Retirement Income

Comments

Post a Comment

Popular posts from this blog

How much one needs to save in retirement portfolio to retire comfortably in early sixties age

Wondering as how much one needs to save in retirement portfolio to retire comfortably starting with one's early sixties (say at 62 age) for next 25-30 years of joint longevity and be lucky enough to survive  extreme uncertain period such as 2000-2010 lost decade (with two major crashes resulting in virtually zero compounding )?  Needless to say, it all depends on household's ongoing expenses during retirement.  If one retires at 62, one can collect reduced social security pension (say 75% of full 67 age benefit). Non-working spouse can also collect half amount as spousal benefit at 62. Combined household reduced  benefit could be around 25K to 30K a year for professional workers like us. If household's annual expenses, including medicare/affordable-care health insurance co-premiums/copays (typically 5-6K annually for retired household for routine care) are in 60K range, then perhaps one needs additional income of 30K to 35K beyond social security pension. If one ha...
Read more

iShares Russell Top 200 Growth ETF (IWY) - One of best passive index ETF for large cap growth

Image
iShares Russell Top Growth ETF (IWY) is one of the best passive index ETFs for large cap growth asset class. It's quite inexpensive with expense ratio of just 0.20%. It has outperformed it's category by almost 25% for last 3,5,10 years period: Source: Morningstar Performance tab It's holdings are 12% cheaper (PE of 30 vs 34) than broad large cap growth index. It's projected long term earnings growth of 17% is quite comparable to that of it's index.  It's standard deviation of 18% is same as that of Total Stock index, even though it has outperformed   Vanguard Total Stock index by 50% in last 3,5 years period. Note that, as long term investor, my advice is to mostly stick with style-neutral broad market index. Styles come and go and those chasing today's hot style are mostly too late in the style game and eventually tend to lag.  As such, we can go for Large Growth factor bias for small portion of portfolio. My suggestion would be to go s...
Read more

SPDR® S&P Semiconductor ETF (XSD) - Excellent small cap semiconductor index fund

Recently I came across another *semiconductor* focused low cost index ETF which seems quite promising index. It's called SPDR S&P Semiconductor ETF ( *XSD*). Unlike iShares Semiconductor ETF SOXX ( https://financial-well-being.blogspot.com/2022/01/iShares-Semiconductor-ETF-SOXX-Passive-Semiconductor-technology-index.html ), which focuses primarily in *large* cap, XSD focuses into *small and mid* cap semiconductor companies of S&P Total index. It's *equal weighted* index and that's why it's average capitalization is in mid and small cap.Overall it's comparable or *even better* than SOXX. For example... - It's PE is comparable to that of SOXX - Dividend yield plus earnings growth of 16% as compared to lower 13% for SOXX - It's 3/5 year returns of 23/22% is 20% better than that of SOXX's 19/18%. It tracks *semiconductor small cap* sector which has been one of the top performer in technology sector with close to *20% annual return* for last 5, 10 an...
Read more