I get lots of questions from readers about whether or not they should take advantage of their Roth 401(k) (or 403(b)) option. They’re usually looking for an easy, straightforward answer. Unfortunately, it isn’t that easy. I only have one rule of thumb, and that’s that residents (and military docs) should make Roth contributions and attendings should generally make traditional, tax-advantaged ...

T. Boones Pickens was a wealthy man.  If you don’t know who he was, let’s just say he was one of the most successful business magnates during your lifetime.  Starting as a “depression-era baby from tiny Holdenville, Oklahoma”, he became a billionaire by entering the petroleum industry after college and founding what would become Mesa Petroleum, which evolved into a ...

The most popular post I’ve ever written was titled How To Build A Retirement Paycheck, which outlines the details of how we were setting up The Bucket Strategy for retirement.  It seems a lot of you have an interest in the topic, for good reason.  Moving from the Accumulation Phase to the Withdrawal Phase is one of the biggest challenges ...

Some people just aren’t cut out for early retirement. IMO, most people would choose to keep working even after they achieve financial independence. Early retirement is unconventional and scary. Why retire if things are going well? Let’s take a look at my friend for example. Jane worked hard for many years. She saved and invested since she was young and ...

The theme for 2018’s International Women’s Day campaign is #BalanceforBetter, “Think equal, build smart, innovate for change”.  It is a time to applaud the progress of women’s achievements around the world. However, even with incredible progress, women face unique circumstances when approaching retirement. Women Live Longer Than Men Because women tend to live longer than men, they likely will have ...

Inflation is one of the most pernicious risks facing retirees. While there are a lot of ways to manage inflation risk, TIPS, or Treasury Inflation Protected Securities, are one of the few investment options that directly hedge against inflation risk. They aren’t perfect, and there are certainly some things to consider when you use them in a portfolio, but they ...

Monday (August 5th, 2019) was a chaotic day for both the world economy and markets. We want to break down what’s happened, and how that will likely impact your investments. First off, both the Dow Jones Industrial Average and the S&P 500 Index were down a little bit less than 3% on Monday. This drop was largely driven by the ...

Well, it’s time for another retirement update where I share what it’s like in the retired world of ESI. If you didn’t catch the last one, here it is. You may want to read it as some of the items mentioned in this post will assume you know what’s in the former piece. The past three months have continued to ...

Brr… Winter is almost here. The overnight temperature plunged into the 30s a few times recently. This seems a bit early to me. Usually, it doesn’t get this cold in Portland until December. The weather is strange this year. It’s been a lot drier than usual. The crisp sunny days are beautiful, but this also means it’s colder. I’m not ...

Most Target Date Funds are funds of the mutual funds of the fund family offering the TDF.  The pitch is to invest in the fund with a target date closest to your projected retirement date and “… we’ll do the rest….”  A key element of Target Date Funds is their Glide Path into retirement.  Stated another way the Glide Path ...

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