Tag: Asset Allocation
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Is Asset Location Strategy Worth the Effort?
Last week, we discussed the different qualities and benefits of pre-tax accounts like Traditional IRAs and 401Ks compared to Roth accounts. Since then, there were a couple of media discussions that go more into depth on the tax implications of asset location decisions. First, Merit Financial Advisor’s posted an excellent video breaking down the “problems”…
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Is the Lifecycle Model Dead? New Research on Optimal Retirement Asset Allocation
Recently, I’ve been exploring optimal retirement asset allocations. Conventional wisdom suggests that savers should invest more conservatively as they approach retirement. The lifecycle model of investing, for example, posits that an individual’s investment strategy should change over their lifetime based on their age, financial goals, risk tolerance, and time horizon. During accumulation, investors typically have…
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Lifecycle Investing and Stock Market Mean Reversion
A short follow-up this week to a post a couple of weeks ago when we discussed the stock market’s longest losing streak. At the time, I was working on an asset liability matching exercise to inform my asset allocation. My interest in this topic was inspired by a presentation from Bill Bernstein over at Paul…
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From Market Noise to Economic Footprint | Part 2
If you are interested in fundamental weighting, several prominent asset management companies have created fundamentally-weighted index funds. Many of these funds are based on the FTSE RAFI series of fundamental equity indexes, which have been compiled in collaboration with Research Affiliates since 2005. These indexes are constructed using a combination of four core fundamental measures:…
Fictitious Capitalist 