Hi Do, Here are Todd’s latest fun picks to take your financial skills to the next level... Happy Thanksgiving to all of my U.S. readers.
This is my favorite holiday.
I love the spirit of it - family gathering, great food, gratitude, and no other agenda.
In that spirit, I want to give thanks to all 45,000 of you that trust your inbox to my monthly efforts to advance your financial education.
I hope you find great value in each edition of "Todd's Picks."
So let's get right to it because I have three highly valuable resources for your holiday reading pleasure...
. Historical safe withdrawal rates vary widely during retirement from the 3% range to more than 10%. That three-fold difference in the amount you can safely spend from your retirement portfolio is the difference between a life of comfort and a life of cat food. So what is the cause? How can you estimate a reasonable safe withdrawal rate for your retirement? Bengen does a decent job of trying to sort the relevant factors into a workable model in this article. It's a major step forward from conventional financial planning's "4% Rule," which he fathered with his original research decades ago. However, it still completely misses the most important factor, as taught in my Expectancy Wealth Planning course. I first warned readers in late 2021 that the investment epoch changed, meaning a new investment strategy was required. After a year of witnessing the change, Howard Marks penned his "Sea Change" article in December 2022 stating basically the same thing that I said more than one year earlier. In this May 2023 update, Howard brings us up to speed on the investment significance of "Sea Change." (or epochal change, as I called it.) I share his latest article with you because I respect Howard and really like the beginning and end of the article. It's a valuable read. However, I disagree with Howard's investment conclusions in the middle of the article. Be forewarned that Oaktree manages credit risk portfolios, so Howard is conveniently "talking his book" with his investment conclusions. I recommend this investment solution instead because I think making outright bets like Howard recommends is a high-risk, fool's strategy in this unpredictable environment where extreme volatility, structural inflation, rising default risk, and unprecedented uncertainty are the governing rules of the game. My recommended strategy will win if Howard is right, and it will win if Howard is wrong - which I vastly prefer over his recommendation. With that said, most readers haven't even bought off on the idea that the game fundamentally changed at the end of 2021 despite all the evidence proving that fact since that date. For that reason, I provide Howard's latest to help prove a point that only becomes more obvious with every passing month. Again, it's filled with valuable insights worthy of your reading time. This is a fun article illustrating the critical difference between beginner and advanced advice. This issue is central to everything I share with you in this newsletter and everything I teach in my advanced Expectancy Wealth Planning master course. I call it "Level 1" versus "Level 2" financial advice, but it's fundamentally the same idea. You get the ordinary, beginner, Level 1 advice from all the big corporations (Fidelity, NerdWallet, SmartAsset, your financial advisor, etc.) because that's the watered down information that passes compliance and is simple enough for mass consumption. That information is useful when you're a beginner. However, eventually you need a source that teaches the advanced stuff. That's where my Expectancy Wealth Planning course comes in, and it's also why I focus this newsletter on more advanced financial topics. If you're ready to take your skills past the beginner stage, then you're in the right place.
Onward and upward!
Todd Tresidder
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This investment software solution includes two of Todd's top investment systems. You'll learn the smart, proven way to manage portfolio risk during epochal change. Once you understand it, you'll wonder why you tolerated the unmanaged risk in your old "buy and hold" investment strategy. -
My Expectancy Wealth Planning group coaching program shows you how to maximize the expected growth of your wealth in every market condition regardless of epochal change. My students were prospering during the good times, and they're still prospering during this adversity. Join this smart community of active wealth builders to secure your financial future.
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