The Big Picture

SEPTEMBER 28, 2023

Even as inflation peaked in June of 2022 and fell from 9% to 3%, people remained angry. The Fed began its policy of ZIRP and QE while Congress put forth a puny extension of unemployment insurance and a modest temporary tax cut. The rate of change may have fallen, but everything remains more expensive.

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Government Medicine Economy Healthcare 306

Integrity Financial Planning

JUNE 12, 2023

As you plan for retirement, it’s important to consider tax optimization strategies to minimize your tax liabilities. Here are three key ways to optimize taxes in retirement, based on information from sources published between 2022 and 2023.

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Taxes Retirement Consulting Financial Planning 92

Nerd's Eye View

OCTOBER 4, 2023

Furthermore, inflation, though down from its peak in early 2022, remains above the Federal Reserve's long-term target of 2% despite the bank's attempts to tamp it down. What's driving many of the economic conditions today are higher interest rates resulting from the Fed's efforts to fight inflation. And even though U.S.

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Valuation Economics Economy Marketing 246

Good Financial Cents

SEPTEMBER 29, 2022

In this guide, we’re going to present the 10 best long-term investment strategies for 2022. The table below provides a quick summary of each of the 10 best long-term investment strategies for 2022, along with the main features and benefits of each. Below is our list of the 10 best long-term investment strategies for 2022.

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Investing Investments Retirement Planning Risk Tolerance 109

Fortune Financial

NOVEMBER 22, 2022

The clock is ticking for taxpayers who wish to minimize the taxes they will owe in the spring. The IRS does not tax what you divert directly from your paycheck into your retirement or health savings accounts. In 2022, the limit for a 401(k) plan is $20,500 or $27,000 if you are age 50 or above.

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Random Roger's Retirement Planning

APRIL 19, 2024

We work on theoretical portfolios here all the time that blend in strategies that really are negatively correlated or at least very little correlation. Both portfolios have higher standard deviations than the Trinity Replication but much higher returns. Enduring a bear market is about both, behavior and portfolio construction.

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The Big Picture

NOVEMBER 20, 2023

My firm RWM uses Canvas for those clients who want their portfolios to reflect their values. The most popular ESG application of direct indexing software has been to remove guns and tobacco from portfolios. It reflects the desire for investors to have their portfolios reflect their personal values. Oct 31, 2023) 4.

Taxes 195

Taxes Portfolio Investments Investing 195

The Big Picture

OCTOBER 27, 2023

Since the Great Financial Crisis in 2008-09, the income portion of portfolios has been almost an afterthought. For the decade1 from 2012 to 2022, 10-year Treasuries yielded less than 3% and averaged closer to 2%. Muni bonds were yielding 2-3%, a tax equivalent (depending on the state you lived in and your tax bracket) of ~4-5%.

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The Big Picture

DECEMBER 12, 2022

In the stock market, its anyone with a portfolio or 401k/IRA or trading account. They are why you sometimes owe capital gains taxes on mutual funds you have not yet sold. April 28, 2022). They do not follow the fiduciary rule but instead swap hats on a whim. You probably do not think very often about who your co-investors are.

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Random Roger's Retirement Planning

FEBRUARY 17, 2024

It did very well in the Pandemic Crash but not so well in 2022. From the AQR site , QSPIX "aims to deliver attractive risk adjusted returns with low correlation to traditional stock/bond portfolios by investing in a broad and diversified range of alternative risk premia." TAIL owns puts and intermediate treasuries.

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Portfolio Management Taxes Marketing 81

The Big Picture

AUGUST 30, 2023

1 The Executive Summary gives you the flavor of the timing issue: “The persistent gap between the returns investors actually experience and reported total returns makes cash flow timing one of the most significant factors—along with investment costs and tax efficiency—that can influence an investor’s end results.

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Assets Investing Investments Taxes 243

Nerd's Eye View

SEPTEMBER 19, 2022

2022 marks the 50 th anniversary of the enrollment of students into the first Certified Financial Planner (CFP) course, and in the years since then, financial planning (and the process of creating a financial plan) has changed extensively.

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Financial Planner Certified Financial Planner Financial Planning CFP 245

Random Roger's Retirement Planning

JANUARY 3, 2024

Portfolio 2 is 100% to Vanguard Balanced Index Fund (VBAIX) a proxy for a 60/40 portfolio. The portfolio stats are across the board better than VBAIX. With 75% in T-bills as constructed, the portfolio is pretty resistant to an adverse sequence of returns. Looking annually it is a little choppier. For XYLD it is 5.94

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Portfolio Taxes Marketing Marketing 74

Random Roger's Retirement Planning

DECEMBER 22, 2023

With that preamble, I started thinking about the 75/50 portfolio that I first started writing about during the Financial Crisis. I've mentioned 75/50 a couple of times in passing but the big idea was to create a portfolio that captures 75% of the upside of the equity market with only 50% of the downside. ARBFX 3.7%

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Random Roger's Retirement Planning

DECEMBER 26, 2023

Where I talk about portfolios that are simplicity hedged with a little complexity, while the simplicity is usually cheap, hopefully the complexity, although probably expensive in nominal terms, is also cheap versus the benefit delivered to the portfolio. Having almost half the portfolio in funds that cost 1.5-2%

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Portfolio Accounting Retirement Marketing 74

Abnormal Returns

FEBRUARY 16, 2023

bloomberg.com) Bitcoin is at its highest level since June 2022. ft.com) Why where investors mark the portfolios can be all over the place. axios.com) Funds Tax efficiency is the secret sauce of ETFs. Markets The FTSE 100 Index has risen above 8,000 points for the first time ever. pragcap.com) Fidelity is hiring!

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Financial Advising Engineering Valuation Retail 148

Nationwide Financial

JANUARY 25, 2023

Review risk tolerance and current asset allocation strategy It’s important to ensure your clients’ portfolios align with their risk tolerance because taking too much risk can negatively impact their ability to navigate market fluctuations. Suppose they made emotional investment decisions during the market volatility of 2022.

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Risk Tolerance Retirement Planning Asset Allocation Retirement 102

Random Roger's Retirement Planning

JUNE 9, 2024

The reason for the article is that "some of these funds are worthy diversifiers for a traditional fixed allocation portfolio." All three are more volatile than the Vanguard Balanced Index Fund (VBAIX) which is a proxy for a 60/40 portfolio. It is a very small fund but it has a 5 star rating probably because it was up in 2022.

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Random Roger's Retirement Planning

MARCH 29, 2024

Return Stacked ETFs wrote a short paper in support of their ETF suite about how to incorporate return stacking into a portfolio. For anyone new, return stacking, also known as capital efficient, involves leverage to build a diversified portfolio. The idea is not that you would put 100% of a portfolio into that fund.

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Portfolio Asset Allocation Assets Management 97

Nationwide Financial

JANUARY 26, 2023

Key Takeaways: 2023 could be a really good year to fund a Roth account because of low tax rates and changes to how the standard deduction, tax brackets, and retirement account contribution limits are adjusted for inflation. The lower the tax rate, the more attractive the Roth contribution becomes relative to a pre-tax contribution.

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Accounting Retirement Taxes Retirement Planning 98

Random Roger's Retirement Planning

FEBRUARY 20, 2024

I replicated Corey's idea with Portfolio number 2 as follows. Below, I compared it to VBAIX and I built Portfolio 3 that I think delivers almost the same thing as Corey's idea. Both Portfolio's 2 and 3 had a little better growth with a little lower volatility. Both alt portfolios are closer to leveraging down than leveraging up.

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Portfolio Taxes Numbers Assets 94

Random Roger's Retirement Planning

APRIL 10, 2024

I also quipped that people forced to work in "retirement" should not be penalized having to pay more income tax on their Social Security payout. If you have a combined $40,000 benefit, that's like having another $1 million in your portfolio. In this context, a $1 million Social Security "portfolio" is considered fixed income.

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Portfolio Retirement Asset Allocation Taxes 75

Random Roger's Retirement Planning

SEPTEMBER 26, 2023

First on Monday's post about using return stacking to slightly increase the retirement withdrawal rate, I forgot about the WisdomTree Core Efficient Plus Fund (NTSX) which is leveraged up such that 67% in that fund equals 100% into a 60/40 portfolio like the Vanguard Balanced Income Fund (VBAIX).

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Portfolio Management Retirement Taxes 96

Random Roger's Retirement Planning

AUGUST 1, 2024

I will lay out a portfolio concept that is hopefully robust when compared to more standard benchmarks. If MAXI had been flat, the portfolio would have lagged by about 5%. And of course BLNDX in addition to some of the equity allocation also adds managed futures to the portfolio. ARBIX's worst year was 2022 when it dropped 0.54%.

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Portfolio Management Taxes Numbers 52

Random Roger's Retirement Planning

MARCH 30, 2024

I stumbled into some content about model ETF portfolios including one interesting portfolio that was comprised of ETFs that I'd mostly never heard of. It was impressive that the portfolio was not just a collection of the largest Vanguard, iShares or Schwab ETFs. The above goes back to GHTA's inception.

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Asset Allocation Portfolio Assets Management 96

Random Roger's Retirement Planning

AUGUST 31, 2024

One of my many quirks (we all have them) is a never ending fascination with investment portfolios that either are or are thought to be sophisticated like the Permanent Portfolio, various endowment portfolios and so on. The Trinity Portfolio by Meb Faber and Cambria Investments is another example. It was up 23% that year.

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Portfolio Management Investing Investments 52

Random Roger's Retirement Planning

MAY 8, 2024

ETF Think Tank had a fun article looking at a bunch of specialty ETFs in pursuit of building a FIRE (financial independence/retire early) portfolio. The point is not read the article and then run out and buy those funds but is there anything to learn from the article about portfolio construction or how assets blend together?

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Portfolio Retirement Assets Management 97

Random Roger's Retirement Planning

MAY 4, 2024

When I put together that they were running a capitally efficient portfolio I decided I wanted to play around with the 3x funds little bit here. None of the portfolios are leveraged up. Portfolios 2 and 3 lagged badly in 2020 but that corrected in 2022. We've done some work with 2x funds but very little with 3x.

Portfolio 89

Portfolio Management Taxes Assets 89

Random Roger's Retirement Planning

APRIL 3, 2024

You can see that 60/40 equities/managed futures stayed close to 60/40 equities/bonds at a time when managed futures was doing poorly and then pulled ahead in recent years including going up 3.25% in 2022. 90/40 had a higher CAGR than traditional 60/40 but lower than 60% equities/40% managed futures in Portfolio 3.

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Numbers Portfolio Management Retirement 96

Random Roger's Retirement Planning

OCTOBER 29, 2024

Fund provider Tidal/ETF Masters, more of a white label than an actual provider, had a fun article titled Building A Financial Independence/Retire Early Portfolio With ETFs. The article spells out several alternative strategies to build out a portfolio once you achieve FIRE. SHRIX fell 10% from Ian.

Portfolio 52

Portfolio Retirement Retail Investing 52

Random Roger's Retirement Planning

APRIL 26, 2024

Blending together assets/strategies with different attributes, correlations and expected behaviors plays a huge role in how I construct portfolios. With all that in mind, I wondered what a portfolio that was 50/50 tech/discretionary would look like versus the S&P 500. This is something I've been doing and writing about for ages.

Marketing 95

Marketing Marketing Portfolio Management 95

Good Financial Cents

DECEMBER 22, 2022

For example, the S&P 500 ended 2022 down by quite a bit. One of the challenges of building a diversified portfolio with individual stocks is that some come with a high sticker price of $2,000 per share, $5,000 per share, or more. Low minimum investment – $10 Diversified real estate portfolio Portfolio Transparency.

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Investing Investments Risk Tolerance Accounting 108

Random Roger's Retirement Planning

JANUARY 10, 2024

When we talk about expat living, I always say to not sell your house, to rent it out and live off the rental cash flow, allowing Social Security and the portfolio to grow. Portfolio 2 was spared a couple of hundred basis points which is better than nothing and Portfolio 3 did very well in 2022.

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Retirement Planning Portfolio Retirement Planning 98

Good Financial Cents

JANUARY 26, 2023

That’s the best way to get the kind of return on your investments that you’ll need to build the kind of portfolio you’ll need to make early retirement a reality. Ally Invest offers some of the lowest trading fees on the market, 24/7 customer service, and professionally managed portfolios to meet your investment goals.

Retirement 122

Retirement Taxes Retirement Planning Accounting 122

Nationwide Financial

JUNE 9, 2023

Key Takeaways: The last two years have been marked by the highest inflation rates in decades; your clients saving for retirement can use this to their advantage through short-term investments, tax deferral, and insurance products offering better benefits. This can mean an unexpected tax liability for the uninitiated.

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Retirement Clients Certification Taxes 98

Random Roger's Retirement Planning

AUGUST 10, 2024

2022 so I set the above to start July 1, 2022 on Portfoliovisualizer with no rebalancing in case I was correct about wanting to set it and forget it. With the Bitcoin version, the rest of that portfolio is up enough that if Bitcoin went to zero from here, the account would still be up noticeably. I sent him this on June 30.

Portfolio 52

Portfolio Management Clients Taxes 52

James Hendries

JULY 13, 2023

[i] Private Foundation – A private foundation is created when someone sets up a tax-exempt organization but does not file to be recognized as a public charity. The tax deduction is lower at 20 percent of the taxpayer’s AGI if the gifts are appreciated assets or securities. [ii] A CRT may be partially tax-deductible right away.

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Distribution Taxes Assets Accounting 98