Alpha Architect

DECEMBER 29, 2023

Many risks important for our portfolios are new, hidden, or nuanced in some underappreciated way—and likely to be misunderstood and mispriced in the markets. Other risks can hide in plain sight. In short: we need informed creativity, not calculation. Please read the Alpha Architect disclosures at your convenience.

Math 72

Math Risk Management Portfolio Management 72

The Big Picture

NOVEMBER 27, 2023

24, 2023 _ 1: In particular, why average outperforms over the long run; Sommers credits not making errors (via Charlie Ellis’ “Winning the Loser’s Game”) but the nuance and math are fascinating. I have dozens of examples of traders who made the right call for some of the above for all the wrong reasons. By Jeff Sommer New York Times, Nov.

Marketing 290

Marketing Marketing Math Retirement Planning 290

The Big Picture

JUNE 24, 2023

His philanthropy includes sitting on the board of directors of Paul Tudor Jones’ Robin Hood Foundation and Jim Simon’s Math for America. That setup plus the mistaken belief that Portfolio Insurance would offer protection from losses, was the perfect up parallel.

Investing 209

Investing Investments Recruitment Math 209

Abnormal Returns

SEPTEMBER 17, 2022

barrons.com) Bond math looks a lot different from a year ago, let alone six months. morningstar.com) Just how bad is the drawdown in the 60/40 portfolio this year? Markets T-bill yields are approaching 4%. priceactionlab.com) Apple A look at the new iPhone 14s. daringfireball.net) The Apple ($AAPL) Series 8 Watch is all about health.

Math 130

Math Financial Advising Advertising Media 130

The Big Picture

DECEMBER 12, 2022

Yet the fundamental math of bond returns bodes well for 2023, our columnist says. ( Blackstone is the world’s largest owner of commercial real estate globally with a $565 billion portfolio and $319 billion in investor capital. The bond market certainly DID NOT see the pandemic-induced inflation coming. ( New York Times ). •

Math 290

Math Economy Communication Economics 290

Advisor Perspectives

NOVEMBER 1, 2023

This means that if you own fixed income in your portfolio, there is a good chance that you are seeing unrealized losses on your monthly statements (fixed income math = yields higher, prices lower). Yields are at some of their highest levels in over a decade.

Math 52

Math Portfolio 52

Getting Your Financial Ducks In A Row

OCTOBER 31, 2022

These studies show that, given a choice between an annuity with a monthly income and an investment portfolio structured to provide the same sort of returns over time, if we’re near retirement we choose the annuity seven times out of ten. There’s no shame in admitting that factor – for a lot of us, math can be very tough.

Math 113

Math Investing Investments Retirement 113

Random Roger's Retirement Planning

NOVEMBER 6, 2023

It's been a while since this sort of thing was relevant for my day job so something could have changed, weeklies didn't exist for example, but if my math is correct then it was way over exposed which would account for last week's decline in the fund price. Please leave a comment if I did the work incorrectly.

Math 92

Math Education Management Taxes 92

Random Roger's Retirement Planning

APRIL 22, 2024

This blog has pretty much evolved into 100 ways to build a portfolio without bonds. The article devoted a good amount of space to bond market math, focusing on the pain of owning the iShares 20+ Year Treasury ETF (TLT) and bond funds in general. If the Fed itself can’t forecast rates, why would your financial advisers think they can?"

Marketing 75

Marketing Marketing Financial Advising Math 75

The Big Picture

MAY 15, 2023

My back-to-work morning train WFH reads: • Ken Griffin’s Hand-Picked Math Prodigy Runs Market-Making Empire : Citadel Securities CEO Peng Zhao left for college at age 14, caught Griffin’s eye early in his career and built systems now mopping up market share. TKer ) • The Debt Ceiling Dispute Raises the Risks for ‘Risk-Free’ U.S.

Math 140

Math Insurance Portfolio Management 140

Random Roger's Retirement Planning

JUNE 22, 2023

And then just a little math, the "guarantee" based on the 50/50 allocation would be 2.5% Portfolio 3 with 65% HEQT and 35% SPHB was down quite a bit less than the S&P 500 last year and the standard deviation is noticeably lower too. Keep it to something broad like a total market fund or a market cap weighted large cap index.

Math 59

Math Portfolio Investing Investments 59

Random Roger's Retirement Planning

FEBRUARY 29, 2024

I've been saying meaningful yield without too much volatility is what investors hope the bond portion of their portfolio will give. The simple 40 year trade for bonds of "number go up" is finished and as a matter of math, can't be repeated. Taking volatility out of a fixed income portfolio is fairly simple.

Marketing 72

Marketing Marketing Math Portfolio 72

Integrity Financial Planning

JULY 6, 2022

Make sure your income is coming from a secure source, not the best performing portfolio. Look at the math to understand and believe it. It’s important to have the right strategy in place when it comes to taking out your retirement income.

Retirement 95

Retirement Retirement Planning Math Financial Planning 95

Random Roger's Retirement Planning

FEBRUARY 6, 2024

I don't see the diversification benefit which as an ongoing theme forces us to think differently about how to build a 60/40 portfolio. It is important to understand the math though. No portfolio concept can always be best. Any valid idea you come up with for your portfolio will lag at times. That's a year to date chart.

Portfolio 61

Portfolio Math Management Investing 61

The Big Picture

AUGUST 29, 2023

My Two-for-Tuesday morning train WFH reads: • Stock Pickers Never Had a Chance Against Hard Math of the Market : In years like this one, when just a few big companies outperform, it’s hard to assemble a winning portfolio. Businessweek ) but see With cash earning 5%, why risk money on the stock market?

Insurance 130

Insurance Math Economics Economy 130

Random Roger's Retirement Planning

JULY 8, 2023

Barron's had a fun article that looked at some ideas from William Bernstein titled The Trick To A Bullet Proof Portfolio? Based on the title, it would seem to be in the neighborhood of creating an all-weather portfolio which we've looked at in several different forms over the course of my full 19 years of blogging.

Asset Allocation 60

Asset Allocation Math Portfolio Assets 60

Random Roger's Retirement Planning

APRIL 12, 2023

The Wall Street Journal had an article about the standard 60/40 portfolio , that is 60% allocated to stocks and 40% allocated to fixed income. My experience is that the typical retired person/couple expects growth in exchange for some volatility from the equity portion of their portfolio, they don't want it from their fixed income sleeve.

Portfolio 66

Portfolio Math Clients Retirement 66

Random Roger's Retirement Planning

FEBRUARY 24, 2024

That is correct, technically but whatever you're looking for from REITs, or private equity or any of the others, you're not going to see it impact the portfolio as part of an index fund. Mistakes during those types of events are what managing portfolios is all about.

Math 70

Math Portfolio Marketing Marketing 70

Trade Brains

DECEMBER 7, 2023

The course covers an introduction to personal finance, credit cards, life insurance, health insurance, investment instruments, loans, income tax and planning, budgeting and building a strong portfolio. Also, you will learn how to plan your taxes, credit score importance and how to budget your income to create a portfolio.

Budgeting 59

Budgeting Certification Education Asset Allocation 59

Random Roger's Retirement Planning

AUGUST 17, 2023

The title tells you the author's conclusion, Why Your Portfolio Should Hold Way More Than 30 Stocks. In my opinion the diversification benefit hits diminishing returns pretty close to 40 individual holdings based on math if nothing else. If a portfolio starts with 40 holdings each with an equal 2.5% Not too many I'd say.

Numbers 60

Numbers Portfolio Math Portfolio Management 60

Random Roger's Retirement Planning

FEBRUARY 1, 2024

Anything related to the Permanent Portfolio (portfolio devised by Harry Browne weighting 25% each to stocks, long bonds, cash and gold) or any of the Permanent Portfolio-inspired modern investment products are always fun to look at. I wanted to circle back to the ProShares S&P 500 High Income ETF (ISPY).

Portfolio 40

Portfolio Math Assets Taxes 40

Integrity Financial Planning

JANUARY 23, 2023

You might have a generic 60/40 portfolio that you expected to cover the rest of your income needs but that possibly needs updating after recent market activity. 3] So, it’s easy math: the less you work, the less you’ll earn. Regardless, Social Security can provide a helping hand with your income.

Retirement 89

Retirement Math Retirement Planning Financial Planning 89

Random Roger's Retirement Planning

DECEMBER 10, 2023

A little more specifically the need for diversified portfolios persists with the implication that bonds are the way to get this done. This chart contributes to the logic supporting a 60/40 portfolio. As a matter of math, it cannot repeat the run from 8.5% Portfolio 2 above has 65% in growth. in November.

Portfolio 57

Portfolio Math Assets Retirement 57

Random Roger's Retirement Planning

MARCH 20, 2023

The way the math works, a 67% allocation to NTSX (Portfolio 2 with 33% in the T-bill ETF) equals 100% in Vanguard Balanced Index Fund (VBAIX) which is a proxy for 60/40 and Portfolio 3. Portfolio 1 is 100% in NTSX which in 2022 was down 25.84% versus down 16.85% for Portfolio 2 and 16.87% for Portfolio 3.

Assets 57

Assets Portfolio Math Management 57

Random Roger's Retirement Planning

DECEMBER 17, 2023

Simple math is that this person needs to save $23/yr to come up with that additional $350,000. But simple math tells you that adding $5000/yr likely won't cut it. Where we talk about return stacking in portfolio construction, think of this as work stacking. 5000 per for 15 years is $75,000.

Retirement 68

Retirement Math Insurance Taxes 68

Random Roger's Retirement Planning

JULY 27, 2022

In my ongoing quest to redefine portfolio construction, I've mentioned labeling asset classes based on their attributes versus just their proper names like growth which could include more than just equities or inflation protected which could include more than just TIPS and so on. We talk frequently about portfolios being relatively simple.

Portfolio 73

Portfolio Clients Assets Math 73

Clever Girl Finance

OCTOBER 20, 2022

Figuring out how to calculate liquid net worth is as simple as doing a quick math equation: Liquid assets - liabilities = liquid net worth. Don't worry—there is an answer to the question, "What is my liquid net worth" that doesn't involve solving math equations. Make investments like buying more stocks for your investment portfolio.

Assets 59

Assets Accounting Math Portfolio 59

The Big Picture

SEPTEMBER 19, 2023

Her job is portfolio and product solutions and that means she could go anywhere in the world and do anything. One, one is true and I’ve always said is that I wanted people to stop, ask if I could doing math. And no one asked me if I can do math anymore with a degree from Booth, particularly in econometrics and statistics.

Assets 140

Assets Management Portfolio Investing 140

The Big Picture

FEBRUARY 6, 2024

If you’re at all interested in focused portfolios, the concept of quality as a sub-sector under value and just how you build a portfolio and a track record, that’s tough to beat. Dick Mayo was a traditional, I’d say portfolio, strong portfolio manager focused on US stocks. So I was at Harvard.

Valuation 130

Valuation Investing Investments Assets 130

Random Roger's Retirement Planning

FEBRUARY 8, 2023

Here are some other numbers compared to the S&P 500 and VBAIX which is a proxy for a 60/40 portfolio. The way the math works, a 67% allocation to NTSX replicates 100% into a 60/40 portfolio which leaves 33% left over to do something. In 2022, VBAIX was down 16.87% while Portfolio 2 was only down 10.77%.

Portfolio 40

Portfolio Math Management Investing 40

Steve Sanduski

AUGUST 4, 2022

I’ll go straight to the punch line —> The average RIA firm had negative revenue growth over the past five years if you exclude market movement using a traditional 60/40 market portfolio as a proxy for RIA investment allocations. With a traditional 60/40 allocation, this portfolio would have grown about 75.5%

Math 52

Math Portfolio Numbers Distribution 52

Investing Caffeine

FEBRUARY 1, 2022

Math Matters. I did okay in school and was educated on many different topics, including the basic principle that math matters. With that said, I am always quick to point out that diversification in a portfolio is important (i.e., Source: Calafia Beach Pundit. Source: Edward Yardeni.

Math 52

Math Assets Investing Investments 52

Random Roger's Retirement Planning

JULY 15, 2022

As a quick reminder, a 67% allocation to 90/60 generally equates to a 100% allocation to a 60/40 portfolio like you might get from Vanguard Balanced Index Fund (VBAIX). For this post I assembled a less dramatic portfolio more in line with Krom's thinking. The math shows the NTSX/ARBIX/BTAL combo would be down 14.7%

Portfolio 46

Portfolio Math Numbers Marketing 46

Random Roger's Retirement Planning

OCTOBER 29, 2023

Here I am talking not just portfolio management but overall lifestyle, habits and choices and yes this does filter into my day job managing investment portfolios. In the spring I had a very casual conversation with another advisor who was kicking the tires about having me sub advise his client accounts (I would manage the portfolios).

Insurance 75

Insurance Clients Math Portfolio 75

Brown Advisory

JANUARY 17, 2024

One of our colleagues, Ken Stuzin, likens portfolio construction to Darwinian Investing – it is about survival of the fittest. In a concentrated portfolio, it is the losers that kill you. What sort of hit rate should we then expect within their portfolio? 5 As Table 2 below highlights, this team appears to be seriously good!

Investing 52

Investing Investments Portfolio Compliance 52

Carson Wealth

MARCH 2, 2023

When a portfolio is down significantly, you’ll need to cash out more shares to arrive at the same amount of income, and it can be tough to recover from the loss of those assets. Cleaning up your balance sheet and erasing high-interest debt is essential to avoid putting excess strain on your portfolio. Contact us today.

Retirement 98

Retirement Taxes Financial Advisor Accounting 98

David Nelson

NOVEMBER 27, 2023

Do the math S&P 500 Top Performers Bloomberg Data 25% of the S&P 500 is up more than the index this year. Constructing a portfolio that keeps you in the game is better than not playing the game at all. There are always exceptions and of course some did outperform. 60% of the index is positive year to date.

Investing 52

Investing Investments Math Management 52