The Bond Market Party Is Winding Down

Parties rarely last 30 years, but the one that the bond market threw did.

Over the past 30 years, bonds have enjoyed outsized gains, but the celebrating among fixed-income investors has quickly ended.

In April, Bill Gross, an investment manager at PIMCO and probably the nation’s most widely known fixed-income expert, turned to Twitter and announced the end of the 30-year run in a Tweet.

A Hidden Social Security Penalty

Nearly three out of four Americans start their Social Security retirement benefits at age 62. What many people don’t realize is that there is a hidden penalty for some retirees who can’t resist early-bird Social Security benefits. Younger Baby Boomers will have to absorb a greater financial hit for claiming benefits at age 62 than older retirees.

How to Handle Investment Winners and Losers

If you are like the typical investor in recent years, you have been very happy with your bond portfolio.

The chart below from Charles Schwab dramatically illustrates how widely the love affair with bonds has spread. You are looking at the net inflow of cash into domestic stock mutual funds versus total bond mutual funds from 2008 through most of 2012.

RIA Stands for You

Mark Dowling and Dale Yahnke founded our firm 20 years ago when the Registered Investment Advisor (RIA) model of providing financial advice was in its infancy. In the early 1990s, RIAs offered investors an independent alternative to the then predominant sales-oriented, broker-driven model of investment advice. As fiduciaries, RIAs are duty-bound to put clients’ interests first. In addition to acting as a fiduciary, Dowling & Yahnke seeks to minimize potential conflicts of interest by operating as a fee-only investment advisor.

Dowling & Yahnke's Perspective on Recent Stock Market Volatility

A week ago, we wrote about tracking the House of Representatives’ passage of a compromise bill increasing the federal debt ceiling and decreasing spending, a bill that was eventually signed into law by President Obama.  The ensuing six trading days saw extreme volatility in various markets, with equities worldwide trending lower.  In just the eleven trading sessions following July 22nd, the S&P 500 lost 17% of its value, wiping out all of its gains since last September.  (Yesterday’s market action provided some significant relief, as the S&P 500 rose 4.7% on news that the

Dowling & Yahnke Perspective on Debt Ceiling Debate

This past Sunday, after many weeks of contentious debate, the White House and Congressional leaders finally reached an agreement on a deal to raise the debt ceiling and reduce federal spending. The deal was subsequently approved by both houses of Congress on a bipartisan basis, and was signed into law by President Obama on Tuesday.  By raising the debt ceiling, the legislation enables the U.S. Treasury to issue additional debt securities to fund government operations.

Retirement Planning

Retirement planning has changed over the last decade.  There is a lot more to retirement planning today than simply saving money.  Millions of Americans worry they will not have enough money to live comfortably once they stop working.  The decisions you make today will have an impact on how you live tomorrow.  There are many issues to consider as you approach retirement.  How much should you save each year while working? At what age should you stop working?  Should you work part-time for a while?