Inflation and Idiots
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I would rather win games 28-10 than 10-7.
I see your point and it is possible, I just don't think it is logical.[quote=Ron 14]
I would rather win games 28-10 than 10-7.
I see your point and it is possible, I just don't think it is logical. [/quote] You may want to win in blowout fashion with the chance of losing, but what do your clients want? Are they truly that dumb that they can't be trusted with any of their money?[quote=deekay][quote=Ron 14]
I would rather win games 28-10 than 10-7.
I see your point and it is possible, I just don't think it is logical. [/quote] You may want to win in blowout fashion with the chance of losing, but what do your clients want? Are they truly that dumb that they can't be trusted with any of their money?[/quote] The clients are not the dumb ones in that relationship.[quote=deekay][quote=Ron 14]
I would rather win games 28-10 than 10-7.
I see your point and it is possible, I just don't think it is logical. [/quote] You may want to win in blowout fashion with the chance of losing, but what do your clients want? Are they truly that dumb that they can't be trusted with any of their money?[/quote] Well if they knew exactly what to do with their money they wouldn't need you or me. From what you are telling me you coach people to save more of their income. Big f**king deal. Great value added service. That is genius ![quote=Jebediah][quote=deekay][quote=Ron 14]
I would rather win games 28-10 than 10-7.
I see your point and it is possible, I just don't think it is logical. [/quote] You may want to win in blowout fashion with the chance of losing, but what do your clients want? Are they truly that dumb that they can't be trusted with any of their money?[/quote] The clients are not the dumb ones in that relationship.[/quote] And there is Jeb, the market timing guru who again comes out of left field with commentary that doesn't make sense. What country are you from Jeb ? It definitely isn't English speaking.[quote=Ron 14][quote=deekay][quote=Ron 14]
I would rather win games 28-10 than 10-7.
I see your point and it is possible, I just don't think it is logical. [/quote] You may want to win in blowout fashion with the chance of losing, but what do your clients want? Are they truly that dumb that they can't be trusted with any of their money?[/quote] Well if they knew exactly what to do with their money they wouldn't need you or me. From what you are telling me you coach people to save more of their income. Big f**king deal. Great value added service. That is genius ![/quote] Not only do they need to save more, I give them advice on where to save. Unlike you, I don't need to shill some garbage mutual fund in order to make money off a client. I don't have a problem with someone who wants to invest in a piece of real estate if they're set up properly. You have to convince them they shouldn't in order to make a paycheck.That is exactly it. I get paid the most on laddered fixed annuities so I have no idea what this guy is talking about. I also benefit from referring back to bank partners. If anything I have more options available to me because I am in a bank program. Whatever. This guy is selling glorified savings accounts and coaching people to save more. I think establishing an emergency fund is financial planning 101, but this guy is building a practice on it.
Wrong. I'm able to show clients that they don't need to put as much money at risk as you do to reach their full potential.That is exactly it. I get paid the most on laddered fixed annuities so I have no idea what this guy is talking about. I also benefit from referring back to bank partners. If anything I have more options available to me because I am in a bank program. Whatever. This guy is selling glorified savings accounts and coaching people to save more. I think establishing an emergency fund is financial planning 101, but this guy is building a practice on it.
When did I say how much I put at “risk” ? I didn’t. So you don’t really have a clue. 25% equities is that evil ? 50% ? 75% for a 40 year old ? Nevermind. I don’t even want your explanation.
Ron, honest question…
Aren't you afraid of a W shaped recession? I look at the market (like the run-up today) and can't help but feel that it's totally irrational and that we are due for a correction.I have no idea. Could we retest lows ? Yes. Is it possible the Dow never goes below 8k again, EVER? Yes. Since I don't know exactly what is next, and if someone claims they do they are nuts, why play that game? Diversify, Own different Asset Classes, and Rebalance.
Keep in mind I work at a bank where my average account is around 100k and I dont have 100% of most of my clients assets. Is there a better way ? Do these people need anything else ? Does it matter if I do the same thing with someone who has 1mil ?You're right. You didn't. But you are convinced you have to put your prospects money at risk when they don't want to. And that's my point - to outpace inflation, you can either put more systematic money into one's savings and growth accounts, or they can put more money at risk. I'd say on average, my clients have a more conservative allocation than most people of a similar age. The difference is they save more of their income than their peers. They could put more money at risk if they wanted to, but they don't want to.When did I say how much I put at “risk” ? I didn’t. So you don’t really have a clue. 25% equities is that evil ? 50% ? 75% for a 40 year old ? Nevermind. I don’t even want your explanation.
I put more of my clients money at risk then they want to ? No, I profile them and their tolerance for account fluctuations. If they don't want it, fine. Do I think they should ? Yes, and I tell them so.
How does that work? If you have a savings account with a 2% APY, putting more money into it outpaces inflation? Deekay, I assume you are talking about Par WL. I do agree that some of the big mutual companies that pay pretty good div rates is pretty astonishing and very conservative.to outpace inflation, you can either put more systematic money into one’s savings and growth accounts, or they can put more money at risk.
Because you've never lived in a hyper-inflated world, don't believe that you never will. Jus' saying.…So, you are telling me that 6%+ returns aren’t going to keep pace with inflation? …
[quote=LockEDJ]
Ice ... No ... I don't think I missed it, although I perhaps overstated my point. A simple return to 1979 America would be sufficient, not Zimbabwe, to destroy seniors that might (overweight) investments in intermediate to long term individual bonds today ... in only five years. And I've read some evidence that investing in any laddered bond portfolio (particularly in callable bonds) that suggests it might in and of itself be flawed as a strategy, but that's another story. FWIW - I disagree with the tenor of attempting to change a client's predisposition. Right or wrong, I believe my job is only to educate the client of the ramifications of his many choices and faithfully execute his wishes after that point, incurring the least possible expenses along the way. In that we agree. [/quote] This is total crap!Does anybody worry that if interest rates go up that bond funds will do poorly.
Isn’t the reason that bonds have gotten 6 pct over the past 20 years is that interest rates have gone down steadily.
Because you've never lived in a hyper-inflated world, don't believe that you never will. Jus' saying. [/quote][quote=iceco1d]…So, you are telling me that 6%+ returns aren’t going to keep pace with inflation? …
I'm starting to think "just saying" is pretty worn out. Just saying...
These boards are entertaining to say the least. I’ve been a long time lurker. I particularly enjoy when one part of the argument is that ‘old strategies, buy and hold, etc’ don’t work it’s a brave new world, etc etc. Then a few pages later the argument of ‘we could return to 1979 hyperinflation, or the remember back in such and such date when…’.
And then on top of it all, people will bash 'experts' on TV or analysts or some other person for their thoughts. It's as if having a few years in the industry has made everyone a genius with their product, clients, etc but they fail to think that it's made anyone else a genius also. The bottom line is that no one knows the right answer. They think they know but they don't. You cannot say with certainty anything. You can however point to the past and use that as a guideline. The arrogance of anyone who says their way is the only way is astounding. Why slam mutual funds? They are more expensive, but they for the most part, outpace inflation and give clients and opportunity to put themselves in a better position for the future. Real Estate, Options, Commodities, VUL's, Leveraged Debt, Fixed Income, Equities, etc, all have a place in someone's portfolio. No one strategy is a must. Stop acting like you guys are any more qualified to espouse your theories than a talking head like Cramer.