Author Archives: peter benedek
Fiduciary
Fiduciary In a nutshell In the simplest terms, a fiduciary duty requires the fiduciary to place the interests of the client ahead his own (or his employer’s or shareholder’s or anyone else’s). There are no shades of grey here: this is not about moral but legal obligation, it’s not about disclosing that you have a […]
“Probable Outcomes” by Ed Easterling
“Probable Outcomes” by Ed Easterling In a nutshell In “Probable Outcomes” Ed Easterling makes his heroic pitch for active investment management in periods of “secular bear markets”. While I did enjoy the book (lots of historical data and insightful analysis, but no how-tos for achieving success in the holy grail of active management) he hasn’t […]
“The Quest for Alpha” by Larry Swedroe
“The Quest for Alpha” by Larry Swedroe In “The Quest for Alpha” Larry Swedroe systematically dismantles the theory that active money management (defined by him as stock selection and market timing) can lead to alpha (returns above risk-adjusted benchmark) after fees. He argues that “if markets are highly efficient, efforts to outperform are unlikely to prove […]
Florida’s nonhomesteader snowbirds shafted again by new property tax Bill 381
Florida’s nonhomesteader snowbirds shafted again by new property tax Bill 381 In a nutshell Don’t let the reduced cap from 10% to 5% of nonhomesteaders tax value increase fool you. Florida’s new property tax related Bill 381 is pretty much a losing proposition for Florida’s snowbirds, compared to the already terrible status quo. Homesteaders (H) […]
Is the CPP low cost? No it’s not, but its existence can enable ultra-low-cost expanded-CPP or PRPP
Is the CPP low cost? No it’s not, but its existence can enable ultra-low-cost expanded-CPP or PRPP In a nutshell Current CPP cost is not low at 1.32% of assets (2010 fixed administrative costs=0.61% and investment related costs=0.71%) on an absolute basis, however on a relative basis it is much lower than what typical retail […]
Pfau: “Safe savings rates: A new approach to retirement planning over the lifecycle”
Pfau: “Safe savings rates: A new approach to retirement planning over the lifecycle” In a nutshell Pfau extends William Bengen’s analysis of SAFEMAX (safe maximum withdrawal rates over a 30 year retirement) to the accumulation phase and defines a SAFEMIN (safe minimum savings rate through one’s 30 working years necessary to deliver 50% of one’s […]
Am I on track for retirement?
Am I on track for retirement? In a nutshell An essential missing element from DC plans is a feedback loop which at least annually gives you an indication of whether you are on track to your planned retirement date and income level. Wade Pfau, whose work on safe savings ratesI reviewed a few weeks ago, […]
Risk perspectives: What is risk? Its measurement, dimensions, modeling (asset classes, risk factors and regimes)
Risk perspectives: What is risk? Its measurement, dimensions, modeling (asset classes, risk factors and regimes) In a nutshell After getting walloped twice in a decade with massive market crashes, suddenly everybody is interested in the subject of risk. You’ll find below a collection of perspectives on risk: what it is and attempts at measuring and […]
LIF- What is it and why important for Nortel pensioners
LIF- What is it and why important for Nortel pensioners In a nutshell Ontario government announced that as part of the Nortel pension plan windup procedures the pensioners in this case will not be compelled to convert the (reduced) commuted value of their pension to an annuity, but will also have an option to choose […]
How much life insurance do you need? …..and Risk and Uncertainty
How much life insurance do you need? …..and Risk and Uncertainty The rule of thumb for the amount of life insurance one needs is typically given as 10x (ten times) annual gross income. In fact things are a little more complicated than that. The required life insurance is not about replacing the value of the […]
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