Avoid Target-Date Funds

July 16, 2021

What is a Target-Date Fund? According to investopedia.com target-date funds are mutual funds or exchange-traded funds (ETFs) structured to grow assets in a way that is optimized for a specific time frame. The structuring of these funds addresses an investor’s capital needs at some future date—hence, the name “target date.” Most often, investors will use a target-date fund to apply to their onset of retirement.


Target-Date Funds have grown dramatically over the last few decades. They are intended to be the solution for those that want to abdicate their investment decision responsibility.  The plan sponsor also reduces fiduciary responsibility by providing a default option for the employee.  The concept sounds reasonable. The typical young investor (30 years old) will have a target date 35 years out. That individual is assumed to have a high-risk tolerance with many years ahead to earn the higher average risk premium in stocks. Such a fund will begin heavily over weighted in stocks and systematically reduce the stock weight over time into bonds and cash.  So, what are the problems?

  • Expenses: 
  • Look out for high expense ratios.
  • Look out for double dipping. Target date fund expense ratio and the expense ratio of the underlying funds they invest in. 
  • Percent in cash: you are paying high expenses on a component that you can do yourself at no cost. This gets systematically worse as you move along toward the target date.
  • Note difference between “to” and “through” the target date. “To” is to cash out at the target date and “through” is to continue into retirement. The latter maintains more equities in the portfolio.
  • Limited investment choices by your plan sponsor (typically a single company). Denying you the opportunity to shop for a lower fee target date fund provider or better investment performing fund alternatives outside the fund family.
  • The portfolio manager might take too much or too little risk as your proxy, including market-timing decisions. Furthermore, the manager’s incentives may not coincide with yours.
  • The manager is unaware of the correlation of your other investments outside the target date fund.

Example 1: Vanguard Target Retirement fund 2025 (VTTVX) invests in four of its own index funds that cover the Total U.S. Stock Market, Total International Stock Market, Total US Bond Market and Total International Bond Market. The expense ratio is 0.15% and the Morningstar ranking is four stars. Morningstar looks into the composition of these sub portfolios and reports the following asset allocation for the entire target fund.

Example 2: The Putnam RetirementReady 2025 A (PRROX) indicates on its website that it holds six of its actively managed funds and its money market fund. The expense ratio is 0.98% and the Morningstar ranking is two stars. Morningstar reports its overall asset allocation as: 

While the Putnam website indicates 4.81% in the money market fund, cash held in the other six funds brings the total to 20.98%. Since the fund expense ratio is 0.98% and cash earns near zero at this time, means investors are guaranteed to lose about 1% on 21% of this target fund. There is also substantial managerial risk in the remaining actively managed stock and bond strategies.

Example 3: The PIMCO RealPath 2025 Fund class C (PENWX) indicates on its website that the sub-indexes represent stocks, bonds, TIPs, commodities and real estate securities.  The expense ratio is 1.87% and the Morningstar ranking is one star. Morningstar reports its overall asset allocation as: 

Note the large % Short and % Long positions in Cash and Bonds. That means a lot of leverage is being employed. Leverage is effectively borrowing money to invest in more assets than the fund has capital. The sum of the long position percentages is 291.06%. That means a $100 million-dollar fund is purchasing the equivalent of $291.06 million in assets with an additional $191.06 million in borrowed funds or the equivalent exposure with derivatives. This fund as well as the other examples above were chosen to have the same nine years to the target retirement date. This is when risk is supposed to be winding down. Although leveraging very low risk assets might seem okay relative to no leverage on a high-risk asset, leverage has a potential large downside in a liquidity crisis (i.e., forced selling to meet margin calls). This happened big time in the Fall of 2008. 

Besides the risk of managing the leverage within the fund, you want to know how this leverage affects your overall wealth portfolio’s leverage. Whether the leverage is obtained through direct borrowing or derivatives, it is effectively a short bond position. You need to know the maturity and duration (bond risk measure of its sensitivity to interest rate changes) of the position. Adding up all the long and short positions across all your investments is the only way to measure your total wealth portfolio net exposure. The process of aggregation applies to all the risk dimensions of your wealth portfolio. For example, the overall percentage of cash you hold will be decreased by the short (borrowing) positions and will be increased by the long (buy) positions in the mutual funds or Exchange Traded Funds (ETFs) you own. Similarly, the interest rate sensitivity of your longer-term bond investments is being reduced by your 30-year fixed rate mortgage (borrowing) on your home. Keeping track of all this information seems daunting, but modern technology can do all this for you in the background.

The important point of the three examples above is to show that all target funds are not alike. They each have their own costs and investment risks that are not likely to fit your unique personal goals. The only time I was forced to recommend including a target fund in a family member’s 401K was to allocate 100% of that 401K to the Vanguard Target Retirement 2050 Fund. All other funds available to him in the plan were poor choices (high expense ratios, active management with weak performance and elusive risk exposures). Being young, the cash allocation in Vanguard’s 2050 is small; it’s composed of all index funds and has a low expense ratio without double dipping. Furthermore, it was a small part of his wealth relative to his taxable account where all the remaining or offsetting exposures can be obtained in other accounts. This individual will rollover that 401K to an IRA when next changing jobs and then have complete control to achieve a superior portfolio strategy.

Good News: You don’t need target date funds to achieve a dynamic time dependent risk strategy. You can create your own target date wealth strategy with full knowledge of all the assets you own at a lower cost.

  , , , ,
  DIY Wealth Tips, Investing, Strategies, Wealth Management
Author: Stanley Kon

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The Annuity Decision: Buy vs Build?

July 2, 2021

Most retirees are in the de-cumulation phase of their life cycle. From their wealth portfolio (balance sheet), they might have a difficult time determining a risk-free monthly income stream for the remainder of their lifetime. This is not surprising, as lifetimes are uncertain, and retirees are correctly worried about outliving their wealth portfolio. Whenever there is a risk that a person wants to eliminate, there is usually an insurance contract they can purchase. But at what price? Or when is the cost of insurance high enough that it is preferable to self-insure. That is, insure with the purchase of an annuity or self-insure by building a do-it-yourself (DIY) annuity. 

The decision should include an analysis of the three components of one’s remaining lifetime probability distribution. First is to evaluate the risk-neutral value of the insurance contract from the perspective of the purchaser to compare with the insurance company offer price. An insurance company will take the upfront price you pay for an annuity and invest it to meet your promised monthly income stream. Their profit includes the difference in what their investment portfolio earns and the payout to you plus the guarantee fees of .95% to 1.75% per year, sales commissions, and surrender charges you pay. Second is the value of insurance for outliving your actuarial expected life and the third is dying before you reach your actuarial expected life.

annuity_decsion

It is important to realize that at any point in time, an annuity salesperson can’t offer you more than is available from their investments in the current bond market, but they can charge you a lot for packaging a lifetime annuity. All of this is buried in the quoted price of the contract. It is useful to know the annuity purchaser’s expected internal rate of return to compare with current bond market rates.

In my book, Do-It-Yourself Wealth Management, I use the example of a 65-year-old male interested in purchasing a lifetime annuity. Online quotes all exceeded $500,000 for receiving $2,500 per month for his remaining life. Calculating the expected internal rate of return on the annuity purchase requires an expected maturity. From an actuarial life table, a 65-year-old male is expected to live another 17.84 years. For the $512,287 quote I received, I solved for its 0.61% expected internal rate of return. At that time (October 17, 2019), a Treasury bond with a duration of 18 years had a 2% yield. The present value of $2,500 per month with a 2% discount rate for 18 years is $453,172. In other words, we can create an 18-year $2,500 per month annuity for $453,172 and save $59,115. In my book, the implementation of this DIY annuity is illustrated with three Treasury funds designed to have no default risk and be immunized from interest rate risk.

Paying $59,115 now for insurance against living longer than an 18-year expected remaining life to receive $2,500 per month seems expensive. The $59,115 savings is nearly 2 years of monthly payments past the 18 years plus income on it in the meantime will get closer to 3 years of additional payments. The most obvious reason for the annuity being expensive is the current low interest rate environment relative to all the fees imbedded in the contract. Annuity contracts were a hot commodity in the 1980s when Treasury rates were above 10%, Then the drag on investment performance from the fee structure was less noticeable. You might think that the industry should be reducing fees to accommodate the lower interest rate environment and sell more contracts. Instead, they may be better off profiting more from those consumers that are not knowledgeable enough to distinguish between the elements of the contract.

Maybe you are thinking I am not giving enough value to the downside risk of living longer than expected in a lifetime annuity? When it comes to risk management, I will always advocate for eliminating uncompensated risk. However, personal attributes, investment objectives and risk tolerance must be incorporated into decision-making when there is a tradeoff between risk and expected return.

For example, if you expect to live longer than the average of your cohort, that increases your view of the expected internal rate of return and expected insurance contract value.  For an extreme example, if you are certain (100% probability) to live 20 years past your forecasted life (103 versus 83), then the present value of $2,500 per month for 18 years + 20 years = 38 years is $798,056. That would make the insurance piece cheap from your perspective. That is, more valuable to you than what the insurance company is charging. Although this is an extreme example of living 38 more years for certain, it makes the point that your personal attribute of health assessment relative to your cohort and your degree of risk-aversion will affect your subjective valuation of the lifetime guarantee being offered.

The other part of the risk-expected return spectrum that I believe does not get enough attention in annuity valuation is the risk of death prior to one’s expected lifetime. A death 2 months after paying $512,287 for a $2,500 per month lifetime annuity is a substantial downside risk for a spouse and other potential beneficiaries. The value and securities contained within a DIY annuity, however, does not disappear if you die before it matures. Instead, it remains intact and can be exchanged or altered by the beneficiaries. 

In summary, the decision of whether to buy an annuity to insure against outliving your investment income or build a DYI annuity as self-insurance depends on an evaluation of the cost structure of the annuity, the risk-neutral valuation of the contract, the component value of insuring against living longer than actuarially predicted, the downside risk of death earlier than predicted and subjective personal attributes including health outlook and degree of risk-aversion.

The build decision is clearly superior for the risk-neutral valuation and the downside risk of death before expected part of the remaining lifetime distribution. While personal attributes will determine the decision for living longer than expected part of the remaining lifetime distribution, there is a strong case for the build decision here as well. You can structure a DIY annuity for any expected lifetime to hedge against living longer without paying all the embedded insurance costs. The savings from not buying the insurance contract can be used to extend the DIY annuity several years. It is also reasonable for a long-term DIY annuity to use investment grade corporate and mortgage-backed securities with its higher expected yield at very low incremental risk to extend your annuity. Essentially, set a personal comfort level (e.g., 5, 10, or 20 years) more than your actuarial expected life to hedge against living too long in your building of a DIY annuity.

BTW, Ripsaw® Wealth Tools considers annuity, pension and social security contracts as part of your bond portfolio for wealth management. It also provides calculations of risk-neutral market values and risk dimensions. 

  , , ,
  DIY, DIY Wealth Tips, Strategies, Wealth Management
Author: Stanley Kon

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Rollover a company tax-deferred plan at every opportunity

June 15, 2021

You should rollover a company tax-deferred plan (401K, 403b, 457b, etc.) to a traditional IRA at every opportunity.

A key to wealth management is often making sure you are using the best investment vehicles available to you. You should rollover a company tax-deferred plan (401K, 403b, 457b, etc.) to a traditional IRA at every opportunity. The sad thing is that many tax-deferred plans restrict the available funds to those with high expense ratios as well as the number and type of investments. You can minimize this negative effect by investment choices within and outside your tax-deferred plans to improve your overall wealth management program. In order to maximize flexibility, anytime you leave a job with a company tax-deferred plan, roll it over to an Iindividual Retirement Account (IRA)Do not roll it over to your new employer’s plan with another set of restrictions. Since it is your money, it might surprise you how difficult the plan you are transferring money from makes the process. They don’t care about you. They just want to keep their management fees. Take action to avoid the negative future performance.

  , , ,
  DIY Wealth Tips, Investing, Wealth
Author: Stanley Kon

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Compelling Case for Ripsaw® Wealth Tools

June 1, 2021

In our now decade-long low interest rate environment, current expected returns on asset classes are relatively low compared to prior decades when advisor fees and high expense ratio mutual funds were established.  It may not have felt too uncomfortable paying a 1% advisor fee when yields on US Treasuries were over 10% and stock market expected returns were at 20+%. However, the current 90-day T-bill rate is 0.01% and the 5-year Treasury rate is only 0.88%. After an advisory fee of 1%, you are expected to lose money on that portion of your portfolio yielding less than 1% and even worse when you include the fund expense ratio. Why do want to pay someone to manage your low-risk assets? 

The expected return on the stock market is currently around 8.35% as volatility is near its long-term average. In the table below, expected returns for portfolios with varying stock and bond compositions are provided. All bonds at 1.6% and all stocks at 8.35% with combinations at 40%/60% and 60%/40% stocks/bonds in between. As one would expect, the higher the stock percentage, the higher the expected return and risk. The next line takes a little off for using low-cost exchange traded funds for the stock and bond portfolio as a do-it-yourself (DIY) investor. 

*Total IG bond market index fund: BND ETF 1.6% YTM and .035% expense ratio, total stock market index fund 8.35% expected return: VTI ETF .03% expense ratio.

**Average annual expense ratio of active funds is 0.66% (Source: Annual Morningstar Study June 2020). Average annual financial advisor fee for $1,000,000 AUM is 1.02% in 2020-2021 (Source: AdvisoryHQ). July 27, 2021: 3-Month T-Bill = .01%, 5YR Treasury = 0.88%, 10YR Treasury = 1.63%, 30YR Treasury = 2.30%. Stock market risk premium = 8.34% (Table 5.4 in Bodie, Kane and Marcus, Investments, 12th Edition.

What is your incentive to become a DIY investor/wealth manager? The average advisor fee plus the average actively managed fund expense ratio is 1.68%. Subtracting that from each of the stock/bond portfolio strategy expected returns reduces your net return substantially. In fact, the 100% bond portfolio expected return is -.08%. It is expected to lose money after all expenses, but not before them. That is because the total expenses are 105% of the expected return. Even with the 100% stock portfolio, the total expenses are 20.12% of its expected return. That means a lot less net expected return for the same risk. Gross! 

What is the effect of these expenses on your expected wealth accumulation over time? Here we use a simple example of a 30-year investment horizon to retirement for a 35-year-old with $100,000 plus the commitment to contribute an additional $15,000 per year for the next 30 years. The index fund strategies, net of the fixed low-cost Ripsaw® Wealth Tools subscription service for implementation, has a considerable positive accumulation for all portfolio strategies, including the 100% bond portfolio. Next, we can see the huge drag on wealth accumulation with advisory fees and active expense ratios. Note that this does not even include the strong evidence that the vast majority of active managers underperform their benchmarks with poor investment performance (unnecessary risk to you). 

We can express this drag two ways. Either way it is huge! First, the percentage loss of wealth accumulation from excess expenses ranges from -25.21% to -32.16%. Alternatively, the wealth accumulation gain from moving to DIY wealth management with Ripsaw® Wealth Tools has an improvement that ranges from 33.7% to 47.4%. In the 100% stock case, that is going from $2,162,590 to $3,187,621 or over a million in gain or savings! This result is both from the sum of annual expense savings and the opportunity to reinvest those savings. 

The bulk of the wealth management universe has been able to charge high fees because of their information and technology advantage over their clients. Do-It-Yourself (DIY) investors have lacked the data access and analytics for efficient portfolio management. Ripsaw® Wealth Tools is the first to provide an independent, disciplined wealth management process that combines auto-updated account information, access to risk dimension data and financial analytics in a low-cost subscription service for portfolio construction, monitoring and revision decisions. NOT a percentage of assets under management. The benefits of our approach are enormous in terms of wealth accumulation and the satisfaction of taking control of your financial life.

Financial security, like health security, is a major stress reliever. Ripsaw® Wealth Tools provides flexible custom modeling for the low price of a Netflix subscription. Isn’t your financial security at least as important as a Netflix subscription?

  , , , , ,
  DIY, Investing, Ripsaw, Uncategorized, Wealth
Author: Stanley Kon

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Reduce the cost of implementing your financial plan

May 25, 2021

This content is for informational purposes only, you should not construe any such information or other materials as legal, tax, investment, financial, or other advice of any kind.

This content is for informational purposes only, you should not construe any such information or other materials as legal, tax, investment, financial, or other advice of any kind. 

One of the axioms of rational choice is that, holding everything else constant, individuals prefer more wealth to less. Therefore, once you have a portfolio strategy selected, implementing it at the lowest cost will make you better off.

Never purchase a fund with a load (sales) charge. The load is payment to a middle person (i.e., broker) for helping you pick a good fund. What incentive does the broker have to act in your best interest when their compensation increases with the sales charge? Front-end load charges are typically in the range of 3%-8.5%. That means you have to make up this charge just to break-even. This is an unnecessary expense when there are equivalent funds in terms of investment exposures and performance which have no load. Beware of backend loads that disguise the charge by having you pay the same load over time and in an exit fee. 

Do you really want to pay marketing, advertising and distribution costs (12b-1 fees) for the fund to get other clients? I don’t think so!

The easiest way to screen for cost is the fund’s expense ratio. The industry average is approximately 1.5%. The compounding effect over many years is substantial. When interest rates were high (over 8%), investors didn’t pay much attention to an expense ratio of 1%. Now that the 10-year Treasury rate is near 2%, an expense ratio of 1% can reduce total return by 50% on an intermediate government bond fund. Have you noticed that until recently money market returns to investors have been near zero for years! That is because the yields on most of the assets in the fund are below the expense ratio, but they can’t charge the full expenses without breaking the buck (constant $1.00 price).

It is no surprise that index funds have had the largest investor growth rate in recent years. Their expense ratios range from 0.02% to 0.25%. The low expenses are available because the cost of active management is eliminated. One might think that active management leads to more than enough additional value to offset the higher expenses. But many empirical studies show that active managers as a whole underperform index funds and very very few have consistent superior performance over time to justify their fees. High performing managers tend to leave the fund to become hedge fund managers with higher compensation for their skills. That leaves investors with the risk of management turnover. Even worse, is the extreme under performance that some active managers generate. This occurs because their incentives are to take big bets for better compensation. This swinging for the fences is not in your best interest, but in theirs. Index funds eliminate managerial risk. Essentially, with index funds, you get the return for the exposures you select at minimal cost. No more. No less. You are in control! What we will provide in this book is how to select the exposures that are right for you.

Reduce the impact of fees on your wealth accumulation.

Don’t let high costs eat away your returns! You can use Ripsaw‘s investment screener to keep fees low, see your fees clearly, and pay a low subscription instead of a % of your money. High fees diminish wealth accumulation significantly. That is why we made Ripsaw’s subscription low, affordable, and with tools to reduce fees over your lifetime.

  , , , ,
  DIY Wealth Tips, Investing, Ripsaw, Uncategorized
Author: Stanley Kon

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Tax Minimization Strategies

May 20, 2021

This content is for informational purposes only, you should not construe any such information or other materials as legal, tax, investment, financial, or other advice of any kind. 

After an overall asset allocation is determined, minimize the impact of taxation on your investments by locating more tax-efficient holdings (low dividend, high capital gain, tax exempt and index funds) in your taxable accounts and least tax-efficient (high dividend and high interest bearing) holdings in your tax-deferred accounts. For example, if your overall asset allocation were 50% bonds and 50% stock, you would consider having your IRA hold all the bonds and your taxable brokerage account hold all the stocks. Since most people do not have equal amounts in each account and all stock strategies are not equivalent, it is not that easy. You will see the principle will be useful in efficiently allocating across investment vehicles.

Rebalancing your portfolio can also result in tax consequences. If a trade would result in a capital gain, executing it in your tax-deferred account will not have an immediate tax event. Taking losses in your taxable account will create immediate tax deductions. Paying attention to where you trade will result in substantial tax savings over the life of your investment portfolio.

Maximize your tax-deferred retirement contributions

The goal of wealth management is to achieve a preferred standard of living through time. We invest in education to generate higher future earnings (a better life for you and your family). We promise some of our future earnings in a home mortgage so we can have a higher standard of living today (smoothing consumption over time). Saving for retirement is giving up some spending today to supplement a lifestyle after we retire, and our labor income is unavailable. 

Retirement income can be generated from multiple sources. Liquidating real assets (i.e., selling, downsizing, or taking equity out of a home), principal and income from after-tax investments and pre-tax retirement plans (401K, 403b, IRA, etc.). These qualified pre-tax retirement plans have a unique set of incentives. If there were a set of commandments for investing, maximizing qualified tax-deferred retirement contributions would be number one.  Some of the reasons are:

  • Instantaneous high rate of return: If your 401K maximum contribution is $15,000 and you are in a 35% marginal federal, state and local tax bracket, you save $5,250 in taxes. You may also think of investing this $5,250 tax saving in a taxable account. Now you have instantly turned $15,000 into $20,250 of investment wealth in two accounts.
  • Future tax avoidance options: Note that you will owe ordinary income taxes on your 401K withdrawals in retirement, but you can strategically take withdrawals in the future. Timing options include managing to a lower tax bracket via drawing from multiple after-tax sources at the same time, have offsetting losses, tax credits, borrowing from the account, direct charitable contributions and a bequest. In the meantime, earnings in the fund are accumulating tax-free.  The taxable investment ($5,250), however, will only have tax liability on interest, dividends and capital gains/losses as they realized.

I should note that I am not a fan of Roth plans. It isn’t a no-brainer. One might think it makes sense when you are in a low tax bracket and the immediate tax savings of a tax-deferred plan is negligible. The benefit is that many years later the accumulation will be tax free. That makes some sense, especially for disciplined savings.  However, if you are in that low a tax bracket, taxes on dividends and capital gains will be initially negligible. Why deal with the constraint of waiting until retirement to access the accumulation when it will be more likely that you will need the money sooner for a down payment on a house, education expenses or a business venture. The latter two motivations will add human capital and increase income faster. In this case, accumulating wealth sooner and having a bigger tax problem is a good thing! In a high tax bracket, a traditional tax-deferred plan with the immediate tax saving generally dominates the Roth alternatives. Paying the tax now and investing in a Roth plan is forgoing both the current tax savings and future tax options of managing to lower rates or never paying the tax at all. Examples of never paying the income tax include charitable contributions directly out of the plan that also count toward your required minimum distribution; using the plan to pay tax-deductible medical expenses when they are likely to be high; outliving your plan to be rolled over into your heirs plan and when the investment ends up worth less in the future. This last possibility is more likely for those converting to a Roth near or in retirement. Paying taxes in advance on a gain at the ordinary rate really hurts when the reinvestment ends up in a loss. Like all options, the tax option is worth more alive than dead!

  • Employer matching programs: Many employers encourage employee contributions with matching or profit-sharing programs. Contributing at least enough to capture an employer matching contribution is the ultimate no brainer! During my time at the University of Michigan, 5% of salary contributions by a professor to a 403b plan were rewarded with another 10% contribution from the university. That is an instantaneous 200% return with no risk! There is no other investment opportunity I know of that can beat that! As department chairman, I made it clear to new faculty (fresh Ph.D.) that not taking this investment opportunity because of a cash flow excuse would result in removal from the classroom (unfit to teach finance). Find a way to use the financial markets to solve your cash flow problem (i.e., short-term borrowing to finance the investment).
  • Supplementary plans:  Use available supplementary plans to reach the maximum dollar contribution allowable. 
  • Disciplined savings:  Regular contributions to your tax-deferred retirement plan is a savings commitment that requires little maintenance and will typically be sufficient until your labor income reaches a level for additional savings in taxable investment vehicles.
  • Asset protection in personal bankruptcy: Qualified retirement plans are generally exempt from creditors. This is very important for sole proprietors and entrepreneurs. It is also a form of downside risk management in our litigious society.
  • Minimize market-timing risk:  An employee’s 401k payments are typically made out of regular paychecks. This avoids the lump-sum risk of having to move a large percent of your wealth from cash to risky assets just prior to a major downturn or out of the market prior to a large upturn in the market. 
  , ,
  DIY Wealth Tips, Investing
Author: Stanley Kon

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Ripsaw News: We have an iOS APP!

May 19, 2021

Mange your wealth from anywhere!

Ripsaw® is pleased to announce that we now have an app on the Apple App Store! 

Monitor your wealth from anywhere! Never miss an opportunity with the power of Ripsaw® bringing the full portfolio monitoring toolset to your iPhone®. If dashboard indicators show a need to rebalance your portfolio, revise with the full featured Ripsaw® Wealth Tools on your computer or iPad®.

Download on the App Store


Ripsaw® on your iPhone® has:
Balance Sheet
Full featured Holdings and drill in details about investments
Wealth Portfolio Dashboard
Crucial Market Data
1-Day Return Breakdown Comparison
Profile, settings, deviation indicator thresholds

Ripsaw® on iPad® is fully functional Ripsaw Wealth Tools!
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Want to manage your own wealth? We have an app for that!
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  Investing, Ripsaw, Uncategorized, Wealth
Author: user

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Welcome to the DIY Wealth Blog presented by Ripsaw®


Welcome to the DIY Wealth Blog presented by Ripsaw®

March 29, 2021
Stanley J. Kon, our Co-Founder and Chairman has recently written a book that thoroughly explains his approach to wealth management. This DIY finance guide is a great companion to Ripsaw® Wealth Tools! This is the companion blog to Ripsaw® Wealth Tools and Do-It-Yourself Wealth Management.

The task of personal and family wealth management seems like it requires so many interrelated complex decisions with multiple risk dimensions that most people feel overwhelmed. However, we are all our own wealth managers, regardless of who you pay for advice and trade execution. Given the potential conflicts of interest, managerial risk and high fees, it is not difficult to do better for yourself than what most professionals can do for you. Even if you choose to pay a professional, it is still your responsibility to monitor them concerning suitable strategies and performance net of fees. In this book, the author (Stanley J. Kon, PhD) with long careers as a professor of finance and in the practice of institutional investment management, will take you through a disciplined “Do-It-Yourself” investment process for wealth portfolio construction, monitoring and revision involving many accounts and many investments with overlapping risk dimensions. This is the companion blog to Do-It-Yourself Wealth Management and Ripsaw® Wealth Tools

  
  DIY, Ripsaw, Wealth
Author: Stanley Kon

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