Month: December 2015

Bring Back The Tontine for Retirees?

In today’s world, newly-minted retirees are being forced to take on risks that their predecessors did not have to deal with. Prior to the 1990s, a retiree could typically count on a guaranteed amount of income from social security and from company pensions lasting until he or she passed away.   In effect, the federal government…
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Why Are Investors Still Worried About GDP?

In a recent 2016 investment outlook paper, Joseph Davis, Vanguard’s chief economist, estimated annual global equity growth over the next five to ten years to be in the 5%-8% range, significantly below the 10% average from 1926-2014. He based this expectation to a large extent on lower U.S. and international GDP real growth rates.  While…
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How to Maximize College Financial Aid With 529s

Last year I wrote about a strategy involving 529 plans designed to maximize the financial aid a college student could receive (see https://www.cognizantwealth.com/2014/03/10/best-place-to-hold-your-529-plan/).   To summarize the original strategy: if you split your savings into two 529 plans, 75% in one owned by the student’s parent and 25% in one owned by the student’s grandparent, you…
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