Mandelbrot and the Misbehavior of Markets Stock market returns are not just random—they are randomly random. That is, the returns of the market are stochastic. While I love the word stochastic, it and Chaos Theory are not well understood […]
How Risk Tolerance affects Asset Allocation Asset allocation—how you balance the stocks and bonds in your portfolio—is the most important decision an investor makes. This is not overstated! Asset allocation depends on your risk tolerance and age. Risk tolerance is […]
Can a DIY Investor use Behavioral Investing to Meet Long-Term Goals? Behavioral investing is style of investing that stems from an age-old battle in investment theory. The basic question: are investors mostly rational or irrational? If they are irrational, […]
Asset Withdrawals in Retirement: Optimal Strategies What is the optimal withdrawal strategy for Retirement Income Portfolios? You have your portfolio, sure—your stocks and your bonds. But what else can provide the income you need in retirement? What is your retirement […]
Retirement Planning Guidebook: A Book Review A Text Book for Retirement Planning! Since I got into the business of retirement, I have complained that there is no text book on the topic of retirement planning. Nothing that puts all […]
Visualizing the 3-Fund Portfolio in Different Accounts Folks like the simplicity of a 3-fund portfolio. US and International equity funds, and a bond fund all wrapped up in a pre-determined asset allocation. When you have different account types with […]
Using Historical and Yearly Effective Tax Rate to Optimize Roth vs Traditional 401k Contributions Should you do Roth or Traditional contributions in your 401k early in your career? Let’s talk about Roth Optimization! Roth money is some of the […]
What Is Advice-Only Financial Planning? Financial literacy is not taught in our schools. Money is not mentioned around the dinner table. Yet, Wall Street obfuscates investing and “financial advisors” hide fees and commissions. The solution? Advice-Only Financial Planners. Dave Ramsey […]
RIP Retirement! RIP Retirement! We only knew you for a century! While retirement has evolved through the decades since its beginning about a century ago, there are some notable themes in those changes. When you take those themes and […]
