The Relaxing Retirement Coach Blog

Monday, August 6th, 2018

Playing The Odds at Every Turn (with Updated Statistics)

Several years ago, I shared a “spirited” conversation we had with friends over dinner about health which led to some research on my part, and a revelation about the remarkable similarities to “financial health.”

I shared this story with a new member recently and it prompted me to update my research and reveal some new distinctions with you.

This will take a few moments, but I promise …

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Tuesday, July 10th, 2018

Does This Sound Like Anyone You Know?

Imagine for a moment that you’re having a conversation over dinner last Friday night with your brother and his wife.  Answering the common question, “what’s new”, he dives right in and shares what he’s been up to.

In addition to the nice home he owns and lives in with his family, he also owns a two-family home in town which he has been collecting rent on …

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Tuesday, June 12th, 2018

Don’t Let Your Kids Lose 40+% of Your IRA

A year rarely passes without me hearing another horror story in financial circles about families losing half of their parents’ IRA to taxes due to a careless mistake that was completely avoidable.

In the most recent situation we heard about, over $922,000 went to pay federal and Massachusetts state taxes.

This, and the countless questions I receive from members on this topic, always reminds me to reinforce …

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Friday, May 4th, 2018

The Stock Market is Having its Worst Second Quarter Since the Great Depression

Did that headline get your attention?

I’m sure it did. I’m sure it also rattled a lot of un-suspecting Bloomberg, CNBC, Yahoo Finance, and Market Watch viewers as well.

This is the headline that first ran on Bloomberg, with CNBC, Yahoo Finance, and Market Watch following suit right after.

Please pay very careful attention to the words they chose to use in the original Bloomberg story, “U.S. stocks …

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Monday, April 2nd, 2018

How to “Stomach” Market Volatility

During one of those days in February when market prices fell 3 to 4%, or over “1,000 points” as our friends in the financial media choose to refer to in order to embellish the story and capture your attention, one of our Relaxing Retirement members asked me a great question, “how can you be so confident even when markets are crashing?”  (those were her exact …

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Tuesday, March 6th, 2018

BEWARE: “Retire Reassured”

Did you see this headline last week?

On Tuesday, February 27th, in big bold RED letters above The Wall Street Journal newspaper name across the top of the newspaper, was the headline, “RETIRE REASSURED, The fear of outliving your money is real, but has a solution been right in front of us all along? See Page A5.”

In tiny letters in the top left-hand corner was the …

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Monday, February 19th, 2018

Market Corrections and Time

Most Americans walk proudly and carefree when market prices are climbing.

Risk becomes irrelevant. Strategic asset allocation looks boring, and disciplined diversification gets called into question because some asset classes outpace others. Many begin to lament not having all of their money in the winning asset class over the last year.

The fact that markets correct all the time and have experienced many ugly stretches during their …

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Friday, January 5th, 2018

We Begin 2018 With That Word Again

While shooting baskets at the gym with my son Michael down in Chatham last weekend, I observed him do something I’ve seen him do dozens of times over the years. Something we’re all guilty of and can learn from as I will expand on in a moment.

As I rebounded and fed him the ball after warming up for a bit, he went on a roll …

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Friday, December 8th, 2017

The Morningstar Rating Mirage

A couple weeks ago, new Relaxing Retirement members asked a very good question which prompted an important answer that I’d like to share with you. This is a very important issue to understand on many levels.

As we were reviewing their new Retirement Bucket Strategy™, they casually asked, “we assume that we’ll use 5-star rated funds to fill out our allocation” (almost assuming an affirmative answer.)

What …

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Friday, November 3rd, 2017

Should You Buy or Rent a Second Home?

Two Relaxing Retirement members have asked the same question in the same week: we’re thinking about buying a vacation home instead of renting again this winter? What do you think?

I have witnessed this progression with members countless times over the years: rent for a week in Florida or Arizona. Then, two weeks the next year. Then, a month. Then, two months, etc….until they really develop …

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Friday, October 20th, 2017

Happy 30 Year Anniversary

Do you know what yesterday was?

If you don’t: a) that’s a good sign, and b) there is a lesson for you going forward!

Yesterday, October 19, 2017 marked the 30th anniversary of the largest single day decline in stock prices.

On October 19, 1987, the Dow Jones Industrial Average fell 22.6%, and the S&P 500 fell 20.5% in one day.

Yes, you read that correctly. 22.6% in one …

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Friday, September 8th, 2017

What Can We Conclude From This?

An article in this past weekend’s Wall Street Journal was titled, “Investors Have Stopped Pulling Money From Stock Market…Longest Streak of Equity Withdrawals in 13 Years Has Come to an End.”

This sounds like a pretty big deal, doesn’t it?

The article goes on to say that Americans withdrew $30 billion from equity mutual and exchange traded funds over a 10-week span this summer, the longest streak …

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