Too Much Cash?
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How many 65 year-old clients have a 20 year investment window? Honestly. You screw them up from age 60 to 70 (or longer), they’re done. Cooked. Game over. Yes, your 35 year-old DCA client will be fine. So you take the 35 year olds, I’ll take the 60’s year-olds, and we’ll call it a day.
I think an account that is properly diversified is pretty much the same thing.
What's the difference?My plan is to continue making significant returns with low risk. How long they live is not relevant if I continually make more than they draw. I plan on doing it in such a way that where ever the market goes we win.
That's my financial plan.
All boats float when the tide comes in.I guess we disagree on what buy and hold means. Buying and holding the S&P 500 over the last decade obviously doesn’t make sense. But what advisor worth their salt doesn’t also recommend bond exposure to some extent. Even in the context of this debacle of a decade an untouched/unrebalanced position of an average balanced fund - ABALX - the client still earned 45%. Is that what they expected to earn? Of course not. But tack on the 90s to 00s or the 50s to the 40s or the 80s to the 70s, and tell me how consistent AA hasn’t performed well.
You aren’t planning for a 20 year life span for 60 year olds?
Doesn't matter if you destroy their portfolio in their sixties.
Maybe I should explain why I believe MPT advocates are like man-made global warming fanatics.
MPT is taking a snapshot of market analysis and saying that, “This is how things are”. The global warming fanatics are taking a small time period and saying, “look, the earth is getting hotter and it’s cause of you guys driving SUVs”.
Don’t believe everything. Question these theories.
I will go again once to the fact that MPT is predicated on a set of statistical analysis that is flawed.
[quote=Incredible Hulk] [quote=Gaddock] You know what else is interesting. I’m at home with a fever feeling like something you hate to step in trying to amuse myself, no really you guys are amusing, and we’ve added four or five pages to this post.
I've never looked at this BBS one time from my office. Imagine if you used the time you spend here and read or prospect or GOD FORBID find a high return to risk position outside of a MF![/quote]
Is that a challenge? If you want to compare gross revenue or appendages let me know.
Also, I believe it was you who made the "assumptions" comment earlier. Less than 20% of my revenue is generated from MFs. [/quote] Challenge? funny how you interpret things. No it wasn't it was just an observation. But if you want to know; August, 1 started year three. My gross was over $250k for year two. I'll do over $400 this year with 30 million AUM, that's my goal. As for the appendage, sorry but I'm not gay not that there is anything wrong with it, I just have no desire to see your wee wee.
[quote=Ron 14] Gaddock is the best, just ask him.
If Gaddock had a brain he would trade for himself and keep his great returns with no risk. [/quote] Ron, Your traded options for 7 years on the floor you say. You say you understand the model I'm using and I believe you. Most people don't get it no matter how many times and ways I explain it, brokers that is. You should know the model I use is not risk free. I'll toss you a little challenge. No matter how remote the black Swan is ... What is the risk? I did take one on the chin. I already told you why I don't nor do I take any of the positions I make for my clients. Kind of puzzling that you wont accept the reason since it's an admission of quite a weakness.No. Guys at banks are idiots. I would love to know how you go from Eddie J to owning your own shop where you do nothing and employees do everything. You must have lit it up at Jones!That’s crap Ron. We all know guys who work at banks are the best!
My plan doesn't require the client to live 20 years in order to realize good returns. I plan on them living to 95 or longer.You aren’t planning for a 20 year life span for 60 year olds?
[quote=Gaddock][quote=Ron 14] Gaddock is the best, just ask him.
If Gaddock had a brain he would trade for himself and keep his great returns with no risk. [/quote] Ron, Your traded options for 7 years on the floor you say. You say you understand the model I'm using and I believe you. Most people don't get it no matter how many times and ways I explain it, brokers that is. You should know the model I use is not risk free. I'll toss you a little challenge. No matter how remote the black Swan is ... What is the risk? I did take one on the chin. I already told you why I don't nor do I take any of the positions I make for my clients. [/quote] I know its not risk free I was just taking a shot because you changed your tag line. Also because I think what you do is comparing apples to oranges with what most of us do.It’s all about the almighty dollar Ron. The style may be different but the desired effect are in fact one and the same.
Does the tag line bother you?[quote=Moraen]That’s crap Ron. We all know guys who work at banks are the best!
No. Guys at banks are idiots.
I would love to know how you go from Eddie J to owning your own shop where you do nothing and employees do everything. You must have lit it up at Jones![/quote]
It’s called planning and ambition. And I never said I don’t do anything. I just do MORE than you do. Bank brokers are lazy, that’s why they are at banks.
It’s also called thinking outside of the box, saving, investing correctly… etc. The ability to adapt, to think and overcome.
The same reason you are at a bank is the same reason you follow MPT - you need people to prop you up.
If you want to know how I did it. It’s simple. Plan your exit for at least a year. Serve in the military and create lifelong bonds with people who will trust you with more than their money. Have a set of balls. Create a new solution to financial problems. Find people who agree with you, offer them a good deal and HIRE them. Plant seeds in your fellow brokers/advisors minds.
Basically, take a chance. Once again, more risk, more reward. Tell me how you went from being a Jones broker to a bank broker - weakness and the need for a financial safety net?
Oh so you mean a natural market that you have built up overtime who you sell your non-repeatable strategies to.
You should be trading these stocks for yourself also. You would make more money and keep it all. The reason you don't is because you rather charge someone to use their money to make your bets. Create a "new" solution to financial problems ? Give me a f**king break.[quote=Ron 14] Oh so you mean a natural market that you have built up overtime who you sell your non-repeatable strategies to.
You should be trading these stocks for yourself also. You would make more money and keep it all. The reason you don’t is because you rather charge someone to use their money to make your bets.
Create a “new” solution to financial problems ? Give me a f**king break. [/quote]
Deleted - it was a low blow.
Sorry that I have a natural market - that I did something worthwhile before coming to this business.
Talk to people about what they want and provide it. Just because you can’t provide it at a bank, don’t think you know anything about who I am or what I do. Or what I can do.
My strategies are incredibly repeatable. Once again, I’m not making people ridiculous returns, but I’m not losing them money either.
Somebody mentioned a black swan. MPT is the ultimate black swan. It’s failed 12 times. That’s way to much to be a simple outlier.
Go back to your scared bank and see how many referrals you can get from your tellers.