Vanguard Blog

My first personal finance teacher

Catherine Gordon — Tue, 15 May 2012 05:55:50 +0000

The timing of Teacher Appreciation Week (May 7–11) and Mother’s Day (May 13) got me to thinking about what my mom taught me about finance. While mothers may not be teachers in the official sense, they play an important role in teaching us about the world around us. I remember learning about the concept of [...]

Fees: out of sight, out of mind

Steve Utkus — Wed, 25 Apr 2012 12:43:33 +0000

One of the vexing questions in the investment world is why many investors are inattentive to fees. While Vanguard has helped create a class of investors that’s fee-conscious and fee-aware, the fact remains that many individual investors remain in high-cost funds (and in other high-fee advisory strategies). It’s somewhat reassuring that recent data indicate many [...]

Why investors should ignore the Fed

Joe Davis — Thu, 19 Apr 2012 19:00:55 +0000

On December 16, 2008, the Federal Reserve cut its target for the shortest-term interest rate to nearly 0%. The Fed’s bold policy action was one of many aggressive steps taken to stabilize global financial markets and a U.S. economy that was in freefall. The Fed’s goals have been clear: prevent broad-based wage deflation, lower borrowing [...]

Negotiating your retirement date

Ellen Rinaldi — Mon, 16 Apr 2012 13:00:44 +0000

The headline “He Wants to Retire … but She Doesn’t” was one of the most popular articles in the April 9 Wall Street Journal. What struck me most was the author’s comment that many of the people she interviewed said the issue of when to retire was a point of disagreement with their spouses or [...]

Investment costs hit retirees with double whammy

John Ameriks — Tue, 10 Apr 2012 18:02:20 +0000

A while back, I wrote about how people often miss the impact of investment costs on wealth accumulation. Today, I want to make sure readers know that it’s as critical for retirees (people spending money) to think about how costs hit their portfolios as it is for people who are still saving. In fact, you [...]

A crisis of confidence?

Steve Utkus — Fri, 23 Mar 2012 12:20:56 +0000

The latest figures are out from the Employee Benefit Research Institute (EBRI) in Washington, D.C. Unsurprisingly, “retirement confidence” remains down from its peak in 2007, and is at levels similar to what we saw during the Great Recession. What’s going on? In 2007, fully 70% of American workers were either “very” or “somewhat” confident about [...]

TVs and mutual funds: Do you get what you pay for?

Charu Chander Gross — Tue, 20 Mar 2012 14:08:54 +0000

Two years ago, my husband and I bought a TV. He wanted the super-duper one. I wanted a good deal. We went with the good deal. Fast-forward two years, and the TV we got only turns on and off when it wants to. Now, every time the TV goes on the fritz, my husband resists [...]

Why I still own Treasuries

Joe Davis — Thu, 15 Mar 2012 12:57:15 +0000

Bond funds have generally been on a total return “tear” the past several years, given the sharp decline in U.S. Treasury yields. Bond fund cash flows have been solid, especially into corporate and municipal bond funds, which tend to carry a higher yield than a similar-maturity Treasury bond fund. Unfortunately, strong trailing returns and strong [...]

Everyone loves a bargain

Craig Stock — Mon, 12 Mar 2012 13:05:51 +0000

We humans are funny animals. At times, I’ll scour the internet trying to find the cheapest airline flight, perhaps saving $100 or $200, and feeling quite pleased with myself for doing so. On some other purchases, I confess, I do no comparison shopping at all. A recent example was in choosing countertops for a kitchen. [...]

A sign of slumbering—or of hope?

Craig Stock — Mon, 27 Feb 2012 14:50:15 +0000

A Wall Street Journal report, published on February 21, notes that small-capitalization stock prices, as measured by the Russell 2000 Index, are nearing an all-time high. But investors aren’t pouring money into small-cap stocks. The story, “Small-cap rise is big snooze,” notes that small-cap funds have seen steady net outflows of cash, not big inflows. [...]

Retirement ready—or not?

Steve Utkus — Tue, 21 Feb 2012 17:50:23 +0000

A new report just came out on the retirement prospects for baby boomers.* Its top-line result was that 40% of all boomers aren’t prepared for retirement. Whenever the topic turns to retirement in America, the language is fairly dismal. Last week, I saw a flyer from an investment company that highlighted a crisis in retirement [...]

Avoiding risk? You might not be

Charu Chander Gross — Mon, 13 Feb 2012 06:18:14 +0000

I don’t consider myself a risk-taker. I change the batteries in my smoke detectors, double check that my doors are locked, and always wear my seat belt. I can absolutely relate to the fear that many young people have when it comes to investing. My fellow blogger Karin Risi recently wrote about how Generation Y [...]

$10 salads, $4 gas, and low inflation

Joe Davis — Mon, 06 Feb 2012 16:35:19 +0000

Note: For an expanded look at Vanguard’s outlook for inflation—and an explanation of the data behind our analysis—read our interview with Joe Davis on vanguard.com. As Vanguard’s chief economist, I’m often asked about inflation. And it’s an important topic. As the 1970s and early 1980s taught us, a persistent and unexpected run-up in inflation can [...]