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http: latebloomerwealth click on LAUSD/UTLA tab, look for “PowerPoint Presentation.”

http: www.latebloomerwealth.com click on LAUSD/UTLA tab, look for “PowerPoint Presentation.”. 1. Wisdom comes from experience and experience comes from mistakes . 2. Good judgment comes from experience, and experience comes from bad judgment. A Journey.

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http: latebloomerwealth click on LAUSD/UTLA tab, look for “PowerPoint Presentation.”

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  1. http: www.latebloomerwealth.com click on LAUSD/UTLA tab, look for “PowerPoint Presentation.” 1. Wisdom comes from experience and experience comes from mistakes. 2. Good judgment comes from experience, and experience comes from bad judgment.

  2. A Journey

  3. Discovering Investing (over time).(Stocks and Bonds) From 4 basic Mistakes and resolutions Retirement plan is free (70% think its FREE). Never pay commissions (loads, sales charges) Don’t mix insurance with retirement planning Don’t pay 12b(1) fees (marketing costs) Pay lowest management fees (under .75%). "Successful investing involves doing just a few things right, and avoiding serious mistakes." - John Bogle, created the first index fund.

  4. Savings/Speculation/Investments Savings (low performance) • CD • MM • Credit Union • Stable Value • Annuity (Illiquid) Investments • Stocks (mutual funds) • Bond(funds) • Home (Illiquid) • Speculation • Individual company stock • Ostrich farms in Oregon • Lottery • Las Vegas • Options • Futures • Derivatives • Hedge Funds • Private Equity • Illiquid/Private REITS The are of being wise is knowing what to overlook--William James.

  5. Mistake # 2: Thought annuities (TSAs) were our only 403(b) option • Discovered mutual funds! Ticker Symbol “MMM” MMM • Mistakes 3 & 4 coming up!

  6. Four Choices: Tax-Deferred 403b Contributions

  7. March 10

  8. Our Tech-Bubble High! (March 10, 2000)

  9. No-loads can be expensive too! $1,500,000 x 1.1% fee = $16,500 annually! $1375.00 per month! WHAT?

  10. 2000-2002: The Bubble Burst

  11. What the BLEEP happened?

  12. Last 2 Mistakes…. 3. 100% stocks, no bonds. TOO MUCH RISK! 4. Invested too narrowly in technology. Solutions • Learning five (5) major asset classes. Domestic/Foreign • Domestic: (1. large 2. medium 3. small companies) • 4. International • 5. Bonds • % of bonds about equal to your age.

  13. Domestic Asset Classes

  14. Now What?

  15. 403b--Pension2: DFA Emerging Markets Portfolio (.94% cost).

  16. Core Assets that all investors should have.

  17. .25% vs. 2.25% annual fees

  18. What we learned 1. Think long term2. Have patience 3. Don’t panic--Learn from mistakes4. Buy, hold, and rebalance 5. Balanced Stock/Bond split: Bond allocation appx equal to your age6. Watch the costs! 7. Hire a fee-only fiduciary financial adviser

  19. ActivityConstructing a fully diversified, low-cost portfolio using LAUSD’s 403b and 457b plans.

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