The Unfilitered Truth About the Financial Services Industry

John Oliver Lambasts the Retirement Plan Industry

A MUST WATCH FOR EVERYONE

Spend 20 minutes to watch the most entertaining explanation of how Wall Street and brokerage firms take advantage of clients. The filter is off as John explains it as only he can. Yes, there is some explicit language but it is completely appropriate under the circumstances.

If you have a retirement plan you must watch this video. If someone is trying to sell you financial products you have to watch this video. Thanks to John and his team for producing this video.

This video clip will leave you laughing and crying all at the same time. It exposes Wall Street for what it is in language that anyone can understand. Enjoy this video and PLEASE share it with everyone you know.

Gary Allen on Business – Sunday, March 6, 2016 – Podcast Now Available

are you ready with related words cloud hand drawing on whiteboar

So many questions about investing and retirement…

Common Questions I Often Hear About Investing…

Is it a good time to be in the market? What about timing the market? When is a good time to get in or get out of the market?

All of these questions are somewhat similar because they are asking if I have some kind of ability to know in advance what it going to happen. Unfortunately, I don’t have that power and by the way nobody else does either. Although Andrew Bogut of the Warriors predicted a Curry 3-pointer before he dropped one in… but aside from that, no one has the ability to predict the future with any certainty.

Later in the program, I cover the total wealth equation, which is a combination of human capital and financial capital. If you can understand this basic concept, it provides you with a much clearer understanding of the trade offs in life between spending and saving.

Finally, I spend time discussing how Wall Street and most firms have been wrong about your number for so long. Most financial firms talk about building wealth and reaching for some big number. That number represents a nest egg of wealth. However, for retirement, the real number should be income. People need an income to survive. Wealth is not tied to inflation or retirement and is a difficult concept for people to understand. Next week on the program, I will dive deeper into this important concept.

I hope you enjoy the program this week. As always, thank you for listening to my program on KNBR.Thanks to my great product Justine for always doing a great job.

If you have any questions or would like to contact me, email is usually the best gallen@prudentllc.com or you can try to call, but I am often unavailable 916.436.8331.

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

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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