Weekend Reading – Safe Withdrawal Rates Based On Inflation & Valuations
Weekend Reading is a collection of Investment Research and Lifestyle topics from all corners of the Web. We source the highest quality insights from Wall Street and Main Street that you may apply to your investment process. Unlike the rest of Bankeronwheels.com, this series is provided without additional guidance. As usual, everything is to be used at your own risk. Below is the type of content we shortlist:
My partner Charlie says there is only three ways a smart person can go broke: liquor, ladies and leverage,
Now the truth is — the first two he just added because they started with L — it’s leverage.
INVEST WISELY
CONSTRUCT YOUR PORTFOLIO
How Do ETF Fees Work? (Bankeronwheels.com)
Over the past two decades, Index Investing became attractive, partly due to low ETF fees.
While you can’t avoid fees altogether, minimizing them is vital for maximizing your long-term returns. What are the different fees, when and how should you trade ETFs? Who is pocketing your fees?
Ready to safeguard your returns from unexpected fees? Let’s dive in!
UNDERSTAND FINANCIAL MARKETS
Sources of YTD Total Returns (Blackrock)
With the AI rally, valuation continues to drive total equity market return this year, having dethroned earnings.
Earnings (red) will need to come through for equities to stablise at these levels, especially in the face of elevated rate vol. The AI theme continues to stand out – driving recent earnings estimate upward revision and accounting for half of circa. 10% earnings growth expectations next year.
Source: BlackRock
- Argentina vs Austria, the smackdown of the century (bonds) (FT.com, click on the first link)
- Default rates, defined broadly, are spiking, just in new ways and new places (Verdad)
- How An Old Regulation May Have Driven Inflation in the 1970s. What now? (Bloomberg - 48 min)
- Europe is the new Japan (Italian Leather Sofa)
- Japan: The land of the rising profits (GMO)
HOW TO INVEST
Active Investing
FACTOR investing
discretionary investing
Market Bipolarity: Exuberance versus Exhaustion! (Aswath Damodaran - 22 min)
In this session, Aswath uses the end of the third quarter of 2023 as an opportunity to look at economic and market movements during the quarter, and to try to make judgments about what the last quarter has in store. While the market looks close to fairly valued, given consensus earnings estimates and interest rates today, your judgment will change based on whether you think inflation will remain stubbornly high (subside) and on whether you think the economy is headed for a recession (soft landing).
ALTERNATIVE ASSET CLASSES
WALL STREET
SUSTAINABLE investing
crypto
Michael Lewis authored “Going Infinite: The Rise and Fall of a New Tycoon” which aptly describes the tale of SBF & FTX. This conversation gives us background on his relationship with SBF & his fallen empire, why he wrote the book & what he thinks you should think about Sam’s guilt or innocence.
BAD BETS
The fake genius: a $30b fraud (James Jani - 1 hr 5 min)
Sam Bankman-Fried was supposed to be a billionaire genius running the world’s largest Crypto exchange: FTX. In only a few weeks, his $32B empire crumbled, leading to his arrest. In this video, we unravel one of the decade’s most significant cases of financial fraud.
From Bankeronwheels.com
Get Wise The Most Relevant Independent Weekly Insights For Individual Investors In Europe & the UK
Liked the quality of our guides? There is more. Every week we release new guides, tools and compile the best insights from all corners of the web related to investing, early retirement & lifestyle along with exclusive articles, and way more.
Probably the best newsletter for Individual Investors in Europe and the UK. Try it. Feel free to unsubscribe at any time.
ETFs
Robeco is stepping into the European ETF market with a focus on active funds. The Dutch asset manager, which has €181bn assets under management, is planning to launch its first UCITS ETFs in Q2 2024. [FT.com]
Xetra has seen the launch of 3 new fixed income ETFs by the German asset management group DWS. The ETFs provide ultra-short-duration exposure to bonds from issuers of Eurozone sovereigns. All the ETFs have a 0.07% fee. [ETFStrategy.com]
US ETFs
BlackRock is set to launch ten ETFs focused on Treasury inflation-protected securities (TIPS). Ranging in maturity from 2024 to 2033, these ETFs will seek to provide inflation protection to investors concerned with erosion of purchasing power. The new TIPS-defined maturity bond ETFs will carry an expense ratio of 0.1%. [ETF.com]
From Bankeronwheels.com
Today's prices are not coming back!
In 2024, we will be increasing coaching service prices.
Sometimes individual sessions are very helpful to get past your investing concerns. Our readers asked us to create a coaching service. And we’re proud to say, that some of them even ditched their Financial Advisors, after experiencing the value we provide. Some of the topics we recently discussed include:
- How much money do I need to retire with higher inflation?
- Medium Term or Long Term Bonds with today’s yields?
- Risks and Returns of Money Market Funds
- Asset Allocation for 10-15 year goals with narrowing returns between Equities &Bonds
- Merits of UK Trusts that invest in unlisted companies
- Traps with choosing brokers – PFOF & Risks of moving to another country
- International Situations – Choosing ETFs when leaving Europe
From Bankeronwheels.com
Today's prices are not coming back!
In 2024, we Will be increasing coaching service prices.
Sometimes individual sessions are very helpful to get past your investing concerns. Our readers asked us to create a coaching service. And we’re proud to say, that some of them even ditched their Financial Advisors, after experiencing the value we provide. Some of the topics we recently discussed include:
- How much money do I need to retire with higher inflation?
- Medium Term or Long Term Bonds with today’s yields?
- Risks and Returns of Money Market Funds
- Asset Allocation for 10-15 year goals with narrowing returns between Equities & Bonds
- Merits of UK Trusts that invest in unlisted companies
- Traps with choosing brokers – PFOF & Risks of moving to another country
- International Situations – Choosing ETFs when leaving Europe
Wealth Management
Personal Finance
Visualizing the Top Countries by Wealth per Person (Visual Capitalist)
When looking at wealth per person on a country-by-country basis, is it more important to look at median wealth or average wealth?
Many experts believe that median wealth provides the most accurate picture of wealth since it identifies the middle point of a dataset, with half of the data points above this number, and half falling below it. In this way, it is less impacted by extreme values, and gives a good representation of the “middle of the pack”.
With that said, average wealth gives you a true average, even though it may get distorted by outliers, like the fortunes held by billionaires.
Either way, today’s graphic compares both average and median wealth across select countries, using data from the 2023 UBS Global Wealth Report.
Read more on Visual Capitalist
Early Retirement
Safe Early Retirement Withdrawal Rates Based On Inflation & Stock Market Valuations (Advisor Perspectives )
Bill Bengen has continued his groundbreaking research into retirement strategies. He has developed a framework for retirees to monitor and adjust withdrawals based on inflation and market performance, what he calls ‘the missing link’. SAFEMAX is subdivided into inflation regimes and CAPE ratios. What does it mean for you today?
Read more on Advisor Perspectives
FINANCIAL PRODUCTS
COST OF LIVING
OUR Community
Question of the week
DESIGN YOUR LIFESTYLE
Personal Development
From Bankeronwheels.com
Get Wise The Most Relevant Independent Weekly Insights For Individual Investors In Europe & the UK
Liked the quality of our guides? There is more. Every week we release new guides, tools and compile the best insights from all corners of the web related to investing, early retirement & lifestyle along with exclusive articles, and way more.
Probably the best newsletter for Individual Investors in Europe and the UK. Try it. Feel free to unsubscribe at any time.
Health & Wellness
Longevity: can ageing be reversed? (The Economist - 16 min)
Ageing has always been inevitable but fasting, epigenetic reprogramming and parabiosis are just some of the scientific techniques that seem to help people stay young. Might the Peter Pan dream become real?
CAREERS
TECH AND SCIENCE
Travel
Where the Ultra-Rich Spend Their Holidays (Visual Capitalist)
There are more than 25,000 centi-millionaires around the world today, forming an elite club composed primarily of founders and heirs of family fortunes. According to Henley & Partners, most of these individuals—who have more than $100 million in investable assets by definition—split their time between several properties each year. Much of this growth is expected to be seen in countries such as China, India, and Saudi Arabia. China’s Hangzhou and Shenzhen, specifically, are expected to see the highest percentage growth in centi-millionaire populations through 2033, growing by 95% and 88%, respectively. Despite the rapid growth of the wealthy in the global East, however, it’s notable that many centi-millionaires are still graduating from American universities. More than half of the top 20 universities with the most centi-millionaire alumni are in the United States, with Harvard, Stanford, and the University of Pennsylvania making up the top three spots. The top three seasonal vacation hotspots of the ultra-rich are found in the United States: Miami, the Hamptons, and Florida’s West Palm Beach.
Read more on Visual Capitalist
From Bankeronwheels.com
From Bankeronwheels.com
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Good Luck & keep’em* rolling!
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Good Luck and Keep’em* Rolling!
(* Wheels & Dividends)
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