tag:blogger.com,1999:blog-80913672878139935332024-03-05T07:48:22.665-05:00Do-It-Yourself (DIY) InvestorThoughts and observations for those investing on their own or contemplating doing it themselves.Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.comBlogger987125tag:blogger.com,1999:blog-8091367287813993533.post-58994758943327143162023-11-28T21:32:00.000-05:002023-11-28T21:32:21.243-05:00Party Question I attended a holiday party this past week and became involved in a game of answering broad questions. One was "what advice would you give your younger self?"The usual answers were forthcoming : -pay more attention to a career-be more honest-appreciate my parents more etc.I reflected for a moment and said, "I would tell my younger self to sell the house, borrow as much as I Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-13032248996194798892021-09-24T09:34:00.000-04:002021-09-24T09:34:56.946-04:00Deja Vu? In the early 1990s the consensus view was that Japan was on the road to economically conquer the world. Then it ran smack dab into the leveraged real estate trap, the bubble exploded, and to this day still have not come back. Today global financial markets are fixated on China's Evergrande and its over leveraged real estate problems, with bankruptcy a real possibility. This Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-22260318014241582922021-09-24T09:02:00.000-04:002021-09-24T09:02:08.443-04:00Catching an eel I had to chuckle watching Fed Chairman Powell's post FOMC meeting
press conference yesterday. The reporters never give up seeking to pin
him down but he is much to slippery for that.One example: He said
a "good employment report" could get the taper under way. Well, what
exactly is a "good employment report"? This reminds me of the
committee's accepance of inflation running aboveRobert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-13397749059558896312019-05-24T08:56:00.000-04:002019-05-24T08:56:42.803-04:00A Lady With Problems?Sometimes facts aren't easy to grasp:
Gloria C. Mackenzie formerly of Maine now of Jacksonsonville Florida
84 years old in mid 2013
mid 2013 wins $278 million after taxes lottery
So, you're thinking "great" she rides off into the sunset and enjoys the latter years of her life? Not so fast. Fast forward to today.
Her son, who has a power of attorney, hired an "advisor"/radio personality Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-23719327837601137292019-05-14T10:36:00.000-04:002019-05-14T10:36:46.556-04:00Putter Around On Your Broker SiteChoosing a discount broker is not difficult today. There are several good ones out there and there are unbiased evaluations of them that prospective customers can exploit. Here is one at
NerdWallet .
Sometimes I counsel people who are looking for a broker and I suggest Schwab but point out that there are others that are also good such as Fidelity, TD Ameritrade, Vanguard etc.
I also Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-31176496040472618692019-05-02T19:00:00.000-04:002019-05-02T19:00:15.571-04:00Warren Buffet's AdviceIn the last post I presented Warren Buffet's often repeated advice to the average investor to invest in low cost index funds. He simplifies and recommends an index fund tracking the S&P 500.
This got me to recalling a recent post on LinkedIn about an Uber Driver who got advice from his passengers. He asks his passengers for the one message in life that they would suggest and then he asks Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-78403392544485349712019-04-30T09:32:00.000-04:002019-04-30T09:32:40.136-04:00Retirement PlanningJust finished the short book,
How to Retire With Enough Money by Teresa Ghilarducci.
Ms. Ghilarducci is a heavyweight in the world of retirement planning and the overall concern with the looming retirement crisis in the U.S.
So I was surprised to come away disappointed. The book is mainly directed towards promoting her plan which is basically a hybrid of Social Security - take money outRobert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-18977560075410284462019-04-17T09:23:00.000-04:002019-04-17T09:23:46.797-04:00Try to Avoid "Tilt"Poker players know about "tilt". Taken from pinball terminology it refers to losing good poker technique following a "bad beat". Every poker player has been bluffed by a pair of tens when they held a pair of kings. This can play havoc with one's emotions and can lead to stupid (this is the appropriate word) bets. The cure is to get up, walk around, take some deep breaths and know that emotionallyRobert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-15676811601669278162019-04-16T09:11:00.002-04:002019-04-16T09:11:44.186-04:00Equity Indexed Annuities (EIA))Here is an excellent,
short piece on Equity Indexed Annuities
written by Robert Huebscher and presented on Advisor Perspectives.
Equity Indexed Annuities seem to offer the best of all worlds: equity returns with no down side risk.
In the article Huebscher shows how these vehicles are misrepresented by insurance salesman. Alas, once again there is no such thing as a free Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-19764044353705470622019-04-13T08:16:00.000-04:002019-04-13T08:16:44.368-04:00Impact of Expense RatiosJane Bryant Quinn in AARP Bulletin, April 2019, p. 33 states the following:
Assuming that a $10,000 investment you made in a zero-fee fund grew an average of 6 percent annually, you'd end up with roughly $32,070 after 20 years. The same fund with a 1.1 percent annual fee (also called an expense ratio) would net you only about $25,710, or $6,360 less.
The average stock mutual fund in 2017 chargedRobert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-38955220619468801602019-04-12T16:08:00.000-04:002019-04-12T16:08:19.672-04:00Alphabeticity BiasIn a
recent research paper
it was reported that the alphabetical listing of Fund choices affects the selections 401 (k) participants choose.
An example was provided in 401K Specialist magazine ( issue 2, page 7) listing 13 Funds alphabetically. They stated that renaming the 11th Fund listed from "Royce Pennsylvania Mutual" to "American Royce Pennsylvania Mutual" and thereby moving it 10Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-35297226033052137592018-09-12T09:50:00.000-04:002018-09-12T09:50:15.439-04:00An annuity worth looking at (part 2)In the last post we looked at the basics of the longevity annuity. Simply, give an insurance company money today and at a specified time in the future it pays you until you die. It is like Social Security - a simple product that avoids the number 1 fear of retirees - running out of money.
The longevity annuity can be held in an IRA up to $130,000 and reduce required minimum distributions at ageRobert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-28774056141828596992018-09-05T08:53:00.000-04:002018-09-05T08:53:03.489-04:00An annuity worth looking at (part 1)Let me say at the outset that I am not a fan of annuities. I've seen too many that are impossible to understand even by those who sell them, involve egregious commissions and do not deliver what customers expect.
That said, there is one that I present to clients that is worth looking at. It can enable an investor to take more risk by increasing the allocation to stocks and at the same time Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-70338795163371679432018-07-05T11:53:00.000-04:002018-07-05T11:53:51.357-04:00Thank You Kimberly Clark Corporation!Back in 2013 I sold a house, got a nice check at settlement and had to consider how to invest it. It was part of downsizing and the important objective was to generate income.
I looked at 3 possibilities: an annuity, the 10 year Treasury note, and dividend stocks.
The annuity paid about 4.5% but you lost control of the assets. For me, that was a non-starter. To be given serious consideration Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-22797884829321854372018-06-24T11:24:00.000-04:002018-06-24T11:24:03.832-04:00Be Careful With StatisticsMark Hulbert recently published a post,
"This is what the stock-market indicator with the best track record is telling us.",
on MarketWatch.com, based on Ned Davis research arguing against those who believe that high "sideline cash" could lead to a strong upsurge in equities.
Let me say right off that I don't know where the market is going. I believe that over the next 10 years Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-31248723044208889602017-07-09T11:34:00.000-04:002017-07-09T11:34:13.007-04:00Investors Need to Do HomeworkThis week's Barron's (page L6) has an Oppenheimer ad featuring revenue weighted etfs. The ad implies that cap weighted etfs are out of date and weighting holdings by other measures are more sophisticated. They present revenue weighted efts. They say that weighting by revenue is "the smarter way to weight the index".
One example they give has the ticker symbol RWL.
They provide a website to Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-21154855004850398172017-07-07T17:51:00.000-04:002017-07-07T17:51:02.367-04:00Portis ripped off
I know this is kind of gross and probably gets me in trouble with the SPCA but it is what happens to copperheads who come too close to my cabin.
Sadly, Clinton Portis the great Redskin running back, considered doing the same to his financial advisors who ripped him off to the tune of $11 million!
Clinton Contemplated Murder (USA Today)
This too often sad tale of professional athletes is Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-32636865416084333872017-05-12T12:21:00.000-04:002017-05-12T12:21:01.641-04:00Types of OrdersI frequently point out to new DIY investors that buying an index fund is typically simpler than buying something off of Amazon. Generally it is a matter of clicking a "trade button", putting in a ticker symbol and figuring out the number of shares. This merely requires dividing the dollar amount to invest by the share price.
The process is made straightforward and simple for a good reason. The Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-51533989217525473702017-05-04T09:02:00.000-04:002017-05-04T09:02:13.730-04:00A First Pass Investment TestWe are responsible for our own retirement. Defined benefit plans are going the way of the dinosaur. Now we manage our own IRAs, 401(k)s and taxable accounts to create a nest egg from which we will drawdown at some point in the future, hopefully when we are retired or semi-retired.
What is not well known, despite considerable publicity, is that billions are going into the coffers of Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-26902704449761376142017-04-29T20:19:00.000-04:002017-04-29T20:19:20.547-04:00Graduation GiftOk, so you're going to a graduation party and you need a gift. One thing you can count on is that the graduate is financially illiterate. Schools don't teach financial literacy. You may be financially illiterate as well. Or, in fact, you may have a slew of suggestions for the graduate on the financial literacy front. Forget about them and instead consider giving a book that explains Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-10364740124386288892017-03-22T10:00:00.002-04:002017-03-22T10:00:59.236-04:00Trump and the "Fiduciary Rule"Here's a nice opinion piece on the situation with the "Fiduciary Rule" and its potential blockage as it is on the verge of going into effect written by Mitch Tuchman of Rebalance IRA, "Trump's last-second swipe at an Obama retirement rule" (MarketWatch, 3/22/17).
The rule requires investment advisors, in particular insurance companies and brokers, to act in the best interests of their Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-17991854545359433492017-01-25T20:37:00.002-05:002017-01-25T20:37:33.052-05:00Retirees Don't Run Out of MoneyPolls consistently show that the number 1 fear of retirees is running out of money. But rarely do retirees literally run out of money. It doesn't happen that Joe goes to Mildred and says "darling we've only got $100 in our account. What are we going to do?"
Instead, what people tend to do is run out of lifestyle. More typically Joe will go to Mildred and say, "honey, it looks like we can only Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-74450632799940176942017-01-24T08:49:00.000-05:002017-01-24T08:49:30.792-05:00On the Difference in Saving RatesBen Carlson at MarketWatch has produced interesting data on savings rates in
Opinion: How a slight edge in investing adds up to big money over time.
In his article he starts with a short story from Atul Gawande on how small changes have a big impact in the medical field where people look for big, miraculous changes. As an aside Dr. Gawande is one of my favorite authors and I highly recommend Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-34211067498562444842017-01-08T10:05:00.001-05:002017-01-08T10:05:37.383-05:00A Good Year For Retirees2016 was a good year for DIY investor retirees in the investment markets. For a basic asset allocation using low cost ETFs the results were approximately as follows:
Large Cap 35% = +11.80% SPY
Small Cap 10% = +19.89% SCHA
International 15% = +4.66% IXUS
Bonds 35% = +2.56% AGG
cash 5% = +0.1%
The total portfolio return approximated +7.77%.
The important point is that it exceeded 4% (the Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0tag:blogger.com,1999:blog-8091367287813993533.post-55315588531076531102016-12-23T08:59:00.000-05:002016-12-23T08:59:18.986-05:00A New Year's ResolutionThis resolution is for your mid sixties self. If you haven't met him or her there are aps out there whereby you can take a picture of yourself and age it. If you have problems saving then do it and meet your future self. It helps some people.
Now I know many people don't like to think about getting older. Get over it. I'm older and semi retired and it's great. Admittedly there are days where it Robert Wasilewskihttp://www.blogger.com/profile/04536814650758511673noreply@blogger.com0