The Retirement Killer: Volatility Portfolio failure, meaning you run out of money during retirement, is directly related to volatility. As volatility goes up, the expected failure rate of a portfolio taxed with making withdrawals rises almost exponentially. Unfortunately most retirees don?t appreciate the link between portfolio volatility and running out of money while still alive, and many don?t even have a good idea of their portfolio?s volatility.
GDP Revisions: What's Good for This Quarter is Bad for the Next Third-quarter real gross domestic product (GDP) increased 3.6% at an annualized rate, according to the second estimate from the Bureau of Economic Analysis. This is much faster than the preliminary estimate of a 2.8% rate. The driving force behind this revision was a surge in private inventory investment, adding 1.68 percentage points to the growth rate. Stripping out the inventory effect, which gives a better reading of the core growth of the economy, the economy advanced at a 1.92% pace.