Gary Allen on Business, Sunday, Janaury 24, 2016: Podcast Now Available

Cartoon business people escape from stock market arrow

Stock Market Jitters, A Crude Awakening…

A large drop in oil prices has been fueling lower prices in the stock market recently. A strong US dollar has been one of the linchpins of this newfangled relationship. A stronger dollar is tough on US exporters and that strong dollar is a drag on oil prices as well. However, short-term market driven volatility is no reason to upset anyone’s well laid plans.

On the show this week, we spend time discussing two persistent myths about main street investors; the panic syndrome and market capitulation. It turns out that history shows that the average person does not panic and market bottoms usually happen with a whimper.

Later in the program, I go through eight points about managing money that our firm follows through good times and bad. It provides a road map for anyone to follow. And finally, I discuss the cost of bad investment advice.

There certainly are many things to be concerned about, but a disciplined investor understands they cannot control nor predict world events. These events make life interesting but are simply noise that can distract us from our purpose. Hopefully, you can ignore the bad advice that is driven by greed, fear and current events and develop a long-term plan that works for you in good times and bad.

I hope you enjoy the program this week. – Gary

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Free Report Available – 2015 Market and Economy in Review

2015 yellow road sign2015 is in the books! Like many investment firms, we prepare a report to summarize what happened over the past year. In this report, we take a look around the globe at financial markets and world economies. This report is a simple, handy guide that gives you a summary of what has happened over the previous twelve months.

Also, you will find a short article about risk. The article will help you understand what risks are worth taking and how to get help if you need it. We hope you enjoy this year-end report.

To access the report, please click on the link below.

Prudent_2015 Year in Review

Good luck in 2016. We hope you have a healthy, prosperous and safe year.- Gary

GARY ALLEN ON BUSINESS

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Gary Allen on Business, Sunday, January 17, 2016 – Podcast Now Available

Stock Market Jitters… Stock Market Predictions 2016… What To Do?

Bear Market

The New Year has not been kind to financial markets. In the back of people’s minds I sense fear of another meltdown like 2007-2009. Unfortunately, no has that answer until after the fact. That is why it is so important to make sure your investments are aligned to your individual circumstances. Depending on someone to time the market or to pick individual securities only adds to the level of risk you face. 

On the program this week, I cover the market downturn as well as the abysmal record of Wall Street and other financial professionals (United Kingdom and Australia) for predicting market returns. 

Since it is the beginning of the year, I do provide you with a list of 10 forecasts that I feel very comfortable about. These forecasts provide you with some of the reasons why it is so hard for market prognosticators to provide any value.

Finally in the last segment, I remind people to focus on what they can control and not to worry or focus on what you cannot. In this segment, I give you a sneak peek at a project we have been working on for a while. We feel that Wall Street and its beat the market mantra has led so many people down the wrong path. Hopefully, soon, we can let you know about a completely different path that should provide investors a better chance at success.

I hope you enjoy the program this week. – Gary

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Gary Allen on Business, Sunday, January 10, 2016 – Podcast Now Available

I wonder if this will effect our social security
Financial Planning is a Series of Trade offs

Financial planning is a complicated subject. There are so many trade offs and variables involved it can be overwhelming for many folks. Recently, long-time financial columnist Jonathan Clements penned an article covering 18 simple steps to creating your own financial plan.

Of course anything with 18 simple steps does not sound so simple, but it was a valiant attempt at back of the napkin financial planning. The reality is life and financial planning involve a series of interconnected trade offs without a concrete answer. My humble advice would be to gather relevant information on the subject and make the best informed decision you can. Life is not perfect and neither are many of the choices we all face.

On the program I follow along with Jonathan’s 18 steps and give my two cents along the way. Also in the program I mention two videos and articles about retirement planning that do an excellent job of providing clear and concise information on the subject. You can find the videos on two of my recent blog posts. You will find links to the short videos as well as links to a couple of robust papers on the subjects. Hopefully you will find them useful and informative.

I hope you enjoy the program this week. Hope you have a great week! – Gary

Here is this week’s podcast of my show that originally was broadcast on Sunday, January 10, 2016 on KNBR.

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The information provided on this website is for information and educational purposes only. It is not intended to be investment, legal or tax advice of any kind. Please consult with your investment, legal or tax expert on all matters.

 

 

Monster Income… How Much Income Do I Need In Retirement?

Little monster and a dollar sign
Monster Income!

This is another one of the big questions related to retirement. How do you know what to save or how to invest if you don’t know what your income needs are?

It is a simple question on the surface, but to get the answer it can become complicated very fast. There are many resources available but that is part of the problem. With so much clutter and noise, it is hard to find something that provides a basic understanding of the problem at hand.

marlena_leeThanks to Marlena Lee of Dimensional Fund Advisors for producing this excellent video. It provides a clear and concise overview of determining how much income you need in retirement. Here is a little more information about Marlena. As a vice president on Dimensional’s Research team, Marlena conducts research in asset pricing and macroeconomics. She shares the results through published research and in presentations to institutions and financial advisors who work with Dimensional. Marlena is also a member of the Investment Policy Committee. Prior to joining Dimensional, Marlena gained experience explaining complex financial concepts as a teaching assistant for several professors, including Professor Eugene Fama. She has also worked as an economic consultant on antitrust litigation cases and as a research assistant at the Manhattan Institute of Policy Research.

Marlena earned her PhD in finance from the University of Chicago Booth School of Business. She also holds an MBA from the Booth School of Business and an MS in agricultural and resource economics and a BS in managerial economics from the University of California, Davis.

Here is a link to Marlena’s video. All you have to do is click on the link: https://youtu.be/6oQBSqRQSGk

If you are intrigued by Marlena’s video, you may want to read her more detailed paper on the subject. Retirement_Income_Equation

Planning for retirement is complicated. Hopefully, this video and paper will help you understand one of the basic questions, “How Much Income Do I Need In Retirement?”

Have any questions or need some help?

You can always contact me at my business email: gallen@prudentllc.com

Hope you find this information useful.

How Much Do I Need To Save For Retirement?

Saving for RetirementOne of the big questions in life is how much do I need to save for retirement? There is so much information out there on the subject that it can be overwhelming. What I want to do is provide you with a simple, clear and concise overview of a very complicated question.

Massi De SantisFortunately, my friend Massi De Santis created a video a couple of years ago that does a great job. Massi is a Vice-President with Dimensional Fund Advisors. Massi holds a PhD in economics from the University of California, Davis. He was an assistant professor at Dartmouth College, where he taught finance and macroeconomics classes, and conducted research at the frontier of finance and business cycles. His research has direct implications in valuation and risk measurement, and has been published in journals, including The American Economic Review, The BEJournal of Macroeconomics, andStudies in Nonlinear Dynamics and Econometrics. He has lectured and presented research at a number of universities, central banks, and professional associations. He has also testified as an expert witness before the American Arbitration Association on matters relating to the valuation of business damages and the risk of interest rate swaps.

Here is a link to Massi’s short but insightful  video on the subject.

https://cdnapisec.kaltura.com/index.php/extwidget/preview/partner_id/1581781/uiconf_id/20490561/entry_id/0_aaitgpl4/embed/dynamic

Massi wrote an accompanying paper with his colleague, Marlena Lee. If you want more detail on the subject, here is a copy of their paper: how_much_should_i_save

Planning for retirement is complicated. Hopefully, this video and paper will help you understand one of the basic questions, “How Much Do I Need To Save For Retirement?”

Have any questions or need some help?

You can always contact me at my business email: gallen@prudentllc.com

Hope you find this information useful.

 

 

 

 

 

 

http://us.dimensional.com/media/31539/how_much_should_i_save.pdf

http://us.dimensional.com/media/31539/how_much_should_i_save.pdf

Gary Allen on Business, Sunday, January 3, 2016 – Podcast Now Available

The Case Against Wall Street

bveresConventional wisdom says that Wall Street helped build America. But what if the role of Wall Street has changed in recent times. That is the argument that financial columnist Bob Veres makes in a recent article entitled, The Case Against Wall Street.

In this excellently written article, Bob takes on the role of a prosecutor trying to convince an imaginary jury that Wall Street has become a drag on the American economy and consumers. Bob argues that Wall Street has been artificially inter positioning itself between those who have capital and those who need it and charging ever increasing and unnecessary tolls along the way.

Bob provides a convincing argument that Wall Street has been able to maintain this “cartel” by unduly influencing regulators and lawmakers through its outsize political contributions and a relationship that has become too cozy with the regulators.

On the program this week, I start the program with a quick summary of 2015 and then move into a review and comments about Bob’s article.

Here is the show from this week. I hope you enjoy it.

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number 2016, and some wishes for the new year

Thank you to Justin Siddhu, my great producer for an awesome year. And of course, thank you to all of my listeners over the years who make it all worthwhile. I hope that all of you enjoy a healthy and prosperous 2016!

 

 

 

 

 

 

The Case Against Wall Street

bveresFinancial Columnist Bob Veres wrote a recent column that does an excellent job of outlining the major structural issues of Wall Street. Bob explains the three pillars of Wall Street’s business model and does a great job of highlighting how it impacts America and individuals in a bad way.

The article is an excellent read for anyone with even a passing interest in finance, investments or Wall Street. Two big thumbs up for an excellent article by Bob Veres.

http://www.advisorperspectives.com/articles/2015/12/22/the-case-against-wall-street