The Financial Survival Guide to Retirement

1
The Financial Survival Guide to Retirement

• Investment In Practice

2
Review

• Efficient Market Hypothesis
• Modern Portfolio Theory
• Post-Modern Portfolio Theory
• What do you think?

3
Review

• Determine your investment objective
• Know your risk tolerance
• Identify your alpha and beta
• Alpha percent you are willing to bet
• Beta percent invested in the market
• Place your bets with your Alpha
• Invest Beta according to asset allocation
• Use index funds to match the market

4
Review

• Asset allocation is the single biggest
  determinate of portfolio results
• Whats your beta?
• Major asset classes
• Stocks
• Bonds,
• Cash
• How you allocate your investments depends upon
  the returns you need and risk you can take
• Rule-of-thumb stock 100 - age

5
Investment Examples

• Example advice from Money Magazine and Smart
  Money
• Review their situation
• What would you advise?
• What do you think of the advice given?