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...]
MNY084 Plus: Timing For Shifting From Stocks To Bonds
This week on Money For the Rest of Us Plus I answer a Hub member's question about asset allocation. He wants to reduce his allocation to stocks in favor of bonds but is unsure whether he should do it all at once or average into bonds over time. I also answer a question about starting a business. Finally, I provide an update on my peer-to-peer lending activities and one strategy on Lending Club that doesn't work. The episode length is 17 minutes. … [Read more...]
MNY082 Plus: Adding Asset Classes and Dealing With Underperformers
This week's Money For the Rest of Us Plus episode discusses how to use some of the tools on the Hub to adjust your portfolio allocation. We also discuss how to handle underperforming asset classes, and look at some updated valuation data for MLPs. The episode length is 21 minutes. … [Read more...]
How Dividends and Their Growth Rate Equal Total Return
This video goes through an example of how combining an investment's dividend yield with its dividend growth rate is a good estimate of an investment's total return. This is the approach used in developing expected returns for real estate investment trusts and master limited partnerships. … [Read more...]
80: Investing Means Getting Lost
Don't be overwhelmed or play it too safe when it comes to investing and living. In this episode you'll learn: Why having too many choices is overwhelming.Why being overly safe in your investing might actually be losing you money.How to keep investing from being overwhelming.Why we need to have doubt and uncertainty to prevent overconfidence.Why we sometimes need help with our investing. Show Notes Why Too Much Choice Is Stressing Us Out - The Guardian The … [Read more...]
MNY075 Plus: Asset Allocation Challenges
This week's Money For the Rest of Us Plus episode discusses some of the challenges in coming up with reasonable asset allocation assumptions. The episode length is 15 minutes. … [Read more...]
75: We Have To Invest Somewhere
The biggest challenge facing Money For the Rest of Us listeners is how to allocate their assets in order to be able to retire. In this episode, I discuss how I am going to help you overcome that challenge. Photo by J.D. Stein In this episode you'll learn: How diversification can be misused.The big asset allocation mistake I made with a former university client.The current environment for non-investment grade bonds.Content I will be providing to help you with asset … [Read more...]
34: Investing Rules of Thumb
Why simple investment rules are more accurate than complex formulas. Photo by Chris Perello In this episode, you'll learn: What determines where a hit baseball will land and how we use the gaze heuristic to catch it.Under what conditions are rules of thumb more accurate than manual calculations.How Harry Markowitz, Nobel Prize winner for his work on Modern Portfolio Theory, used a rule of thumb to determine the asset allocation for his retirement portfolio.Why dividing … [Read more...]
21: Investing Without A Map
I share my own portfolio and investment philosophy as an example of investing without a map. Plus, why I don't use peer-to-peer lending platforms such as Lending Club and Prosper. Photo by Brian Moore In this podcast, you'll learn: What my asset allocation looks like over time.Why I hold so much in cash.What it means to wait for a fat pitch in investing.Examples of mistakes I have made investing.How changing your asset allocation over time is different from trying to time the … [Read more...]
