tag:blogger.com,1999:blog-6167053228142922997.post6873122041131889999..comments2023-10-30T11:57:40.433-04:00Comments on Wade Pfau's Retirement Researcher Blog: Paula Hogan’s “Financial Planning: A Look from the Outside In”Anonymoushttp://www.blogger.com/profile/04168922717655562721noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-6167053228142922997.post-40362486866958746412013-09-30T03:09:39.604-04:002013-09-30T03:09:39.604-04:00It's really a nice and helpful piece of inform...It's really a nice and helpful piece of information. I am glad that you just shared this helpful information with us. Please keep us informed like this. Thanks for sharing.<br /><a href="http://stevenconville.ca/" rel="nofollow">Steven Conville</a>Anonymoushttps://www.blogger.com/profile/02201237836187095928noreply@blogger.comtag:blogger.com,1999:blog-6167053228142922997.post-47457424160344272122013-09-25T23:10:48.133-04:002013-09-25T23:10:48.133-04:00The resource that you mentioned here is something ...The resource that you mentioned here is something that I have been looking from quite a time. And finally it ended with such a nice blog post. Don’t have words to thank you.<br /><br /><br /><a href="http://ncsu.financialplannerprogram.com" rel="nofollow">certified financial planner course</a>Dermaskinhttps://www.blogger.com/profile/16689767074735570051noreply@blogger.comtag:blogger.com,1999:blog-6167053228142922997.post-57798156691951323312012-07-18T02:57:59.622-04:002012-07-18T02:57:59.622-04:00Mitchell, thanks for sharing. I'm always glad ...Mitchell, thanks for sharing. I'm always glad to hear from planners who are actively searching for better solutions. What you are doing sounds quite worthwhile and worthy of investigation. I'm still mostly at the level of working with the standard indices, but there are other approaches as you describe. Thanks again.Anonymoushttps://www.blogger.com/profile/04168922717655562721noreply@blogger.comtag:blogger.com,1999:blog-6167053228142922997.post-49372969328477807662012-07-16T17:50:39.443-04:002012-07-16T17:50:39.443-04:00'Should these folks use what they have to buy ...'Should these folks use what they have to buy an inflation-adjusted immediate annuity, or should they take their chances with a diversified portfolio? There is no generalized agreement on the answer to this question.'<br />Wade<br />In my work with Manish Malhorta of IncomeDiscovery.com, we have looked at this issue as well. I built a high yielding portfolio of 13 stocks, mutual funds and an ETF. This portfolio is well diversified and includes domestic and international stocks as well as a HY bond position. The dividends are largely inflation adjusting and represent roughly a 5.2% to 6% dividend stream, currently. Measured against the R3000 index, the portfolio carries a three year .46 beta.<br />I believe that one can provide inflation protection, a high level of income and lower risk to the market without necessarily resorting to the typical allocations that might reflect this desire, while at the same time providing a great deal of flexiblity in managing ongoing risk, a la the 3 STD events we all fear. The flexibility of a high dividend low beta portfolio allows for income distribution without triggering share selling in the portfolio to generate this income. It allows for a welcome cash cushion in down markets and it can be opportunisitically invested when market conditions permit.<br />I think that by looking outside the box of the typical allocations that would be considered in constructing a porfolio based on lifecycle planning, one can provide income funding that would be reflective of the various stages that clients pass through in life. We can do this without losing flexibilty through the use of annuities or TIPS, although clearly these products can enhance the planning options when combined with a high yielding stock portfolio.Mitchell Keilhttp://www.integrityfa.comnoreply@blogger.comtag:blogger.com,1999:blog-6167053228142922997.post-34734562208080084892012-07-12T08:21:37.130-04:002012-07-12T08:21:37.130-04:00Nice Blog. Thank you for sharing and I want to sha...Nice Blog. Thank you for sharing and I want to share information about the Cash Flow Navigator. Cash Flow Navigator is a Financial Planning Advisor. It provides free information and resources for their members to plan and achieve Financial Independence.Cash Flowhttp://www.cashflownavigator.comnoreply@blogger.comtag:blogger.com,1999:blog-6167053228142922997.post-76244677443830449212012-07-12T06:17:47.945-04:002012-07-12T06:17:47.945-04:00Good Information. Thank you for sharing and I want...Good Information. Thank you for sharing and I want to share information about Gerstein Fisher which is an independent investment advisory firm that manages assets on behalf of individuals and families and helps clients with their financial goals.Davishttp://www.gersteinfisher.com/noreply@blogger.comtag:blogger.com,1999:blog-6167053228142922997.post-34185628847136653872012-07-04T01:01:35.029-04:002012-07-04T01:01:35.029-04:00Thanks for the comments.
Franco Modigliani, Frank...Thanks for the comments.<br /><br />Franco Modigliani, Frank Ramsey, Irving Fisher, & Milton Friedman all deserve lots of credit too!<br /><br />I understand your points about financial derivatives. That is probably the big stumbling block. Transparency and cost is so important, but the more complicated the product, the easier it becomes to hide various fees.Anonymoushttps://www.blogger.com/profile/04168922717655562721noreply@blogger.comtag:blogger.com,1999:blog-6167053228142922997.post-62909827736426159282012-07-03T12:46:06.698-04:002012-07-03T12:46:06.698-04:00I completely agree with the CanadianInvestor. I a...I completely agree with the CanadianInvestor. I actually emailed Hogan directly about this a few months ago but never heard back. Even worse is that Bodie, in "Worry Free Investing" specifically recommends some structured products by name. That book was written in 2003. But when I read the book recently and googled those products the first several hits were about class action lawsuits against the issuer. Oops.<br /><br />My basic takeaway about life-cycle investing is that it's good in theory but (currently) bad in practice.<br /><br />I'd like to see someone trustworthy like Vanguard start issuing market-linked cds, structured products, etc. These products all sound very simple to make. I'm really surprised that no one seems to be attempting to dominate the retail market for them by focusing on transparency and cost.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6167053228142922997.post-89474441070087356782012-07-03T08:37:44.467-04:002012-07-03T08:37:44.467-04:00Re the cusp of a new era of financial derivatives,...Re the cusp of a new era of financial derivatives, it seems rather that we are entering an era of disillusion with the financial industry, in which no one will want to buy products from a tainted industry, especially when those products are derivatives, which most ordinary folks (and probably most advisors)will not understand and be able to assess on their own. Until the financial industry undergoes a radical shift into a more ethical culture, I would hardly start advising my friends and family to buy into derivative products (the old advice, if you don't understand it, don't buy it, would apply). What value there might be in derivative-based products is negated by the high likelihood that people will be taken advantage of.CanadianInvestorhttps://www.blogger.com/profile/05645767559302303541noreply@blogger.comtag:blogger.com,1999:blog-6167053228142922997.post-42005553363122740772012-07-03T08:18:08.392-04:002012-07-03T08:18:08.392-04:00When discussing life-cycle saving and investing, l...When discussing life-cycle saving and investing, let's not neglect the contributions of Franco Modigliani. :-)Anonymousnoreply@blogger.com