Comments on: Worry-Free Investing: Calculate Your Risk-Free Savings Rate For Retirement http://www.mymoneyblog.com/worry-free-investing-calculate-your-risk-free-savings-rate-for-retirement.html Personal Finance and Investing Blog Sun, 12 Feb 2012 05:06:12 +0000 hourly 1 By: john black http://www.mymoneyblog.com/worry-free-investing-calculate-your-risk-free-savings-rate-for-retirement.html#comment-122224 john black Tue, 13 Jan 2009 14:01:23 +0000 http://www.mymoneyblog.com/archives/2008/12/worry-free-investing-calculate-your-risk-free-savings-rate-for-retirement.html#comment-122224 Generally I do not post on blogs, but I would like to say that this post really forced me to do so! really nice post. Generally I do not post on blogs, but I would like to say that this post really forced me to do so! really nice post.

]]> By: Laurence @ CakeFinancial.com http://www.mymoneyblog.com/worry-free-investing-calculate-your-risk-free-savings-rate-for-retirement.html#comment-121336 Laurence @ CakeFinancial.com Tue, 23 Dec 2008 23:47:15 +0000 http://www.mymoneyblog.com/archives/2008/12/worry-free-investing-calculate-your-risk-free-savings-rate-for-retirement.html#comment-121336 This is a great post. It is so important for investors to understand their level of risk in order to manage their portfolio and meet their goals. The actual calculation of risk is often very challenging for mainstream investors. Cake Financial offers a risk calculation for the equity portion of a portfolio (stocks, mutual funds and ETFs). It calculates risk by looking at the actual returns of the securities and producing the standard deviation. Investors can also see how mush risk they are incurring in the context of the market (other investors) as well. This is a great post. It is so important for investors to understand their level of risk in order to manage their portfolio and meet their goals. The actual calculation of risk is often very challenging for mainstream investors.

Cake Financial offers a risk calculation for the equity portion of a portfolio (stocks, mutual funds and ETFs). It calculates risk by looking at the actual returns of the securities and producing the standard deviation. Investors can also see how mush risk they are incurring in the context of the market (other investors) as well.

]]> By: kitty http://www.mymoneyblog.com/worry-free-investing-calculate-your-risk-free-savings-rate-for-retirement.html#comment-121226 kitty Sun, 21 Dec 2008 16:43:21 +0000 http://www.mymoneyblog.com/archives/2008/12/worry-free-investing-calculate-your-risk-free-savings-rate-for-retirement.html#comment-121226 One other thing to consider when investing in TIPs is a potential impact of deflation if we get one. While your original investment is safe, the inflation increases occurred up to this point are reduced if there is deflation, I believe. So far we haven't had a deflationary period, but we might now. One other thing to consider when investing in TIPs is a potential impact of deflation if we get one. While your original investment is safe, the inflation increases occurred up to this point are reduced if there is deflation, I believe. So far we haven’t had a deflationary period, but we might now.

]]> By: Weekly Dividend Investing Roundup - December 20, 2008 » The Dividend Guy Blog http://www.mymoneyblog.com/worry-free-investing-calculate-your-risk-free-savings-rate-for-retirement.html#comment-121166 Weekly Dividend Investing Roundup - December 20, 2008 » The Dividend Guy Blog Sat, 20 Dec 2008 11:03:55 +0000 http://www.mymoneyblog.com/archives/2008/12/worry-free-investing-calculate-your-risk-free-savings-rate-for-retirement.html#comment-121166 [...] Worry free investing [...] [...] Worry free investing [...]

]]> By: Ryan http://www.mymoneyblog.com/worry-free-investing-calculate-your-risk-free-savings-rate-for-retirement.html#comment-121053 Ryan Thu, 18 Dec 2008 01:53:33 +0000 http://www.mymoneyblog.com/archives/2008/12/worry-free-investing-calculate-your-risk-free-savings-rate-for-retirement.html#comment-121053 I do not understand what is the goal of this spreadsheet. What do these numbers represent? At retirement should I have the same income as I do with the current salary or a minimum retirement income? Also, what is the definition of all these rows? I do not understand what is the goal of this spreadsheet. What do these numbers represent? At retirement should I have the same income as I do with the current salary or a minimum retirement income?

Also, what is the definition of all these rows?

]]> By: Mike H http://www.mymoneyblog.com/worry-free-investing-calculate-your-risk-free-savings-rate-for-retirement.html#comment-121045 Mike H Wed, 17 Dec 2008 21:49:56 +0000 http://www.mymoneyblog.com/archives/2008/12/worry-free-investing-calculate-your-risk-free-savings-rate-for-retirement.html#comment-121045 The people I trust generally believe inflation is slightly OVERestimated by the CPI. This is because it's really hard to count for those quality gains and separate them from price inflation, and I think the bean-counters try to be conservative whenever they can. I don't want to start a war over this subject, I understand many people believe the government has a vested interest in understating inflation. Look at in another way: The TIPS spread (10-year TIPS minus 10-year bond) is consistently less than the CPI. Meaning the market sees less inflation than the government ends up reporting. That being said, I have heard the 10-year bond has yielded more than the 10-year TIPS over time. TIPS are interesting, but may not be as good of an investment as they often sound. Especially now that we are experiencing deflation. The people I trust generally believe inflation is slightly OVERestimated by the CPI. This is because it’s really hard to count for those quality gains and separate them from price inflation, and I think the bean-counters try to be conservative whenever they can. I don’t want to start a war over this subject, I understand many people believe the government has a vested interest in understating inflation.

Look at in another way: The TIPS spread (10-year TIPS minus 10-year bond) is consistently less than the CPI. Meaning the market sees less inflation than the government ends up reporting. That being said, I have heard the 10-year bond has yielded more than the 10-year TIPS over time. TIPS are interesting, but may not be as good of an investment as they often sound. Especially now that we are experiencing deflation.

]]> By: Jasan http://www.mymoneyblog.com/worry-free-investing-calculate-your-risk-free-savings-rate-for-retirement.html#comment-121042 Jasan Wed, 17 Dec 2008 20:10:03 +0000 http://www.mymoneyblog.com/archives/2008/12/worry-free-investing-calculate-your-risk-free-savings-rate-for-retirement.html#comment-121042 A 5% allocation for VIPSX or TIP is recommended in "Gone Fishing Portfolio" ( Alexander Green). There is a 5% allocation for GDX or VGPMX or BGEIX as well. The concern that CPI estimates are incorrect can be balanced by allocating an equal percentage in assets that perform in -'ve correlation to inflation. The author wants us to put VIPSX /TIP in tax-deferred and if possible GDX/VGPMX in the same. A 5% allocation for VIPSX or TIP is recommended in “Gone Fishing Portfolio” ( Alexander Green).
There is a 5% allocation for GDX or VGPMX or BGEIX as well.

The concern that CPI estimates are incorrect can be balanced by allocating an equal percentage in assets that perform in -’ve correlation to inflation.

The author wants us to put VIPSX /TIP in tax-deferred and if possible GDX/VGPMX in the same.

]]> By: Terry http://www.mymoneyblog.com/worry-free-investing-calculate-your-risk-free-savings-rate-for-retirement.html#comment-121040 Terry Wed, 17 Dec 2008 19:49:31 +0000 http://www.mymoneyblog.com/archives/2008/12/worry-free-investing-calculate-your-risk-free-savings-rate-for-retirement.html#comment-121040 US government underestimates CPI by about 3-5%,so factor this into any long term investments. US government underestimates CPI by about 3-5%,so factor this into any long term investments.

]]> By: Eman http://www.mymoneyblog.com/worry-free-investing-calculate-your-risk-free-savings-rate-for-retirement.html#comment-121035 Eman Wed, 17 Dec 2008 18:56:22 +0000 http://www.mymoneyblog.com/archives/2008/12/worry-free-investing-calculate-your-risk-free-savings-rate-for-retirement.html#comment-121035 Very informative. However I feel that Real Estate Investing ( rental properties), with proper knowledge is still the best vehicle for retirement and worrying free investment Very informative.
However I feel that Real Estate Investing ( rental properties), with proper knowledge is still the best vehicle for retirement and worrying free investment

]]> By: Dan Isaacs http://www.mymoneyblog.com/worry-free-investing-calculate-your-risk-free-savings-rate-for-retirement.html#comment-121030 Dan Isaacs Wed, 17 Dec 2008 15:51:14 +0000 http://www.mymoneyblog.com/archives/2008/12/worry-free-investing-calculate-your-risk-free-savings-rate-for-retirement.html#comment-121030 If it's taxed at normal rates, I'm not so sure it would make sense over tax-exempt Munis. If it’s taxed at normal rates, I’m not so sure it would make sense over tax-exempt Munis.

]]> By: KD http://www.mymoneyblog.com/worry-free-investing-calculate-your-risk-free-savings-rate-for-retirement.html#comment-121028 KD Wed, 17 Dec 2008 15:23:39 +0000 http://www.mymoneyblog.com/archives/2008/12/worry-free-investing-calculate-your-risk-free-savings-rate-for-retirement.html#comment-121028 I didn't quite understand the Intermediate Calculations. What are they? The annual savings needed was a reasonable number for me - close to current amount I save. May be I should take less risk :) I didn’t quite understand the Intermediate Calculations. What are they? The annual savings needed was a reasonable number for me – close to current amount I save. May be I should take less risk :)

]]> By: Miss M http://www.mymoneyblog.com/worry-free-investing-calculate-your-risk-free-savings-rate-for-retirement.html#comment-121027 Miss M Wed, 17 Dec 2008 14:03:46 +0000 http://www.mymoneyblog.com/archives/2008/12/worry-free-investing-calculate-your-risk-free-savings-rate-for-retirement.html#comment-121027 I played around with it for a minute, I need to save $36,000 a year. It's a useful tool, it shows me I will need to take on more risk to make my goals. There's a bracketed range of retirement savings versus investment risk that will get you across the goal line, this is the conservative limit. I played around with it for a minute, I need to save $36,000 a year. It’s a useful tool, it shows me I will need to take on more risk to make my goals. There’s a bracketed range of retirement savings versus investment risk that will get you across the goal line, this is the conservative limit.

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