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Good judgment comes from experience, and experience comes from poor judgment.

http: www.latebloomerwealth.com click on LAUSD/UTLA tab, look for “PowerPoint Presentation.”. Good judgment comes from experience, and experience comes from poor judgment. Discovering Investing. Four basic principles Retirement plans are not free (70% think its FREE).

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Good judgment comes from experience, and experience comes from poor judgment.

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

  2. Discovering Investing Four basic principles Retirement plans are not free (70% think its FREE). Never pay commissions (loads, sales charges). Don’t mix insurance annuities with financing retirement. Pay lowest management fees (under .75%).

  3. Savings/Speculation/Investments • Speculation/Gambling • Individual Company Stock • Sector Funds (Oops!) • Ostrich farms in Oregon • Lottery • Las Vegas/Gambling • Gold/Precious Metals • Art (Only for Pleasure) • Derivatives • Hedge Funds • Private Equity • Illiquid/Private REITS Savings (low performance) • CD • MM • Credit Union • Bank • TSA (Illiquid) Investments • Stocks (mutual funds) • Bonds(funds) • Home (Illiquid) The art of being wise is knowing what to overlook--William James.

  4. Four Choices: Tax-Deferred 403b Contributions

  5. Thought annuities (TSAs) were our only 403(b) option • Discovered mutual funds! Ticker Symbol “MMM” MMM

  6. Discovering Investing cont.(Stocks and Bonds) Retirement plans are NOT free Never pay commissions (loads, sales charges) Don’t mix insurance with retirement planning Pay lowest management fees (under .75%) Diversification across the stock market asset classes. Don’t invest in one cherry.

  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. What the BLEEP happened?

  11. Diversification! 100% stocks, no bonds. Invested too narrowly in technology sector. Solution: Diversification Asset Classes: Domestic stocks/Foreign stocks/Bonds

  12. Domestic Asset Classes

  13. Now What?

  14. “Cookie Cutting Plans?” 457b Plan • Vanguard Wellington: 65% stocks/35% bonds • Vanguard Wellesley: 35% stocks/65% bonds • BlackRockLifePath Index funds: 2020, 2030, 2040 and 2050. • Are cookie cutter plans OK? YES!

  15. Core Assets that all investors should have.

  16. .25% vs. 2.25% annual fees

  17. Summary 1. Think long term2. Have patience 3. Don’t panic--Learn from mistakes4. Buy, hold, and rebalance 5. Stock/Bond split (Cookie Cutter balanced plans: Wellington, Wellesley, Blackrock LifePath)6. Watch the costs! Use index funds.7. Hire a fee-only fiduciary financial adviser.

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

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