In the latest edition of The Plan, Jamie mentioned the 4% rule of thumb for withdrawal rates. To delve a bit deeper, the 4% rule hails from the 1994 Trinity Study which looked at past returns for a “moderate” investment portfolio. This study determined that an initial withdrawal rate of 4%, annually adjusted for inflation, […]
Should You Buy Life Insurance From An Agent?
Most insurance agents are happy to reassure you they’re selling you a great policy, but there’s no getting around the conflict of interest. Confessions Of A Former Agent At the beginning of my career as a financial planner, I made my living selling various investment and insurance products, which gave me personal experience regarding the […]
Understanding Actual Returns vs. Average Returns
No financial planner can know what the future will bring, and none should pretend to. Markets, stock prices and ultimately return are all beyond anyone’s calculation or control. Any plan that reacts to market events is a plan that is doomed to fail, so a successful investor must appreciate that markets are unpredictable and accept […]
The Financial Crisis in Greece
Dimensional Fund Advisors’ Weston Wellington offers useful perspective regarding the financial crisis in Greece. Click the link below to view the video. DFA on the crisis in Greece
Savings Rates – Summer 2015
Many years ago when I was just beginning my budding career, an older and wiser financial advisor told me that “the only rule of thumb is that there is no rule of thumb”. My experience has taught me to believe it. Take savings rates for instance. Many have heard the rule of thumb: “Save 10% of […]
10 Steps For a Better Investment Experience
Click on any of the following steps for a closer look. Additional exhibit information and important disclosures.
Reconstitution Effect
Interesting article from Bloomberg “The Hugely Profitable, Wholly Legal Way to Game the Stock Market” Our clients know this as the Reconstitution Effect and that we have been using patient strategies to avoid/prosper from this effect for over a decade!
Socially Responsible Investments: The Good, The Bad, and The Green
These days, socially responsible investing, or SRI for short, is a popular practice among investors who consider themselves socially conscious, and who want to believe their money can do more than just increase the value of their own portfolio. And in theory, this seems like quite the win-win: after all, who wouldn’t want to see […]
The Crucial Difference Between Investment Brokers And Fee-Only Advisors
The common perception among the investing public is that all of the professionals who help clients manage their money are “financial advisors,” and all belong to one profession. This (mis)conception is dangerous and needs to change. In reality, there are two distinct businesses: investment sales and financial advice. Knowing the difference can be crucial to […]
Welcome Gabriel Twining – Spring 2015
In February, my youngest son Gabriel graduated from Saybrook University in Seattle with a Master’s Degree in Industrial Psychology with a focus on Organizational Systems. In March, he and his wife Jaimee (who has trouble spelling her name correctly) moved to Bellingham to escape the big city and be closer to family. Gabe’s extensive and […]