How do I present probabilistic outcomes (i.e., Monte Carlo simulations) to financial planning clients? I was asked this question recently – while consulting with a company on developing their financial planning software. Fortunately, the answer is straightforward: frame Monte Carlo results not as the likelihood of financial plan failure, but as the “probability of adjustment.” […]
Just Buy Value
I’ve had a couple of conversations with some lay investors of late. Both times, friends approached me with questions about investing. They were looking to profit off the pandemic, intrigued by the opportunity to buy certain stocks on the cheap. Travel and tourism stocks – they reasoned – were ripe for recovery (once the impacts […]
Intangible Beanie Babies
I wrote a piece about Bitcoin a few years back. Since then, Bitcoin mania has waxed, waned, and waxed again. Given its new record high and accompanying successive round of mania, it’s time to return to the subject of Bitcoin. Why Bitcoin Fails Firstly, Bitcoin a terrible store of value. Compare Bitcoin to cash, specifically […]
Customer Management Relationship (CRM) Software Best Practices for Financial Advisors
Recently, I was able to connect with a fellow advisor. Our topic of conversation was managing firm processes. “What is the best way to stay on top of a client task?” he asked. That’s an easy answer: a well-implemented customer relationship management (CRM) tool. It doesn’t matter if you’re using JunXure Cloud, Redtail, or even […]
Gambling with Structured Notes
This post posits that structured notes are a bad investment. Fortunately, I have an easy task ahead of me. Why so easy? Because the reason that structured notes are a poor investment is obvious – and easy to understand. We don’t even have to look at any complicated math to understand why. Banks Strive to […]
Why Invest in Bonds Today?
What is the case for investing in high-quality fixed-income? With interest rates at historic lows, many investors are shunning low-yielding United States Treasuries. Is this the right investment move? It depends. The case for holding bonds is a function of your viewpoint of a bond’s role in your investment portfolio. So, why do we own […]