Why portfolio construction is messy, personal, and never perfect. We compare the pros and cons of several portfolio strategies, including target-date funds, risk parity, and role-based portfolios. We conclude with three AI-related fallacies that will help us better navigate the current moment. Show Notes Why Everything Suddenly Is ‘Perfect’ by Paula Marantz Cohen—The Wall Street Journal Your Perfect Portfolio by Cullen Roche—Pan MacMillan My Core Investment Values by Peter … [Read more...]
552: AI Is Changing Me – and the Case for Good Enough
When is good enough actually good enough? AI is reshaping how I work and live. And a member with a portfolio that's beaten an all-in-one Vanguard LifeStrategy fund for ten years asks whether the complexity is worth it — or whether it's time to simplify. Show Notes The Upswing: How We Came Together a Century Ago and How We Can Do It Again by Robert Putnam—Simon &Schuster An update on our model deprecation commitments for Claude Opus 3—Anthropic Claude's … [Read more...]
419: How to Make Portfolio and Asset Allocation Changes
We consider four case studies in which individuals struggle to decide what to do with their investment portfolios. Topics covered include: Why it's so difficult to reenter the stock market after sitting on the sidelines and what to do instead What are the risks of having a too aggressive portfolio allocation in retirement and what to do instead What to do when an investment strategy has worked really well but you feel it is time to make a change How to decide on an … [Read more...]
201: Is Your Portfolio Unbalanced?
Why most conventional portfolios make huge and often unintended bets on the stock market. How role-based investing can lead to a more balanced portfolio. Photo by Mangrove Mike In this episode you’ll learn: Why asset class returns and volatility are driven by changing expectations.How most investors are making a huge bet in stocks even though they might not be aware of it.The benefit and challenges of holding assets that perform well during various economic regimes.Why … [Read more...]
154 Plus: How Your Profession Impacts Your Investment Strategy
This week April 20, 2017 on Money For the Rest of Us Plus we look at how investors should factor in their employment in terms of their overall asset allocation, such as the variability of their income and the industry in which they work. We look at a new study by Vanguard on dollar cost averaging versus investing lump sums. We explore the implications of the phrase, "the market went up because the money had no where else to go." Finally, we consider how investment bubbles can contribute … [Read more...]
MNY129 Plus: Becoming A Millionaire and Stock Valuations versus Interest Rates
This week on Money For the Rest of Us Plus look at how to construct a portfolio and how much needs to be saved in order to become a millionaire. We also look at the relationship between stock valuations and interest rates. Finally, we learn about warrants. … [Read more...]
MNY109 Plus: Portfolio Construction and Advisory Fees
This week on Money For the Rest of Us Plus we discuss how advisory fees can be a significant drag on performance returns. We also look at which asset classes do better during episodes of inflation and deflation. Finally, we review a new academic article by Cullen Roche on portfolio construction. The episode length is 24 minutes. … [Read more...]
MNY102 Plus: Taxes, Asset Allocation and Analysis Paralysis
This week on Money For the Rest of Us Plus I answer three asset allocation and portfolio questions from members. One involves investing in taxable accounts, one involves moving back into the market and the other on transitioning a complex portfolio to a simpler structure. The episode length is 20 minutes. … [Read more...]
