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ROUGHLY 20 YEARS AGO, I left the world of corporate finance. I saw some of the ugly, high-fee undiversified products many of my friends owned—and how those differed from the ultra-low cost, disciplined investing at the companies where I had been a financial officer. I wanted to change things.
But after two decades, I’d say I’ve struck out. Still, there are lessons to be learned from my failures, as well as some encouraging changes occurring within the financial industry.
Comments
Jonathan. Thank you for being my therapist for all of these years. I’m still a work in progress, but you have helped me in so many ways. I am one of so many people who owe you so much.
Post: Four Thoughts
Link to comment from March 1, 2025
Back in the 08-09 financial crisis, every bone in my body told me to sell and I got more pain after they fell further after my October 2008 rebalance. I darn well may have panicked but Jonathan Clements talked me off the ledge.
Post: Taking It Personally
Link to comment from February 12, 2025
When I was in college a very long time ago, I was taught traditional economics which assumed we were all logical rational beings looking to maximize our economic utility. I bought it, hook, line, and sinker. How could I have been so dumb? My relationship with money is still a work-in-progress but is much better than it once was thanks to Jonathan.
Post: Mind Over Money
Link to comment from February 5, 2025
Wonderful wisdom from the master. I've learned that I cannot predict the future. Worse yet, I can't even explain the past. US stocks gained 21% in 2020 as COVID hit and horrible news was everywhere. I've yet to see a good explanation as to why.
Post: Sharing Lessons
Link to comment from December 14, 2024
Investing is simple but never easy. Part of the explanation is that tech has been hot and US is much more heavily in tech than international. Other events like overseas wars are a factor as well. Back in 2007, I was recommending a third of equities be in international and the typical response was "why so low - international will do much better." Today, I'm recommending the same and you can guess what the typical response is.
Post: Stuck at Home
Link to comment from November 23, 2024
Hi Jonathan. It's counter-intuitive but an annuity with a fixed COLA actually increases inflation risk since the duration of the payments is longer. I tell people that actuaries are really smart people and, if they won't take the inflation risk by offering CPI based annuities, I don't think my clients should either.
Post: Laying Down a Floor
Link to comment from September 14, 2024
I built my TIPS ladder nearly two years ago. I discovered it could provide over a 4% real withdraw rate for 30 years at the Bogleheads 2022 conference. I attest that the feeling of a guaranteed inflation adjusted cash flow from SS & the TIPS ladder creates such a calmness when markets plunge. My clients love it as well. I credit Bogleheads Kevin Esler and Bob Hinkley for creating tools anyone can use that makes it easy to construct ladders. They do this without any profit motive - they just want to help people.
Post: Laying Down a Floor
Link to comment from September 14, 2024
I’m also 65. I can say that this is one of the best articles I’ve ever read on any financial site. It really hits home to me. The subject, perspective, and writing style are brilliant! Thank you so much.
Post: When to Quit
Link to comment from February 15, 2023
I suspect your columns weren't very popular with the WSJ advertising sales force. I was writing the anynoomous column back then called "The Mole" for Money Magazine with advice echoing yours and was told how much the sales force hated me as it made it so much harder to sell advertisements for expensive and exciting financial products.
Post: News You Can’t Use
Link to comment from October 29, 2022
Jeff. Thank you for protecting the mole's identity back when I was writing that column once some smart people on Bogleheads.org discovered it was me!
Post: Striking Out
Link to comment from May 5, 2022