0%
Long-term yield after inflation, taxes, fees (ACT230, ACT240)
FT blog Mar 19, 2012: Wolf on near-zero real rates,
cause of many of our woes
WSJ
Oct 25, 2010 on negative real yield TIPS
Zweig in WSJ Jan 16, 2010 on 1% + net net net yield
Zvi Bodie on PBS June 12, 2009: risky to assume stocks will beat
inflation-indexed bonds
Brad De Long Oct 2008 on zero 10 year real return on stocks (even without taxes
and fees)
Since the 1970s, one dollar has decreased a lot in purchasing power. Sexism
has reduced, too.
Shorts (ACT245, ACT349)
FT (Financial Times, UK) July 16, 2008 on short squeeze and 'hard to borrow'
WSJ May 16, 2008 on bubbles, housing, Chinese Class A and B shares
Mortgages (ACT230, ACT240)
Walk Away mortgage calculator April 2009 Many problems with this,
starting with lack of discounting of future payments
Bank of Montreal October 2008: semi-annual compounding of martgage
Toronto Star Jan 29, 2008 on 33 year mortgage impact on monthly payment
Repos (ACT245)
WSJ Mar 18, 2008 on repos and the Mar 16, 2008 Bear Stearns rescue
Futures, forwards and options (ACT245, ACT349)
Globe
Aug 10, 2010 on Manulife actuaries' $2 billion loss (actuaries might
disagree)
Swaps (ACT245, ACT349)
Globe and Mail US Futures quotes
Toronto Gas
Toronto Home Gas Supply Commodity Swap
Toronto gas price quarterly change
Bloomberg Feb 23, 2010 on Italy's profit on swaps
Retirement savings (ACT230, ACT239, ACT240)
WSJ Feb 8, 2012 on 4% drawdown rule
Financial TImes Aug 12, 2009 UK Inflation-Indexed ('RPI") annuity purchase rates
T Star Mar 16, 2009 Malcolm Hamilton: 30% of pay for federal retirement
T Star Oct 28, 2008 on 4 percent drawdown rate
T Star Apr 2, 2008 on Ontario Teachers' Pension Plan p1.
p2.
Above from Globe and Mail comments May 25, 2012
$40,000 per year indexed worth $850,000
Necessary retirement savings rate calculator for these ACT courses in Excel
PDF version
Example of frequently-seen bad advice on savings
Retirement calculator from AARP
One of the best available online.
T Star June 21, 2007 save 33% of pay for retirement
Or a non-indexed pensioner can be job-hunting at age 80 after 30 years
inflation at only 3%: 1.03-30=0.412