This week March 10, 2018 on Money For the Rest of Us Plus, we analyze a member's financial situation and investment portfolio to see if they are able to retire even though they are in their mid forties. As part of the analysis, we look at why increasing stock exposure actually increases the probability of retirement ruin. … [Read more...]
189 Plus: Emerging Markets, Commodities, Bond Bear Market and A Member Portfolio Review
This week January 27, 2018 on Money For the Rest of Us Plus, we analyze the historical and expected returns of emerging markets equity compared to U.S. stocks, and how changes in valuations have influenced their respective returns. We look at investing in commodities futures and why they are not in the model portfolios. We discuss "bond bear markets" and what has or will be done to the model portfolios in the face of rising interest rates. Finally, we review a member's portfolio to … [Read more...]
177 Plus: Asset Allocation, Expected Returns and Concentration Risk
This week October 20, 2017 on Money For the Rest of Us Plus, we look at whether an aggressive 90% equity allocation can be expected to outperform a more diversified conservative allocation over a decades long holding period. We explore whether one should have higher expected returns over a 30 year time horizon under the assumption that 10 year expected returns are lower due to higher valuations and that once valuations normalize, expected returns should be higher. We look at asset … [Read more...]
164 Plus: An Egregious Violation of the Fiduciary Standard
This week July 15, 2017 on Money For the Rest of Us Plus we look at an egregious example of a broker that sold a series of complex, illiquid investments to a 97 year old man, violating both a suitability test and the new fiduciary rule. We also look at a 25 year-old member's asset allocation and look at changes he might consider. … [Read more...]
163 Plus: Federal Reserve, Pension Crisis and Is There Enough To Retire
This week July 1, 2017 on Money For the Rest of Us Plus we learn how bank reserves at the U.S. Federal Reserve will be reduced as the central bank reduces its holdings of U.S Government bonds. We use the tools on Money For the Rest of Us Plus to analyze whether a member will have enough to retire. We explore the severity of pension fund crisis for U.S. states and municipalities as well as for U.S. businesses and the potential fallout from the crisis. Finally, we take a brief look at a … [Read more...]
162 Plus: Fixed Income Options, U.S. Fiscal Gap, and an Investment Advisor Portfolio Review
This week June 24, 2017, we compare bank certificate of deposits, savings accounts and short term bonds. We also review an asset allocation and portfolio review prepared by a wealth manager for a member. Finally, we look at why the U.S. fiscal gap and generational accounting is the wrong problem to worry about. … [Read more...]
159 Plus: A Few Stocks Usually Drive Benchmark Returns
This week May 27, 2017 on Money For the Rest of Us Plus we profile a recent study by Ned Davis Research that shows in most years a handful of stocks contribute to more than 50% of returns for market capitalization indices such as the S&P 500 Index and the NASDAQ 100. We also discuss a member's asset allocation for an inherited investment account. Finally, we discuss whether buying a home is an investment. … [Read more...]
