You must reply to at least two colleagues in a manner that extends the discussion. A simple “I agree/disagree” will not be accepted. respond in a manner that further extends the discussion.

post 1.

Question 3: Open topic. Please choose a topic that interests you and is related to the course materials. If this topic is from a recent news, please make sure to share the link in your post.

This article I picked talks about “Implied Volatility” and why it can have an impact on investors decision making. Implied volatility is represented as a percentage and it helps us determine how much risk speculation from investors.

The article also discusses how an investor can utilize implied volatility in his or her investment strategies. “An implied volatility trading range is typically calculated under the assumption that prices will stay contained within a one-standard deviation move. Mathematically, this means that there is a 68% statistical probability that price action will fluctuate within the defined implied volatility trading range over a specified time frame (Dvorak, 2020).”

Dvorak, R. (2020, November 20). Implied Volatility: What is it & Why Should Traders Care? Retrieved November 20, 2020, from https://www.dailyfx.com/forex/fundamental/article/special_report/2020/11/19/implied-volatility-what-is-it-and-why-should-traders-care.html

post 2.

Unrealistic Retirement Expectations

I think income replacement is the most common area people tend have unrealistic expectations over.  I found this article citing research done by Nest Corporation (Links to an external site.) stating that approximately 60% of people expect to retire with an annual income of 50-100% however only have enough savings to provide an income replace of 29%.  One reason they suggest as a driver towards this expectation is that low income earners cannot envision themselves living on less than earn now.  That can be a difficult scenario to address and certainly not one anyone wants to think about.  In an earlier lesson we discussed how difficult financials matters can be to share with family members so those facing such circumstances may have a hard time finding the help they need.  This is why it’s so important to start early as we have plenty of evidence to support that even low income earners can prepare for an adequate retirement given a 25 or more year horizon.  Retirement is suppose to be some of the most enjoyable years of one’s life and facing the reality that the quality of your life can regress at that point is clearly hard to fathom and even harder to accept.  While there are certainly other unrealistic expectations people may have, a lot of them will certainly be related to an expectation of more savings than you’re on track to have. 

http://www.actuarialpost.co.uk/article/great-expectations-in-retirement-are-unrealistic-for-many-9690.htm