Oblivious Investor

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Inflation-Adjusted Annuities No Longer Available: Now What?

A reader writes in, asking:“I’ve read on Bogleheads that the last insurance company stopped selling annuities with a CPI adjustment, meaning that there’s no nowhere to buy an annuity that has inflation protection. What are the implications for somebody nearing retirement?” It’s true: somet...

Investing Blog Roundup: Fama French Value Premium Update

Eugene Fama and Kenneth French recently released a new paper looking at the value premium (i.e., the additional returns earned by stocks with high book-to-market ratios — “value” stocks — relative to the overall stock market).The point of the paper was to determine whether the expected value p...

What Counts as Compensation (Earnings) for IRA Contributions?

I’ve received a few questions recently about what types of income count as “compensation” for IRA contribution purposes.The definition of compensation is important because your IRA contributions for a given tax year are limited to the amount of your “compensation that is includible in your gross inc...

Investing Blog Roundup: Is Vanguard’s “At Cost” Model Even Good Enough?

Vanguard’s claim to fame is that it runs everything “at cost” because of its ownership structure (i.e., no external shareholders demanding a profit). And the benefit to Vanguard clients has been tremendous over the years.In a recent article for Financial Planning, Allan Roth pointed out that...

Can I Change the Beneficiary of My 529 Plan/Account?

A reader writes in, asking:“Can I create a 529 account, contribute to it with my daughter named as the beneficiary, and then change the beneficiary to another family member if we end up wanting to help fund somebody else’s education?” The short answer is: it depends on who exactly the fa...

Why Longer-Term Bonds Have Greater Price Volatility (Interest Rate Risk)

A reader writes in, asking:“I am aware that bonds and bond funds with longer duration have greater price changes in response to interest rate moves than shorter-term bonds do. And given that, I understand that longer-term bonds generally have higher yields because of that higher risk. That mak...

Investing Blog Roundup: Keys to Financial Success

I hope you’ve all had an enjoyable holiday season.New Year’s resolution season will be upon us shortly, and Morningstar’s Christine Benz offers some guidance for anybody looking to improve their finances. Benz points out that there’s just a handful of things that make almost all of the difference ...

Retirement and 529 Changes from the SECURE Act

Last week Congress passed the Setting Every Community Up for Retirement Enhancement (SECURE) Act, which makes a list of changes to retirement account rules.What follows is a brief explanation of some of the points that are likely to affect many readers. To be clear, there’s a lot of material...

Investing Blog Roundup: Rethinking Financial Education

There’s a common refrain about personal finance: “We need to teach this in high school!”If you studied a foreign language in high school, but you do not speak it regularly in your personal or professional life, how much of it do you still know? How would you fare in a conversation? In a ...

Overweighting REITs: Why Don’t More Experts Recommend It?

A reader writes in, asking:“My husband & I are on a pension & SS. We have been retired for 17 years but inflation has been fairly low. However we can see our medical bills & insurance going up just about every year. I learned about REITS from reading on the internet. You ...

Investing Blog Roundup: Financial Therapy

I hope you all enjoyed your Thanksgiving holiday yesterday.For decades the field of behavioral economics has been pointing out that we are not simply spreadsheets with arms and legs. The decisions we make are frequently at odds with what a perfectly rational analysis would recommend. A newer field,...
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YES BANK Photo 2018-06-07 04:43

Rana Kapoor, MD & CEO, YES BANK - “RBI’s unanimously delivered 25bps hike has been balanced with a neutral stance, reinforcing MPC’s alacrity to retain inflation within its 4.0% target amidst hitherto buildup in price pressures led by crude prices. The rate action comes at a time when economic recovery now appears to be on a firmer footing. This stance allows RBI the choice to act in accordance with evolving macro and financial conditions, in both global and domestic economy in the coming months. Amidst many moving parts, this will entail a careful balancing of global headwinds from elevated crude prices, geopolitical tensions, and domestic policies of MSPs, state pay commissions on growth-inflation dynamics.” #RBIPolicy