Volatility is a measure of how the price of an asset – be it a stock, an option or a fund - changes. Volatility tracks how much the price moves and also how fast it changes. Beta is a commonly used statistical measure that represents volatility, and the higher beta is, the greater the risk. There’s usually a reference index such as the S&P 500 and if a stock perfectly tracks the index, it is said to have a beta of 1.0. If it changes more than the index, be it on the up or downside, it is a high beta stock. For example, a stock with a beta of 1.5 means that historically, it has moved 150% for every 100% move in the benchmark index. Mutual funds nowadays provide free volatility measures so you can get a good feel for how stable the fund is year in and year out.

Low or No Surprises Supports the Case for Annuities in Retirement

In a basic sense, information theory measures the level of surprise in a message.

A highly informative message will come as a complete surprise and tell you something about which you had no previous knowledge.

Sounds pretty good, right—of what use is it to be told what you already know?  Well, there are actually cases where information is not so welcome.

Key Phrases Autotag: 

Why Even Bother with Self-Service Investing During Retirement

I have a huge amount of sympathy for many of the people who are recently retired or close to retirement.


Achaean Financial is Proving Innovation is Alive and Well in the Annuity Business

Lorry Stensrud, a seasoned executive turned entrepreneur, is on the leading-edge of retirement income product development with his new Venture Achaean Financial.

Achaean’s Income Plus+ product provides a relatively high level of guaranteed starting income while maintaining both...

Bloomberg on Lifetime Income Boom

An article in Bloomberg discusses the strong revenue results recently reported by many

Sequence of Returns Risk Report

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