Retire With Possibilities

06/05/2024

Does anybody struggle to spend money in retirement after a lifetime of saving?
You're not alone, but if you want to overcome the addiction to "more" and "never enough" read my latest Retirement Juice note

The essential mindset shifts needed to transition from saving to spending in retirement. Overcoming financial fears and learning how to use money,

05/13/2024

Chinese equities, with their current valuation and growth prospects, offer a compelling case for inclusion in a well-rounded investment portfolio, promising not just diversification but also the potential for attractive returns.

- The Retirement Architect

Read more here:

Dive into the world of contrarian investing discussing the benefits of adding Chinese equities to your investment portfolio either directly or via EM funds

02/23/2024

The Biggest Hurdles Facing Investors are often hidden

All investors – big and small – need to overcome these challenges

Hurdle #1: Taxes
The more active your trading the more you're sharing with the IRS. Timing your taxes is a pretty robust source of alpha - a win-win for you.

Hurdle #2: Fees & Expenses
Investment management fees can add up especially if you're paying your advisor on the old AUM schedule. Those Celtics tickets aren't free. Just ask Rachel Rollins.

Hurdle #3: Inflation
The loss of purchasing power is like carbon monoxide - you don't notice it, but it kills you. Probably the biggest threat to retirees. Maintaining or even better elevating your purchasing power is ultimately your real bogey!

Hurdle #4: Cash Drag
Not too bad right now, but historically it's barely kept up with inflation. You work hard, why don't you expect the same from your cash? Don't pay too much for feeling safe.

Hurdle #5: Volatility Drag
It's the drag queen that smashes your dreams of riches. It means that after a big loss you need an even bigger gain to get to breakeven. Think about both returns and vol. Volatility drag acts as a tax on your wealth.

Hurdle #6: Yourself
Being human is tough on your portfolio. We love safety and certainty, don't we? And guess what? The markets don't move on safety and certainty. They do exactly the opposite of what you crave. Learn to control your emotions.

These are the topics that fascinate me and which I write about in my newsletter. Read here:

Extract more from your portfolio

02/21/2024

Asset allocation is not a set-and-forget strategy.

Six common mistakes made by individual investors:

1. Failing to Pay Attention to Investor Risk Capacity: Assess and integrate your financial ability to withstand losses into your investment decisions.

2. Never Adjusting the Asset Mix: Stay responsive to changing asset volatilities and correlations to maintain a balanced and effective portfolio.

3. Misunderstanding Diversification: Fund names do not diversify. Not everything goes up at the same time but protects you on the downside. A hedge usually carries a cost.

4. Overemphasis on Equities: Ensure a well-rounded portfolio by considering the roles of various asset classes, not just stocks.

5. Overlooking Current Starting Valuations: Use valuations as a guide for potential risk and return, adjusting your asset allocation to align with these metrics.

6. Lacking a Contingency Plan: Prepare for both downturns and upswings with a clear strategy to adjust your portfolio as needed.

Want to learn more?

Subscribe to my newsletter, Retirement Juice coming out today
https://retirementjuice.beehiiv.com/subscribe

02/20/2024

The older I get the less time I want to spend time on things and people that I don't enjoy.

By the same token, the older I get the more time I want to spend with family and friends doing things I enjoy and find fulfilling.

We're all depreciating assets so time becomes a heck more valuable as we get older.

Retirement is the wrong word to describe your life post-primary career. You're not retiring from life, but rather embracing it on your terms.

We should instead just focus on how we spend our time and build a life post-career that we can be proud of. You fill in the blanks with your version of joy and fulfillment!

02/12/2024

The risks that nobody thinks about as they fantasize about their retirement years:

Fraying social networks as you leave community and work friends behind

Grey Divorce as your spouse or you realize that there is not much need for the partnership anymore

Lack of meaning and purpose as the honeymoon wears off - the dreaded "now what" or "is this all there is" existential questions

Living a long, long time but in bad health - longevity without lifespan equals disappointment and regret

Deteriorating mental acuity - the dreaded "A" word is not often spoken, but should be

An unexpected health crisis affecting you and/or your loved ones derailing your lifestyle vision

All of these lifestyle risks increase in importance the longer you've been retired.

Pay as much attention to these lifestyle risks as you do to your investment portfolio and plan holistically.

You will care a lot more about these lifestyle risks in the long-run than you do about the yield on the 10-year note or the S&P 500.

02/06/2024

The many faces of investor risk tolerance:

* Money beliefs

* Emotional resilience

* Ability to deal with shocks

* Time Horizon

* Knowledge of market history

* Resources relative to cash flow needs

Understanding your risk tolerance is key to setting your strategic asset allocation mix.

It's not just about hardcore risk & and return tradeoffs but also how you feel emotionally and your way of balancing your desire for more versus your fear of losing what you have.

I'm writing more on this topic tomorrow. Sign up here to get the update

Extract more from your portfolio

02/01/2024

Retirement is kind of like becoming an entrepreneur.

* Nobody tells you what your priorities are
* Nobody tells you how to structure your time
* Nobody believes that sometimes you miss your old life
* Nobody wants to hear that often you don't have a clue what's next

You’re the big BOSS now.

Nobody else to blame but yourself.

Time to clarify your Future Self and move forward.

01/23/2024

I just launched a newsletter focused on helping people near or already in retirement better invest their capital.

If you are looking for some ideas or just want another perspective from a seasoned pro please take a look and subscribe for free.

Extract more from your portfolio

01/17/2024

Think you’re ready to switch from coffee runs to beach fun?🏖️
Give our retirement readiness quiz a try and see if it's time to hang up the office keys! 🗝️

https://retirewithpossibilities.com/resources-and-quizzes/your-retirement-readiness-assessment/

11/01/2023

Our key concept of the 9 Keys to True Wealth. It's more than just about money.

Read more here: https://www.retirewithpossibilities.com/the-9-keys-to-true-wealth/