This week April 1, 2017 on Money For the Rest of Us Plus we profile three members who have questions on deciding an appropriate asset allocation given their life circumstances. To help them and other members with similar questions, we take a big picture look at risk, harm, asset allocation and timing. … [Read more...]
MNY150 Plus: Asset Allocation Example, Managed Futures and Bonds
This week March 25, 2017 on Money For the Rest of Us Plus we walk through the process of breaking down a portfolio to determine its asset allocation, expected return, risk and fees. We also discuss managed futures and the challenge of estimating the impact of a bond fund's duration on performance over multiple quarters. … [Read more...]
135 Plus: Investing Cash, Active Versus Passive, and SEC Yields
This week December 3, 2016 on Money For the Rest of Us Plus we look at why the model portfolios are a jumping off point to investing rather than a one size fits all solution. We discuss using actively managed funds to complement passive ETFs. We explore how SEC yields are calculated and how yield to maturity assumes reinvestment of interest/dividends. Finally, we look at where cash should be invested. Audio duration: 18:44 … [Read more...]
MNY127 Plus: TIPs, Individual Stocks and Investment Conditions
This week on Money For the Rest of Us Plus we start off by discussing a leading investment concern; what to do about rising asset class valuations driven by low interest rates. We also look at when inflation indexed bonds are attractive investments. Finally, we explore how to incorporate a portfolio of individual stocks into an asset allocation to determine an appropriate return. … [Read more...]
MNY106 Plus: National Debt, Solar Bonds, Permanent Portfolios, Emerging Markets and Dissecting A Portfolio
This week on Money For the Rest of Us Plus we cover a number of different topics. I address hyperinflation and the national debt. I also answer questions on emerging market stocks, solar bonds and international stock exposure when implementing a Permanent Portfolio. I also analyze a member's asset allocation in his retirement account to estimate the expected return and risk and compare it to one of the Hub's model portfolios. The episode length is 24 minutes. … [Read more...]
MNY097 Plus: Asset Allocation and Frontier Markets
This week on Money For the Rest of Us Plus I discuss smart beta in the context of adjusting portfolio allocations based on market conditions. I also provide a profile of frontier markets with an emphasis on Vietnam. The episode length is 13 minutes. … [Read more...]
MNY093 Plus: High Yield and Asset Class Return Assumptions
This week on Money For the Rest of Us Plus I review recent writings from two of my investment mentors Rob Arnott and Ben Inker. Specifically, we will discuss high yield bonds, the challenges with underperforming asset classes and reasonable asset class returns going forward. The episode length is 22 minutes. … [Read more...]
MNY092 Plus: Hedges and Timing An Asset Allocation Shift
This week on Money For the Rest of Us Plus I answer a member's questions regarding using bonds as a hedge against a market downturn. I also answer a member question regarding the timing of a shift to a new long-term asset allocation. The episode length is 16 minutes. … [Read more...]
MNY090 Plus: Asset Allocation In A Low Return World
This week on Money For the Rest of Us Plus I address some asset allocation issues raised in recent forum posts. In particular, I address why low real expected returns require investors to both save more and take on additional portfolio risk, which means having the patience to suffer through bad times like we experienced this past week in the stock market. The episode length is 16 minutes. … [Read more...]
MNY089 Plus: Smart Beta and Asset Allocation Assumptions
This week on Money For the Rest of Us Plus I discuss whether smart beta is the same as active management. I also share why rebalancing is an active investment strategy. Finally, I review a recent paper by Jack Bogle with evidence supporting the validity of the asset allocation assumption methodologies on the Hub. The episode length is 19 minutes. … [Read more...]