The GOT system offers a viable and practical alternative to relying on outdated MPT tools. Although still widely in use, MPT-based calculators and analyzers can sometimes lead retirement savers to make decisions that aren’t in their best interest. That statement alone should trigger concerns from the mindful fiduciary.
Tag "Modern Portfolio Theory"
So one wants his epitaph to read “Here lies John Doe. He beat the S&P 500.” There needs to be an easy-to-understand and easy-to-implement system that properly reflects both your goals and the consequences of failing to meet those goals. Retirement savers want and need a system that represents a better way to set and meet retirement goals.
Many professionals and most of the current generation of finance professors have long ago removed “risk” from their investment decision-making algorithms. These forward-thinking folks recognize the greater importance of managing retirement saver behavior over managing irrelevant investment risk as it pertains to meeting or exceeding the goal of retiring in comfort.
Investing through mutual funds, including TDFs, is like using mass transportation. It’s not ideal but for many it’s the only realistic choice.
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State Run Plans DOA? Fiduciary’s Long Goodbye? and Products Trump Investments?
What if I told you that something vital to top business schools, the financial services industry, your business and your clients’ success and satisfaction doesn’t work as advertised?
The evolution towards more effective retirement planning is already underway, and many fiduciaries are breathing a sigh of relief because of it.
The future of true asset allocation may lie in understanding its past.
The results are in. Asset allocation doesn’t work in the long run. Rebalancing doesn’t produce better returns in the long run. In short, asset allocation as popularly practiced is myth.
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FiduciaryNews.com Trending Topics for ERISA Plan Sponsors: Week Ending 5/26/17
Compliance craziness, Fiduciary Rule rising, and tossing MPT (and Indexing, too?).