Random Roger's Retirement Planning

NOVEMBER 21, 2023

First up was a webinar about model portfolios at ETF.com. Outsourcing the work related to actually being an advisor would not feel right to me and I enjoy what I get to do including portfolio construction. I think that when investors hear about model portfolios they sort of think in terms of set and forget.

Portfolio 75

Portfolio Asset Allocation Math Management 75

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 105

Math Education Management Taxes 105

The Big Picture

MAY 9, 2023

So how do you then go from tax and audit practice to finance and investing? So I took it upon myself to go off and took a course in bond math, took another course in derivatives and realized the underlying fundamental concepts were barely, I mean, it wasn’t even high school math in most cases. Very different fields.

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Random Roger's Retirement Planning

JUNE 11, 2024

Avoiding long duration bonds was a big theme to my writing (and portfolio construction) for a long time, still is, but then the thought evolved to where I started saying that long duration fixed income has a source of unreliable volatility that makes it very difficult to model it in to a portfolio with any confidence.

Math 98

Math Portfolio Management Taxes 98

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 95

Marketing Marketing Math Portfolio 95

Random Roger's Retirement Planning

JUNE 3, 2024

Part of the equation is that he is convinced that tax rates have to go up to pay for out debt and so converting to a Roth now before tax rates do go up will result in people ending up with more after tax dollars versus just going the RMD route at what is now 73 on its way to 75. How much can you take from your portfolio?

Numbers 98

Numbers Taxes Retirement Accounting 98

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.

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Retirement Taxes Financial Advisor Accounting 98

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?"

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Marketing Marketing Financial Advising Math 98

The Big Picture

AUGUST 20, 2024

00:03:14 [Mike Greene] So that was actually an outgrowth from my experience coming out of Wharton and you mentioned the, the, you know, the transition of people who tended to be skilled at math or physics into finance. Initially I joined to help them manage their equity portfolio. It was the exact same trade.

Assets 173

Assets Management Portfolio Taxes 173

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 75

Portfolio Math Management Investing 75

Darrow Wealth Management

OCTOBER 1, 2022

On the flip side, not having a mortgage in retirement can be beneficial if it reduces overall lifestyle costs and how much you’ll need to draw from your portfolio in retirement. However, if the goal is to pay off a mortgage before retirement to spend would-be mortgage payments on other things during retirement, the math may not work out.

Retirement 80

Retirement Taxes Math Wealth Management 80

Random Roger's Retirement Planning

JUNE 10, 2024

We've talked just a couple of times about the market becoming increasingly concentrated which just in terms of math means that a diversified strategy will lag for as long as the big names do well. In the period available to study SPXE, there has been no difference in returns, volatility or portfolio stats.

Retirement 98

Retirement Asset Allocation Math Marketing 98

The Big Picture

SEPTEMBER 12, 2022

I — I loved math, but really, I was going to go down that literature route more than anything else and — and study Spanish literature. there’s a big focus on how do we optimize for tax efficiency, too. It’s different wealth regimes, it’s different tax regimes. RITHOLTZ: Applied Mathematics, Quants, those guys, yeah.

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Clients Wealth Management Banking Investing 299

The Big Picture

AUGUST 8, 2022

ANAT ADMATI, PROFESSOR OF FIANCE AND ECONOMICS, STANFORD GRADUATE SCHOOL OF BUSINESS: So, my journey starts where I took a lot of math. I was good in math and I love the math. So, I was kind of, in my romantic mind when I was in my early 20s, I was going to take but not give back to math, that kind of thing. ADMATI: Yes.

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Banking Government Insurance Taxes 204

The Big Picture

FEBRUARY 6, 2024

You wouldn’t be surprised to learn the tax consequences of owning a mutual fund is a part of it. 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. Really fascinating guy.

Valuation 130

Valuation Investing Investments Assets 130

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 75

Math Portfolio Marketing Marketing 75

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 1, 2024

We regularly look at capital efficiency and its potential uses in portfolio construction. Consider the following two portfolios. In terms of risk weighting or volatility weighting, a smaller allocation to semiconductors could deliver the same benefit to a portfolio as a larger weighting to broad tech.

Math 52

Math Portfolio Taxes Accounting 52

Random Roger's Retirement Planning

DECEMBER 17, 2023

These items for us include things like propane delivery (we could pay monthly), property tax and so on. 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. BTW, I mean that literally, it is all on a spreadsheet.

Retirement 75

Retirement Math Insurance Taxes 75

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.

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Assets Management Investing Investments 147

Random Roger's Retirement Planning

DECEMBER 11, 2024

If at the start of the year, someone put 100% into the Vanguard Balanced Index Fund (VBAIX) as a proxy for a 60/40 portfolio, then to employ a portable alpha strategy, they could use leverage to add something to hopefully make it additive to returns. So adding a potential alpha source on top of beta (the basic building blocks).

Portfolio 52

Portfolio Management Math Taxes 52

Random Roger's Retirement Planning

DECEMBER 3, 2024

There was an article on LinkedIn (via Abnormal Returns) by Victor Haghani that dug into the math working against leveraged ETFs. In a 60/40 portfolio, a 30% weighting to SSO would in theory equal a 60% weight to equities, opening the door to some sort of of capital efficient portfolio even if that just meant sitting in cash.

Math 52

Math Portfolio Retail Clients 52

Brown Advisory

MAY 3, 2018

We try to remind them that rising rates, despite their inevitable short-term effect on fixed-rate bond prices, do not necessarily mean long-term declines for bond portfolios generally or for municipal bond portfolios specifically. MUNICIPALS AND RISING RATES Simple math dictates that when yields rise, fixed-rate bond prices fall.

Taxes 52

Taxes Portfolio Valuation Clients 52

Brown Advisory

MAY 3, 2018

We try to remind them that rising rates, despite their inevitable short-term effect on fixed-rate bond prices, do not necessarily mean long-term declines for bond portfolios generally or for municipal bond portfolios specifically. Simple math dictates that when yields rise, fixed-rate bond prices fall.

Taxes 52

Taxes Portfolio Valuation Clients 52

Clever Girl Finance

JANUARY 29, 2023

Your assets include everything from the cash in your bank accounts to the value of your stock portfolios and the market value of anything tangible that you own such as a house or a car. Any medical debt, personal loans, or back taxes are also considered liabilities. Subtract your liabilities from your assets to get your net worth.

Budgeting 119

Budgeting Retirement Assets Education 119

The Big Picture

JANUARY 16, 2024

I was always good at math, but I really, I just didn’t relate to things that were more esoteric bonds options. As it did, I worked for a very large syndicator right out of school, which was right around the time the tax laws changed. But in those days, there were very tax driven investment. I have no family history.

Assets 264

Assets Investing Investments Management 264

Brown Advisory

AUGUST 1, 2019

Indeed, a Roth conversion has the potential to generate greater wealth than a traditional IRA during an individual’s or couple’s lifetime, and it can play a meaningful role in providing tax advantages to heirs throughout their lifetime as well. RMDs from a traditional IRA are taxed as ordinary income.

Planning 52

Planning Distribution Taxes Accounting 52

Brown Advisory

AUGUST 1, 2019

Indeed, a Roth conversion has the potential to generate greater wealth than a traditional IRA during an individual’s or couple’s lifetime, and it can play a meaningful role in providing tax advantages to heirs throughout their lifetime as well. RMDs from a traditional IRA are taxed as ordinary income.

Planning 52

Planning Distribution Taxes Accounting 52

Random Roger's Retirement Planning

NOVEMBER 22, 2024

As I read the FT article, I had a thought about how to try to make the fund work as part of diversified portfolio, not the entire portfolio. The way Portfolios 1 and 2 are weighted, the math works for being a 60/40 portfolio and then from there we add portable alpha/capital efficiency/return stacking.

Portfolio 52

Portfolio Math Assets Clients 52

Random Roger's Retirement Planning

JULY 9, 2023

Generally speaking, pensions are less viable than they used to be, the math doesn't work as well. Workers are not on the hook for managing their portfolios, don't have to manage withdrawal rates and have some security that their monthly check is what it is, maybe there's a COLA or maybe not but no surprises. Is he right? Is he wrong?

Retirement 66

Retirement Math Management Taxes 66

Darrow Wealth Management

MAY 22, 2023

Again just using simple math, this presumes the par value will roll over each month and reinvest at the same rate to get to the annual yield. Cash vs stocks: growth of $1M With an average annualized return under 1%, the cash portfolio only gains $92,000 over a decade. Compare that to the stated yield of 5.6% 467% a month.

Investing 89

Investing Investments Accounting Wealth Management 89

The Big Picture

AUGUST 29, 2023

So I came down, met with our head of the portfolio review department, which oversees our external managers, met with our head of brokerage, and then met with the head of bind indexing, who was Ken Volpert at the time. Also being cognizant of the tax implications of trading activity. And me and him had an instant connection.

Portfolio 130

Portfolio Investing Investments Numbers 130

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

NOVEMBER 19, 2023

If the 4% treasury portfolio pays out $50,000 today, it will pay the same $50,000 in 2038 with no growth in account value. Part of the math that determines options premiums is the risk free rate of return from T-bills. If inflation averages 3% per year for the next 15 years then in 2038 our expenses will be 50% higher.

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Retirement Accounting Math Healthcare 75

Random Roger's Retirement Planning

SEPTEMBER 29, 2024

Risk parity portfolios are particularly vulnerable when their active weighting algorithms fail to predict shifts in asset correlations." In the same period Vanguard Balanced Index Fund (VBAIX) which is a proxy for a 60/40 portfolio compounded at 10.89% with a standard deviation of 12.43%. The table/chart goes back to FAPYX' inception.

Portfolio 52

Portfolio Assets Management Math 52

Zajac Group

AUGUST 11, 2022

However, a down stock price might mean that you could score some tax breaks if you exercise and hold some of those ISOs. When the price is down, the move might help minimize alternative minimum tax (AMT). Controlling additional shares bought outright, coupled with a disqualified ISO sale, may result in a higher after-tax value.

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Taxes Sales Numbers Investing 52

Random Roger's Retirement Planning

DECEMBER 1, 2023

Part of the math that determines options premiums is the risk free rate of return from T-bills. We've also looked at countless ways to incorporate a small allocation to covered calls funds to help reduce portfolio volatility, so using them as alts in a matter of speaking. Covered call funds have many favorable attributes.

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Math Retirement Numbers Portfolio 74