CERF Blog

The key to sustainable wealth is to tie your level of consumption spending to the product of your total wealth (including financial wealth and human capital, or the present value of future net income) and the after-tax real rate of return.  If you do this, the affluence that you enjoy in your youth, due to… Read more

A financial planning rule of thumb that you often hear is that the percentage allocation to safe assets (cash or bonds) should increase with age, and accordingly the percentage allocation to the risky asset (equities) should decline with age.  One popular version is that your allocation to equities should be no higher than 100 minus… Read more