Journal Club 12-08-23

Here's Journal Club 12-08-23! Every week, I hold a JOURNAL CLUB. After filtering through the articles on the web, I present a few that impacted my life this week. Be safe and stay well!

• Spending in retirement requires a fundamental shift in your thinking to go from a diligent saver to a spender. In fact, some statistics show only a fraction of retirees actually spend their retirement principal, with most being careful about doing so. The fear of running out of money in retirement causes people to oversave and exercise cautious withdrawal. This is causing a majority of retirees not to deplete their hard-earned money. So, what can we do to help change that? The White Coat Investor shares helpful tips in the article – Spend Your Principal.

• The commercial real estate market is undergoing significant changes due to increasing interest rates and other economic uncertainties. These challenges are affecting both buyers and sellers in the market. There is a gap between what sellers are willing to accept and what buyers are willing to pay, resulting in fewer transactions. This is causing investors to adapt their strategies to better align with the changing market conditions. To that end, the author of GoodEgg Investments does a deep dive to offer valuable insights into the future market expectations and investment strategies in the article – Goodegg Investor Letter – Q4 2023.

• “What is a reasonable expectation for stock market returns going forward?” This is a fair question that can significantly impact asset allocation decisions, investment horizons, and retirement planning. While it's impossible to predict future market returns, the Banker on FIRE examines the historical data to find out if long-term investing in the stock market is a lucrative endeavor in the post – A Magic Money Making Machine.

• There is a common misconception that lower interest rates alone would fix the housing affordability crisis. Per the R.E. Tipster, several factors come into play that influence home prices and are contributing to the housing market challenge. To break into homeownership in the current market, prospective buyers will need to get creative, and the author shares beneficial tips in the post – The American Dream Dilemma: The Unaffordability of Homeownership.

Read any interesting articles? We'd love it if you could please take a moment to share them in the comments below!

Thank you for reading and sharing,

Peter