At Betterment, we’re constantly sharing content around the office. This list of weekend reading is a “best of” from what we came across. If you found an article insightful, helpful, or interesting during the week, let us know on Twitter or Facebook. You may find your name on the Betterment blog.
From around the web:
Thumbs Down on a Retiree Rule of Thumb (Kiplinger)
A traditional glidepath asset allocation in a target date fund shies away from stocks. But conventional wisdom doesn’t account for the growth potential many retirees should seek to make sure a post-income nest egg is sufficient. Read why some retirement income experts recommend retirees keep stock holdings intact until the middle to later years of retirement.
When Converting a Roth I.R.A. Back to a Traditional One Makes Sense (New York Times)
Investors frequently ask, “Should I convert my traditional IRA to a Roth?” But what about the other way around? This piece addresses when it could be more advantageous for investors. See if it makes sense for your retirement planning.
This week we also linked to a few articles that are not about investing, but underscore some of the ways algorithms and software-based advice are disrupting traditional industries, much like Betterment. Enjoy!
Say Goodbye to the Car Salesman (Wall Street Journal)
Another consumer activity moving online: purchasing cars. Power is now in the hands of the buyer, due to a wealth of research available on the Internet and real-time price updates via mobile apps. It’s the same kind of disruption we’re creating at Betterment through online-only investing.
The Coach Who Never Punts (Grantland)
Before getting settled for your football watching, take a gander at this Grantland piece about the coach who never punts and only onside kicks. Using statistical analysis and consistency in execution, this approach is a challenge to the way the game is played — much like algorithmic investing.
Don’t miss these on the Betterment blog:
Algorithms are better than humans when it comes to predicting future events — whether wine prices or the stock market.
Habit no. 1: Algorithmic rebalancing and dividend reinvesting keep short-term capital gains to a minimum.
Have a great weekend and happy reading!