Archives
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 […]
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 […]
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