Category: Planning for Retirees
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Revisiting the Expected Returns of Various Asset Classes
September 30, 2023 After a stellar first half of 2023, the third quarter of 2023 saw losses in most U.S. stock asset classes, and even more significant losses in many U.S. real estate-related asset classes. Despite a dismal September, for the quarter foreign developed markets and emerging markets fared generally better. While there are many…
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Fiduciary Papers #12: The Prudent Investor Rule’s Requirement for Tax Efficient-Investing
OVERVIEW: THE PRUDENT INVESTOR RULE The Uniform Prudent Investor Act (UPIA) (1995), adopted in some form by all 50 states, applies to the investment of private trust funds. The Prudent Investor Rule, which forms the core of the UPIA, also applies in other contexts, such as to guardians, conservators, executors of estates, trustees of charitable…
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Fiduciary Paper #10: Is Proper Tax-Efficient Portfolio Design and Management a Duty, and is it Scalable?
I have increasingly witnessed registered investment adviser (RIA) firms, as well as brokerage firms, generally disavow (often in their client services agreement) any duty to manage the investment portfolios of their clients tax-efficiently, often through a blanket statement that “tax advice is not provided.” This post seeks to ask, and generally answer, two questions: First,…
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Use of Factor Investing in Portfolio Design for Retirees and Accumulators
In previous posts I discussed several “factors” – characteristics of stocks – that can be utilized in portfolio construction to seek to improve equity (stock) returns over long periods of time (10-20 years) with a high degree of probability. Over the next 20 years, exposure to these factors brings with it a very strong probability…
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The Major Benefits of Utilizing Factor-Based Investing in Investment Portfolios
In several previous blog posts, I discussed several “factors” – characteristics of stocks – that can be utilized in portfolio construction to seek to improve equity (stock) returns over long periods of time (10-20 years) with a high degree of probability. Over the next 20 years, exposure to these factors brings with it a very…
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SECURE ACT 2.0: Using 529 Accounts to Fund Roth IRAs
Let’s face it. Most of the funding of 529 accounts comes from higher-net-income parents, and/or wealthy grandparents. One of the problems with 529 accounts is that – if the money is not utilized for college (for example, the beneficiary does not attend college, or receives a good scholarship) – then alternative uses for the 529…