Listener Q&A where Andy talks about:
- Why you know the return you'll ultimately realize if you hold a bond to maturity, but can't know the return you'll eventually realize if you instead hold a bond fund ( 7:13 )
- A commonsense intuitive answer why bond prices decrease (increase) when interest rates increase (decrease) ( 9:56 )
- His thoughts on holding only fixed maturity instruments such as CDs, bullet ETFs, individual bonds and MYGAs for a fixed income allocation instead of traditional open-end bond funds ( 13:56 )
- How to distribute money from a 401(k) when you can't pick which particular investments to sell within it ( 22:44 )
- Will U.S. income tax rates eventually increase, and by how much ( 31:23 )
- How to make an investment policy statement ( 43:41 )
- What distribution plans and strategies typically look like for his clients ( 51:23 )
Links in this episode:
Morningstar article - How to Create an Investment Policy Statement
To send Andy questions to be addressed on future Q&A episodes, email andy@andypanko.com
Retirement Planning Education, with Andy Panko