Learn
Financial concepts, clearly explained
Explore the ideas and tradeoffs behind a thoughtful retirement plan.
Investing
Mean reversionGuideUnderstand the idea that unusually high or low returns may move back toward a longer-term average.Real and nominal returnsGuideUnderstand the difference between account growth in dollars and growth in purchasing power.Volatility and correlationGuideLearn how the spread and relationship of investment returns shape portfolio risk beyond the average return.Portfolio rebalancingGuideUnderstand why portfolios drift from their targets and the tradeoffs involved in bringing them back.
Retirement planning
Investable assetsGuideUnderstand which assets are included in projected account balances and which are shown elsewhere.Retirement funding rateGuideLearn what the retirement funding rate measures and how to interpret it alongside other plan results.Probability of successGuideUnderstand what the simulation result counts, what it leaves out, and how to use it when comparing plan choices.Planning horizonGuideChoose an end age that tests whether the plan can support a long life without treating it as a prediction.Retirement simulationsGuideUnderstand why the plan tests many market paths and what the resulting range can—and cannot—tell you.Sequence-of-returns riskGuideLearn why the order of market gains and losses can matter as much as the long-run average return.Withdrawal orderGuideUnderstand how the order of account withdrawals can affect taxes, cash flow, and future flexibility.Required minimum distributionsGuideUnderstand why certain retirement accounts must distribute money and how those withdrawals affect a plan.Roth conversionsGuideLearn why paying tax on retirement savings today can sometimes improve flexibility or after-tax value later.Allocation glide pathGuideUnderstand how and why a portfolio’s target mix may change before and after retirement.Marginal and effective tax ratesGuideLearn why the rate applied to the next dollar can differ from the average rate paid across all income.Social Security claiming ageGuideUnderstand the tradeoff between starting retirement benefits sooner and receiving a larger monthly amount later.