It’s that time of year again, when the financial media issues its “Where to Invest Now” guides. As is often the case, following these experts’ advice in 2016 would have caused more pain than gain.
Despite rekindled fears over rising interest rates, higher yields are a positive development for long-term investors.
Balancing the desire to live for today against minimizing the risk of outliving one’s money is the primary challenge of successful retirement planning.
If we declared September 30th the end of 2016, the return of a typical Vista portfolio (65% stocks, 35% bonds) would be close to its long-term average of 8.8%. An average year may not sound like news until you realize how rarely it has occurred historically.
It’s often thought the vacation home, unlimited free time or travel in retirement will satisfy our heart’s desire. The momentary satisfaction we feel, however, often doesn’t translate into lasting happiness. We get used to the good life, and that happiness is too often short lived.
Anyone who’s purchased a car knows the party most prepared to walk away from the deal has the advantage. It is the motivated buyer, or seller, who is most often forced to make the biggest concession. It’s no different in investing.