use taxable accounts for shorter-term withdrawals,
while putting traditional and Roth IRAs into intermediate- and long-term buckets, respectively