Peace of mind, âenough,â and simplicity deserve a seat at the table, too.
[Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_improvingfinances&utm_content=32033&elqTrackId=2eef6b1faf2647e9b7a310a231debdb0&elq=caf791802df64dcc952fc872d4630d3c&elqaid=32033&elqat=1&elqCampaignId=14795) [Improving Your Finances] Improving Your Finances with [Christine Benz]( [Christine Benz] Iâve called it âthe tyranny of what can be quantifiedââthe investment industryâs obsession with creating measuring sticks for success. On Morningstar.com you can find the Morningstar rating (aka âthe star ratingâ) and alpha, as well as max drawdown and upside/downside capture ratios. There are also Treynor ratios, Sortino, and Sharpe ratios. And donât forget the efficient frontier! Of course, we do need data to hold investment managers accountable, and our take-home returns are the best tangible show of whether weâve succeeded. But I would argue that your investments and your financial plan should factor in other variables as well. Does a given investment or financial decision provide you with peace of mind as you define it? Have you crafted a plan in line with your own definition of âenoughâ? [I wrote this week]( about how the right financial and investment plans should help us achieve our financial goalsâthatâs table stakes at this pointâbut also conform to some of these softer but equally important considerations. I had a chance to bang the drum for simplicity and ease of use in that piece, and those qualities become even more important as you move into retirement drawdown mode. The logistics of retirement decumulation are complicated enoughâwithdrawal rates, tax management, and [whether to annuitize]( is why I like the like idea of [embracing a minimalist investment portfolio for in-retirement](. (I created [a tax-efficient version]( too.) Of course, with multiple account types, you can only pare things down so much, but I shared some thoughts for streamlining in [this article](. Finally, Iâll sign off on a bright note: While thereâs been a lot of hand-wringing about whether new retirees could be walking straight into a bad market environment, John Rekenthaler shared [a good news angle on the story](. Even if starting withdrawal percentages ought to be lower to account for high equity valuations and low bond yields, the total safe withdrawal amount may in fact be larger because most retireesâ portfolios are larger than they were a few years ago. Enjoy the fall season, Christine Benz [There's More to Investing Than Just Risk and Return]( In praise of what can't be measured. [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] [It's Open Enrollment Season. Have You Taken a Good Look at an HSA?]( For high-income investors who are maxing out other tax-sheltered accounts, the high-deductible healthcare plan/HSA combo is close to a no-brainer. [Read More]( [Retiring Early? What to Keep in Mind]( Opting into the "Great Resignation" calls for mindful choices. [Read More]( [Lynnette Khalfani-Cox: 'You Can't Borrow for Your Retirement']( Parents shouldn't put themselves in financial jeopardy to pay for education, says this author and expert in college funding. [Read More]( [Your Guide to Annuities]( In this special report, discover whether annuities should play a role in your retirement portfolio and how to find the right fit. [Read More]( [Tadas Viskanta: Luck Plays a Big Role in Investing]( The financial blogger and Ritholtz director of investor education discusses direct indexing, retirement income, and his go-to resources for perspective on the markets and personal finance. [Read More]( Listen Now
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