Life-Cycle Investing

Life-cycle investing deals with consumption smoothing which basically involves spreading financial capital (accumulated assets) and human capital (the earnings during one's working years) over an entire lifetime--including retirement. Life-cycle investing deals with the challenge of combining elements of saving, diversification, hedging and insuring so that there is an optimal level of consumption and standard of living throughout one's entire lifetime. Human capital and most importantly the relationship between human and financial capital are fundamental aspects of life-cycle investing. The notion that consumers care more about lifetime consumption than wealth or portfolio value is also a key tenet of life-cycle theory.

Successful Investing is not the Driver of a Successful Retirement

Evan Cooper writes that investing is less relevant to a comfortable retirement than most people think. Appropriate levels of saving and spending are the real drivers of adequate retirement resources. Not necessarily something that the asset management and accumulation industry wants to acknowledge, but the views expressed make perfect sense. This poses a challenge for advisers, because investing has sex appeal and most schnooks are under the impression that finding the right investment or the...
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An Interview with Retirement Planning Expert Henry Hebeler


Henry "Bud" Hebeler is a former Boeing executive who has been running a retirement planning...


Human Capital is the Best Inflation Hedge

Warren Buffett commented on the likelihood of future inflation during the most recent...

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Listen to Zvi Bodie When it Comes to Retirement Planning

Zvi Bodie is absolutely one of the most honest and refreshing voices in finance and economics.  Professor Bodie also happens to be an advocate of life-cycle investing.

A recent interview with Bodie is highly recommended and available in U.S. News & World Report.

Highlights from the interview include:

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