Table of Contents for

Survival Guide for a Post-Pension World


Chapter 1: Starting From the Start

Making a Plan
Grappling With Uncertainty
Where Do We Start?
The Tools of the Trade

Chapter 2: Overview of Key Investing Topics

Investment Classes
Topic 1: Looking Forward vs. Looking Back
Topic 2: Equivalent Portfolios
Topic 3: Basic Diversification
Topic 4: Broader Diversification
Topic 5: Allocation to Bonds
Topic 6: Funds vs. Individual Stocks
Topic 7: Choosing the Right Level of Risk
Topic 8: Strategic vs. Tactical Asset Allocation
Wrapping Up The Overview

Chapter 3: Matching Your Investments to Your Goals

The Human Capital Model
Maximizing Your Odds
Stress Test Your Plans
Flexibility in Your Goals
Liability Driven Investing (LDI)
Comparing Portfolios
Figuring Out Your Own Risk Tolerance

Chapter 4: Factors That Determine Portfolio Performance

Risk vs. Return
Beta vs. Return
The Four Factor Model
Low Beta Portfolios
Liquidity as a Factor
Factor-Driven Portfolios

Chapter 5: Building Portfolios

The Palette of Asset Classes
Putting the Pieces Together
Case Study of the Value of Diversification
The Investment Universe

Chapter 6: Getting a Handle on Risk

Chapter 7: Creating Expectations for Asset Class Performance

Historical Risk vs. Return
Projections of Risk vs. Return

Chapter 8: Tactical Asset Allocation

Defining Tactical Asset Allocation
Berkshire Hathaway
Overvaluation of Equities in 2007
Extreme Risk Aversion in Early 2009
The View from Early 2010
Summary of Tactical Asset Allocation

Chapter 9: Individual Stocks vs. Funds

How Many Stocks Do you Need?
How Does Stock Specific Risk Add Value?
Different Kinds of Risk
Revisiting Berkshire Hathaway
Strategies with Low-Risk Individual Stocks
Strategies with Higher Risk Stocks
Additional Benefits of Owning Portfolios of Individual Stocks
Summary on Individual Stocks

Chapter 10: Bonds

Bonds as an Asset Class
Considerations in Choosing Allocation to Bonds
Liquidity Risk With Bond ETF’s

Chapter 11: Actively Managed Funds

Invisible Expenses
Loading Up on Risk
The Perverse Incentives of Fund Management
Choosing Active Funds

Chapter 12: Developing a Strategy

Super Simple
Glide Path Strategy
Passive vs. Active
Market Cap Weighting vs. Slice and Dice
Factor-Based Investing
Individual Stocks vs. Funds
Strategic vs. Tactical Asset Allocation
The Endowment Model
The Bodie Model
Defining a World View
The New Normal
A Coherent World View

Chapter 13: Savings Rates and Income Draws

How Much Do We Need to Save?
How Much Income Can We Draw?
Periodic Re-Evaluation
Final Thoughts on Savings Rate and Income Draw

Chapter 14: The Five-Step Portfolio Checkup

1. Evaluate Re-Balancing
2. Check on Current Plan
3. Check on Relative Valuation of Core Asset Classes
4. Check on Portfolio Risk and Valuation
5. Evaluate Individual Stocks
Putting a Plan Through its Paces

Chapter 15: Concluding Thoughts

Appendix A: Monte Carlo Simulation

Appendix B: Monte Carlo Analysis of Major Berkshire Hathaway Holdings

Appendix C: A Few Thoughts on Investing for Income

Bio of the Author

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