One of the largest factors in being successful with money is the ability to manage debt. In modern America, we have become accustomed to taking on ever-higher levels of debt. This substantial growth in household debt is a major issue for both individuals and society as a whole. The growing burden of debt The key … Continue reading Funding consumption with debt

One of the best-established 'anomalies' in investing is the value premium. Over long periods of time, value stocks have substantially out-performed growth stocks. Over the last decade or so, however, growth has trounced value. On the other hand, even over the last twenty years, value investors have been well-rewarded. Blackrock's Dr. David Ang provides a … Continue reading Under-performance of value investing

There are many experts who believe that the current paradigm for retirement plans is so flawed that we should scrap it and try something radically different. Dr. Teresa Ghilarducci is one leading voice in this area, for example. The data suggesting that we need a change are compelling. Only about 50% of workers have an … Continue reading Fixing U.S. retirement plans

There are many issues that we, as a society, are tending to ignore even as they become more severe. One of these is the under-funding of pensions. Around the U.S., the remaining public pension plans have far less in assets than they need. Cook County Illinois, where Chicago is located, is the home of quite … Continue reading The looming public pension crisis

One of the ways that people rationalize the decision to delay saving for retirement is planning to retire at an older age, if at all. That's a sensible aspiration, but many people will lose their jobs in their fifties and will never again come close to their previous incomes, even if they do find full-time … Continue reading Your career may be shorter than you think