Author Archives: peter benedek
Estate planning
Estate Planning You should consider the following as purely a very short introduction to Estate Planning. If you have any assets or dependents you need an estate plan, otherwise you’ll have to rely on the wisdom of legislation and the courts, operating at the speed of government bureaucracies and speed of the courts. I will […]
Behavioral Finance
Behavioral Finance Some of the pioneers of behavioral finance are Kahneman, Twersky and Thaler. This short introduction to the subject is based on John Nofsinger’s little book entitled “Psychology of Investing” , an excellent quick read for anyone who is interested in learning more about behavioral finance. Much of modern finance is built on the […]
Life-cycle investing
Life-Cycle Investing: Revolution or Evolution-Are you ready for its implications? Background The planning and investment advice, much like that offered at this website, has been rolling along on a framework based on wealth accumulation by saving and investing for the long-term. The emphasis is generally heavily slanted toward equities, which historically delivered much higher […]
Cross-Border Living
Cross-Border Living If you are a Canadian and own property in the U.S., or if you spend or planning to spend significant portion of your time in the U.S., or are working in the U.S. you must read Bob Keats’s “Border Guide – A guide to living, working and investing across the border” N-th Edition […]
Contribute to RRSP or TFSA? 401(k) or Roth 401(k)? Tax-free or Tax-deferred?
(Originally posted October 27, 2008) The short answer is that there is no short answer. This is question that American investors had to struggle with for a while, and fortunately Canadians will have to grapple with starting next January when TSFAs become available here. Basically there are two broad categories of investment vehicles: tax-free (or […]
P/E ratio– it can be confusing and misleading
P/E Ratio – it can be confusing and misleading About three months ago Charlie Minter and Marty Weiner wrote a very succinct article entitled “What’s the Real P/E Ratio? – The bearish view on earnings makes the most sense” , trying to clear up the massive confusion that usually surrounds P/E ratios that are quoted […]
Concentration vs. Diversification
Concentration vs. Diversification This topic on “concentration” was triggered by a number of recent articles about managers focusing on concentrated portfolios, the latest a blog by Jonathan Chevreau on “Steadyhand- A fund family for mutual fund sceptics” . Chevreau talks about Tom Bradley’s new actively managed five -fund family which differentiates itself by charging reasonable […]
‘Core-Satellite’ Investment Approach
‘Core-Satellite’ Investment Approach (Originally posted December 13, 2007; re-posted in 2012) The debate about advantages of active vs. passive investing should be over. The overwhelming evidence suggests that it is extremely difficult to beat the indexes on a sustained basis, especially after management expenses, and it just as difficult to identify a priory who will […]
Structured products I
Structured Products I In my September 30, 2007 Hot Off the Web, I mentioned John Authers of the Financial Times in “Structured vehicles may be way forward” discussing how, in the wake of the relatively poor recent performance of hedge funds and private equity, the emphasis may be shifting away from hedging to guarantees in […]
Longevity Insurance (Delayed Payout Annuities)
Longevity Insurance (Delayed Payout Annuities): Forget About Immediate Annuities- The Most Efficient Annuitization is 5-10% of Wealth Allocated to Longevity Insurance! Scott, Watson and Hu in their Pension Research Council paper “Efficient Annuitization: Optimal Strategies for Hedging Mortality Risk” prove what readers of this website have heard from me many times before (though expressed only […]
RetirementAction.com 