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Higher Returns with Less Risk
If you are a retiree, you were likely gripped with fear and anxiety when the market crumbled in 2008. I was! I knew that I could not live off the meager fraction of a percent that I received from “safe” Certificate of Deposits (CD). Over the long run, I knew I would need the higher return from stocks. But I could not afford to lose my retirement stake. I was frozen with indecision!
I am a retired engineer with a PhD in mathematics. So I thought maybe I could devise a way to lower the risk of the stock market but still make a livable return. I began searching the literature.
It turns out that a fellow named Markowitz had found a solution over 50 years ago. He made the amazing discovery that if you combined certain types of high risk assets (such as gold or commodities) with low risk assets (such as bonds and utilities), you could construct a portfolio that would give you a rate of return that exceeded that of the stock market but with substantially less risk. His work was so revolutionary that he was awarded the Nobel Prize! He called this strategy Modern Portfolio Theory (MPT).
So I implemented MPT in my own retirement accounts and since then, I have been able to sleep more soundly.
Step by Step Tutorials
I know that as a busy professional, you may have never had the time to learn the ins and outs of investing. You may have relied on your broker or other professionals for advice, which is fine. However, if you would like to learn more, this site provides a series of basic tutorials that attempt to explain in plain English what all the Wall Street jargon really means. The site also provides some more advanced article on how to construct a retirement portfolio to obtain more return with less risk and how to apply risk management techniques so that you can keep what you have earned. I hope you will find these informative and I welcome your feedback.
Announcing Sleep Soundly Portfolio book series!
If you don’t have time to read all the blog articles (there are hundreds) I have organized the most important information in a new Sleep Soundly Portfolio book series. The first book, called appropriately Supercharge Retirement Income, will be published in December, 2014 and will be followed quickly by a second book on how to “crash proof” your portfolio by using some unique risk management techniques.
The cover of the first book is shown below.
Announcing revolutionary new book on how to supercharge your retirement income
Protect Your Retirement Nest Egg
The next installment in the Sleep Soundly series has been published. It will provide risk management tools and guidance on when to exit the market before the bear takes too large a bit.
This book is a beginner’s guide to using technical analysis and options to protecting your retirement nest egg from the next bear attack. It is written for beginners but even seasoned investors may learn a few tricks, like how to implement a market crash protection insurance policy.
- Why crowd behavior is the reason technical analysis works
- How to recognize profitable chart patterns
- How to use Fibonacci retracements and Bollinger Bands
- The strategy behind two excellent market timing systems
- How to use options and ETFs to hedge your portfolio
- When volatility becomes your friend
- Using low cost options to protect against market crashes
Don’t get me wrong. My new books (or the articles on this site) are not the Holy Grail that will earn you gobs of money with no risk. After many years of searching, I now know that the Holy Grail does not exist. You have to take some risk to earn a return. I just wanted to show you how to make this risk as small as possible.
Legal Disclaimer: I am an engineer, not a registered investment adviser. Always consider the risk before you enter into any investment decision. See the legal disclaimer on the site for more caveats.
The bottom line is I believe you can become your own portfolio manager. This site and my new book will help you construct a portfolio that is uniquely suited to your needs. Life has been good to me and I enjoy teaching so I want to make these ideas accessible to all that would like to learn. The site is currently free (you just have to join by providing your email address) and the book will be priced less than $5. Explore the site, purchase my book when it becomes available–you have little to lose and hopefully much to gain. If you like the site, please tell your friends. If you like the book, please provide a review on Amazon.
Thanks and may all your investments be profitable!
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