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PRPP: An agreement to kick the can down the road and deliver more fees to Canada’s financial industry
(Originally posted Dec 21, 2010; re-hosted in March 2012) In a nutshell Given the limited granularity available in the PRPP (Pooled Retirement Pension Plan) announcement, we must conclude that this is an agreement to do nothing, except perhaps a handout to the financial services industry at the expense of the average Canadian. By taking advantage of […]
Pension Reform: It’s not rocket science
Pension Reform: It’s not rocket science In a nutshell With the latest re-vectoring of the federal government’s ideas on pension reform (PRPP), we compare it to some of the more meritorious proposals tabled for pension reform (or already operational in the Saskatchewan SPP). PRPP comes up wanting in comparison to the others based on the […]
“13 Bankers” by Simon Johnson and James Kwak
“13 Bankers” by Simon Johnson and James Kwak In a nutshell “13 Bankers” is about how the powerful financial industry/oligarchy has burrowed itself deeply into government policymaking circles and under the banners of “free-markets and capitalism” they have succeeded in creating an almost regulation-free system where they get most of the upside while the taxpayer […]
Structured products: BMO Life Stage Retirement Income Portfolios
Structured products: BMO Life Stage Retirement Income Portfolios Background In the January 24, 2011 Hot Off the Web blog I mentioned a new product from BMO, which I described as fitting into the category of products of expensive and opaque nature, the “BMO Life Stage Retirement Income Portfolios” . At the time, I also had […]
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 […]
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