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...]

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...]

What you need to know about asset allocation, including the flaws in modern portfolio theory. Photo by Victor Sa In this podcast, you'll learn: What is modern portfolio theory and why I don't believe in it.How does modern portfolio theory work.What is standard deviation and correlation.What is an efficient frontier.What Shakespeare taught about asset allocation.What assumptions make modern portfolio theory an inaccurate map.Why we should focus on exposure to extreme events instead … [Read more...]