Recently, a client asked if they should be taking their RMDs at the beginning of the year. Given the market’s recent upward performance, a market correction is due, thought the client. By that logic, it should make sense to take the RMD sooner rather than later, right? Perhaps, let’s see what the numbers say. I […]
Investing
Corporate Bonds vs. U.S. Government Bonds
If you haven’t already, please go ahead and put yourself to sleep by reviewing my latest paper in the Journal of Financial Planning. In it, I discuss bond investing – specifically what happens when you pit United States government bonds against corporate bonds. Don’t want to read the paper? I don’t blame you. Here are […]
Should You Seek Out the Small Value Premium if You Hold Bonds?
Dimensional Fund Advisors was one of the first vehicles that gave investors access to the small and value premiums. These premiums enabled investors to earn a higher investment return. But, in investing there is rarely a free lunch – with Modern Portfolio Theory being the rare exception. It was only by bearing the greater risk of […]
Endowment Investing Case Study: The San Diego Foundation
The San Diego Foundation bills itself as grantmaking for San Diego nonprofits and our community. As a San Diego resident, I can’t help but like that mission statement. In fact, I’m even disposed to help the Foundation achieve its mission. How? With a portfolio analysis, of course! The Theoretical Problem with San Diego Foundation Endowment […]
Why Drawdown Correlation Is a Metric Worth Considering
Why is Drawdown Correlation a metric worth considering? More than that, what is Drawdown Correlation? If correlation measures the performance of one investment relative to another over time, then drawdown correlation makes that measurement only when that first investment is in decline. (Full disclosure: I had not yet found a term that describes correlation exclusively […]
Follow-up to my Article on Dollar-Cost Averaging & CAPE in the FPA’s Journal of Financial Planning
I had an article published in the Journal of Financial Planning on dollar-cost averaging. You can read it here. You can also download a Powerpoint presentation version of it here. I have received the same questions from advisers over and over again, both in person at presentations, and via email from those who had read […]