I received many responses from my last post about how Delta Pilots’ new Defined Contribution (DC) plan stacks up against the old Defined Benefit (DB) plan. First, I would like to thank each of you who responded. I appreciate that you took the...
Read moreFun with Numbers: How Does Delta’s New Pension Plan Stack Up Against the Old One?
With contract openers being exchanged in the near future, everyone seems to be talking about what we Delta pilots should be getting in our next contract. Everyone has their areas they would like to see improved. Pay, scope and retirement seem to...
Read moreIs It Time To Give Up On The Global Portfolio?
This chart says it all for some...
Read moreAn Introduction To Risk Parity Portfolios
If you are a regular reader of my newsletter you know that I try to build portfolios that gain exposure to sources other than traditional stock and bond returns. If fact, I believe that most people’s portfolios are dominated by one single source...
Read moreNew IRS Rule Makes After Tax 401K Contributions a Better Deal
Last week the IRS issued IRS Notice 2014-54. After years of fighting taxpayers about certain types of IRA rollovers they finally gave in. Today we will discuss what led to this rule change and how it might affect your retirement savings.
Read moreAre Market Valuations Valuable?
There is a lot of talk lately about whether or not the stock market is overvalued, undervalued or fairly valued. There are many different methods for determining whether a stock (or the whole market) is fairly priced based on some fundamental...
Read moreShould You Consider Structured Products?
Everyone likes the potential returns of stock. I mean who wouldn’t like the chance to gain 10% per year or more. The downside, on the other hand, could mean large losses. If there was only a way to gain the upside potential of stocks without...
Read moreThe Fallacy of Time Diversification: Part 2
In my last post I made the argument that time does not necessarily reduce the risk of an investment since the standard deviation of total return actually increases with time. I discussed how you have to take into account the direction and...
Read moreThe Fallacy Of Time Diversification: Part 1
If you read my blog regularly you know I am constantly preaching about diversification. Normally I am talking about incorporating multiple asset classes and style premiums together in order to increase return while reducing volatility. Many...
Read moreDon’t Confuse Strategy With Outcome
Last year was a great year for US stocks. In fact the Russell 3000 index returned 33.55%. This bested most other indices. For example the MSCI EAFE Index (Europe/Asia/Far East) returned 22.78%, the MSCI Emerging Market Index returned -2.6%, the...
Read moreIs This Mutual Fund A Game Changer? Part 2
In last week’s post I talked about a new fund – QSPIX from AQR. It is a long/short fund that seeks to capture four style premiums across multiple asset classes and countries. Since the return of this fund is derived from sources different from...
Read moreIs This New Mutual Fund A Game Changer? Part 1
I spend a lot of my time reading new research papers and evaluating new investment products. 99% of new investment products fail to meet my high bar as something I will put my client’s money in. My due diligence process is very thorough. It...
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