Category Retirement Finance
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 […]
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 […]
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 […]
Annuities IV
Annuities IV So there are no simple rules to decide if an annuity is appropriate for you. As a general statement, I can see no compelling reason to start considering annuities as part of a retirement plan, until there is better disclosure of the fees and charges that go into the pricing of annuities […]
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