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blog23sep2007
Hot Off the Web Jonathan Clements in “Harder than building wealth: Keeping it” he takes concern about retirement finance to a new level, including a factor not usually discussed in retirement finance articles. (Of course you read many reports about whether the old 70% of pre-retirement income target may be obsolete, given the younger, healthier […]
Time Diversification: Stocks are less risky over the long-term??? (Not!)
(Originally posted August 6, 2010) The myth of “time diversification” promises that if you invest (in risky assets) for the long-term you can eliminate risk, i.e. time reduces/eliminates risk. Tell that to somebody who was invested for 20 years with a 100% stock allocation (e.g.S&P500) and was planning to retire in the spring of 2009; […]
What Now? (October 13,2008)
What Now? (October 13,2008) In a Nutshell The impact of the recent market drop must be assessed on our financial health and corrective action may be required: -review current annual spending in detail, and set budget for next near -estimate expected “must” and “want” expenditures in retirement -identify the known (secure) pension sources of income […]
Are “target-date” funds or age-independent “fixed-asset allocation” right for you?
Are “target-date” funds or age-independent “fixed-asset allocation” right for you? In “Target-date funds I” and “Target-date funds II” I discussed some of the advantages and disadvantages of target-date funds and some simple methods for doing a low-cost implementation. In my May 11, 2008 Hot Off the Web blog I referred to a recent article in […]
Target-Date Funds II
Target-Date Funds II A few weeks ago in my Target-Date Funds (also called Lifecycle Funds) blog, I outlined some of the advantages and potential problems with them. I promised to look at a simple model that you may choose to use to implement your own custom Lifecycle/Target Date Fund using existing ETFs. In “Lifecycle funds: […]
Target-Date Funds I
Target-Date Funds Target-Date funds have a lot to offer. They are supposed to be a “single decision” fund and completely maintenance free. Once you selected your target retirement date, then just choose the Target-Date fund closest to that date and you are set until retirement. Life-time income funds are the complementary “single decision” funds that […]
Markopolos: “No one would listen: A true financial thriller”
Markopolos: “No one would listen: A true financial thriller” The story Harry Markpolos’s book is a fun and informative read. He approached the SEC the first time in 2000 with documentary evidence and recommended an investigation of Madoff’s fund. We all know how this story ended in 2008. The book reads like a thriller, well […]
Feedback on “Securing Our Retirement Future: Consulting with Ontarians on Canada’s Retirement Income System”
Feedback on “Securing Our Retirement Future: Consulting with Ontarians on Canada’s Retirement Income System” Peter Benedek, CFA, RetirementAction.com Recommendations- Highlights Of Canada’s three-pillar retirement income system, only Pillar 1 (OAS/GIS) is doing its job of minimizing seniors’ poverty. Pillar 2 (CPP/QPP) is failing due to very low replacement targets and low earnings ceilings, thus dramatically […]
“$windler$” by Al and Mark Rosen
“$windler$” by Al and Mark Rosen In a nutshell The Rosens’ book “Swindlers” can be best summarized in their own words that: all scams are “dependent on conflicted auditors, inadequate or non-existent regulations, ill informed directors, crooked managers and gullible investors.” They also say that scams remain “undetected because auditors, regulators, lawmakers and self-regulated professions […]
New Ontario pension windup flexibility is great but must include ‘self-administration’ option
New Ontario pension windup flexibility is great but must include ‘self-administration’ option It is wonderful to read that Ontario Finance Minister Duncan decided to broaden the available options upon pension wind-up, rather than forcing pensioners into an annuity. The Nortel pensioner group NRPC’s announcement in the context of the so called Financial Sponsorship Model-FSM (ominously) […]
RetirementAction.com 