Calculated Risk

MARCH 27, 2024

However, in real terms, the National index (SA) is about 10% above the bubble peak (and historically there has been an upward slope to real house prices). The composite 20, in real terms, is 1% above the bubble peak. People usually graph nominal house prices, but it is also important to look at prices in real terms.

102

102

Nerd's Eye View

APRIL 10, 2024

Every document that considers the facts around any particular asset class will invariably include that disclaimer, but constructing a portfolio consisting of a mix of equities, fixed income, and other assets requires investors and advicers to make some fundamental assumptions around long-term expected returns and correlations between assets.

Asset Allocation 238

Asset Allocation Wealth Accumulation Assets Portfolio 238

Nerd's Eye View

FEBRUARY 16, 2024

Also in industry news this week: While AUM fees remain ubiquitous among fee-only advisors, recent data show that an increasing number leverage multiple fee models to meet different client needs and preferences While CFP Board has come out firmly in favor of the Department of Labor's proposed Retirement Security Rule, FPA has taken a more cautious approach, (..)

Financial Planner 221

Financial Planner Fee Only Compliance CFP 221

Abnormal Returns

FEBRUARY 8, 2024

wired.com) ETFs Bonds have lagged in terms of passive management, but are catching up. bloomberg.com) Used car prices are down 9.2% (investmentnews.com) What does the research say about private equity performance? morningstar.com) Companies Looking back at 20 years of Facebook. vox.com) How Slack changed business in 10 years.

Financial Advising 221

Financial Advising Marketing Marketing Media 221

Nerd's Eye View

JANUARY 2, 2024

We also talk about how Stevyn's first introduction to the financial advisor industry actually pushed her away from it, as she watched her father (and many of his colleagues) achieve the financial success that set them up well for retirement, but without maintaining their holistic health that would have allowed them to truly enjoy their 'golden years', (..)

Financial Advisor 211

Financial Advisor Retirement Financial Advice Consulting 211

The Big Picture

SEPTEMBER 21, 2022

He thinks about expectations, gives speeches on them, and uses the data series when enacting Federal Reserve policies to combat inflation. Their risk tolerance has not changed, but the short-term market environment has; this is of course irrelevant to their long-term investing needs. November 22, 2009). Black Friday #Fails.

Risk Tolerance 330

Risk Tolerance Budgeting Numbers Economics 330

The Big Picture

NOVEMBER 15, 2023

Some hacks will help you: – Use a Core & Satellite Approach : Think of your core portfolio as a Christmas tree and any non-core satellite investments as the ornaments you hang on that tree. Sure, whatever, why not… It really doesn’t matter what the satellite is so long as it forces you to leave your core alone long-term.2

Investing 343

Investing Investments Portfolio Economics 343

Nerd's Eye View

AUGUST 30, 2023

Non-compete agreements (where a company prohibits an employee from working for competitors, at least for a certain period of time) are often used to help companies protect their investment in the employee (e.g., a personal friend or relative/family member) to their new firm. Read More.

Clients 204

Clients Communication Financial Planning Planning 204

The Big Picture

AUGUST 1, 2023

It is useful to put drawdowns of 20 or 30% into proper context when they follow gains of 100% (SPX) and 200% (NDX). Yield Curve Inversion : Cam Harvey, the creator of this recession indicator, points out that it is 8 for 8 in terms of recession forecasts. Never use someone else’s narrative to justify your investment behavior.

Economics 246

Economics Valuation Marketing Marketing 246

Nerd's Eye View

JULY 5, 2023

In this guest post, Larry Swedroe, head of financial and economic research at Buckingham Strategic Wealth, discusses why many investors tend to fall prey to recency bias, and explains why global diversification – and keeping short- and long-term results in the right perspective – remains a prudent strategy. and global investments.

Valuation 236

Valuation Economics Portfolio Investing 236

Calculated Risk

FEBRUARY 1, 2024

However, in real terms, the National index (SA) is about 10% above the bubble peak (and historically there has been an upward slope to real house prices). The composite 20, in real terms, is 1% above the bubble peak. People usually graph nominal house prices, but it is also important to look at prices in real terms.

102

102

Nerd's Eye View

OCTOBER 9, 2023

Different strategies have different Client Acquisition Costs (CACs), in terms of both hard-dollar marketing expenses and the cost of the advisor's time spent on the strategy, and an efficient market strategy is one that can effectively attract new clients while minimizing the amount spent to acquire them.

Engineering 187

Engineering Financial Advisor Management Advertising 187

Nerd's Eye View

JANUARY 29, 2024

One possible way to do this is to use the time savings of technology to serve a higher number of clients. However, another approach advisors can take is to use their technology to do more – and better – work for the same number of clients while earning higher fees for the higher-value services they provide.

Clients 210

Clients Planning Numbers Financial Advisor 210

Abnormal Returns

JULY 30, 2023

alphaarchitect.com) How to properly use a DCF model. allstarcharts.com) Cullen Roche, "Insurance is designed to provide you with short-term certainty around an uncertain outlier event. (luxcapital.com) Eight ways compounding can get interrupted. ofdollarsanddata.com) Why people underperform their own investments.

Insurance 218

Insurance Retail Portfolio Investing 218

Nerd's Eye View

FEBRUARY 17, 2023

Further, an investment adviser who can make trades on behalf of a client would be deemed to have custody of the client’s assets, which could substantively shift a very sizable portion of the wealth management RIA community under the custody rule, though it remains to be seen whether or what exact custody rule compliance requirements would be (..)

Financial Planner 198

Financial Planner Fiduciary Duty Retirement Planning Compliance 198

oXYGen Financial

JULY 6, 2022

This way, you know you are getting the best terms and conditions for your individual situation. [CDATA[ There are a few key instances in which taking out a personal loan may be a good idea. If you are in the market, you will want to compare personal loans before agreeing to anything. Personal loans can be an extremely helpful tool.

Marketing 40

Marketing Marketing 40

Abnormal Returns

NOVEMBER 7, 2023

allstarcharts.com) Investors love ultra-short term bond ETFs. bloomberg.com) Companies Private equity is getting into the short-term rental market. awealthofcommonsense.com) Wholesale used car prices fell in October. Markets New lows peaked awhile ago. ft.com) Some cattiness in the private credit business.

Economy 147

Economy Financial Advising Food Media 147

The Big Picture

MAY 21, 2023

We have a lot less to go around with, in terms of fighting poverty. dementia now carved into her short-term memory: A recent neurological assessment had found the 82-year-old was unable to say what year it was or name the city she was in. How is poverty different in America than in its peer countries?

Insurance 290

Insurance Healthcare Nonprofit Ethics 290

Abnormal Returns

OCTOBER 24, 2023

sciencedirect.com) How AI can be used to identify information in conference calls. fwpwealth.com) Research Research shows the classic short-term reversal effect has steadily weakened over time. Corporate finance Why aren't corporate bankruptcies higher already? mailchi.mp) Benchmarks How to identify the best fund benchmark.

Economics 186

Economics Assets Marketing Marketing 186

The Big Picture

MAY 17, 2023

Beyond short-term extrapolation, they have little to no ability to provide insight into intermediate-term (6-12 months) inflation. As to longer-term, 5-year inflation expectations, they are ridonkulously, hilariously wrong.

323

323

Nerd's Eye View

DECEMBER 8, 2023

Enjoy the current installment of "Weekend Reading For Financial Planners" - this week's edition kicks off with the news that a new study from research firm Cerulli has found that investors' willingness to pay for financial advice has risen over the last 15 years, with more investors reporting using a financial advisor (and a decreasing share considering (..)

Financial Planner 196

Financial Planner Numbers Clients Wealth Management 196

Calculated Risk

DECEMBER 1, 2023

However, in real terms, the National index (SA) is about 10% above the bubble peak (and historically there has been an upward slope to real house prices). The composite 20, in real terms, is at the bubble peak. People usually graph nominal house prices, but it is also important to look at prices in real terms.

110

110

Nerd's Eye View

JANUARY 19, 2024

Also in industry news this week: While the total number of RIA M&A deals in 2023 fell short of a record-setting 2022 amidst an elevated interest rate environment, continued interest from private equity firms and creative deal structures could boost deal flow in 2024 While the SEC authorized 11 "Spot" Bitcoin ETFs last week, comments from chair (..)

Financial Planner 225

Financial Planner Fiduciary Duty Retirement Retirement Planning 225

Nerd's Eye View

JANUARY 1, 2024

This month's edition kicks off with the news that held-away asset management platform Pontera has raised $60 million in venture capital funding as advisors increasingly seek to directly manage clients' 401(k) and other outside assets – although an ongoing investigation by Washington state regulators over whether advisors' use of Pontera violates (..)

Retirement Planning 212

Retirement Planning Compliance Startup Clients 212

Nerd's Eye View

JANUARY 4, 2023

And when it comes to retirement planning, one popular technique is the use of ‘guardrails’, which set an initial monthly withdrawal rate that can be later adjusted as the size of the client’s portfolio changes. Financial advisors have a wide range of strategies at their disposal to create financial plans for their clients.

Retirement 235

Retirement Distribution Retirement Planning Asset Allocation 235

Abnormal Returns

APRIL 13, 2024

theconversation.com) The number of solar power sites using sheep to graze the grass are on the rise. arstechnica.com) How drones could be used to keep wolves away from cattle. semafor.com) Drugs Good news on the teen drug use front. newatlas.com) Chili crunch Should you be able to trademark the term 'chili crunch'?

Media 192

Media Financial Advising Food Education 192

Nerd's Eye View

DECEMBER 25, 2023

We start with several articles on retirement planning: Data showing where American retirees currently stand, from their average net worth to how they spend each hour of the day How, according to a recent study, delaying Social Security benefits typically leads to greater lifetime wealth than claiming benefits early in order to reduce portfolio withdrawals (..)

Financial Advisor 213

Financial Advisor Financial Planner Insurance Clients 213

Nerd's Eye View

FEBRUARY 28, 2024

Alternatively, advisers can introduce reflection questions using the phrase, "it seems" as a way to rephrase and summarize something a prospect said in order to elicit additional thoughts. The "it seems" framework is particularly useful when prospects need help prioritizing multiple goals. Read More.

Planning 223

Planning Financial Advice Financial Planning Clients 223

Nerd's Eye View

SEPTEMBER 8, 2023

Also in industry news this week: Changes to CFP Board’s procedural rules went into effect September 1 and are intended to make the disciplinary process more efficient for respondents as well as CFP Board staff, and to expand the CFP Board’s ability to pursue more complaints against CFP professionals A NASAA model rule follows in the footsteps (..)

Financial Planner 222

Financial Planner CFP Clients Investment Planning 222

Nerd's Eye View

JANUARY 22, 2024

For example, an advisor may think of "risk management" in terms of life and property insurance coverage, whereas HNW clients may instead think of tax and estate-planning strategies as asset protection measures – particularly for the future wealth of their heirs. Read More.

Financial Advisor 196

Financial Advisor Insurance Coverage Charitable Planning Estate Planning 196

Alpha Architect

JANUARY 26, 2024

For investors that use trend-following strategies, Avramov, Kaplanski, and Subrhmanyam provided new evidence supporting momentum strategies and showed that the distance between short- and longer-term momentum signals provides additional explanatory power in the cross-section of equity returns.

Investing 119

Investing Investments 119

Abnormal Returns

FEBRUARY 21, 2024

apolloacademy.com) Inflationary expectations can have long term effects. thecut.com) Why appliances don't last as long as they used to. (mrzepczynski.blogspot.com) Inflation is still top of mind for consumers. bonddad.blogspot.com) Services spending has not yet returned to pre-pandemic levels. wsj.com)

Financial Advising 219

Financial Advising Distribution Retail Media 219

Wealth Management

APRIL 11, 2024

Bitcoin use case adoption will determine its long-term trajectory.

92

92

Calculated Risk

MARCH 5, 2024

However, in real terms, the National index (SA) is about 10% above the bubble peak (and historically there has been an upward slope to real house prices). The composite 20, in real terms, is 1% above the bubble peak. People usually graph nominal house prices, but it is also important to look at prices in real terms.

69

69

Investment Writing

APRIL 16, 2024

Once you define an abbreviation, should you skip the spelled-out term? Once you’ve introduced GDP as the abbreviation for gross domestic product, should you only use GDP in your articles or other publications? I also lean toward defining an abbreviation once and then using only the abbreviation. Yes, you should.

Wealth Management 52

Wealth Management Clients Investing Investments 52

Random Roger's Retirement Planning

APRIL 22, 2024

It’s impossible to say for sure why so many people barged into long-term bond funds last year." Not much has changed in terms of my approach to bonds, but the manner in which alts have evolved has led me to more use of alts also, lately, pricing for individual issues over treasuries hasn't been great.

Marketing 78

Marketing Marketing Financial Advising Math 78

Carson Wealth

NOVEMBER 29, 2023

Seven out of 10 people will eventually require long-term care in their lifetime. Let’s talk about the importance of long-term care insurance, why you might need it, go over the different types of long-term care and what to expect when going through the application process. What Is Long-Term Care Insurance?

Planning 143

Planning Insurance Assets Financial Advisor 143