Posts filed under “Investing”

A Word About Our New Fee Reduction Program

This week we had a few milestones: On Tuesday, we celebrated the two year anniversary of RWM, which launched on September 16, 2013.

Second, we announced a new program that will help lower fees for our clients.

Costs are something we are very conscious about. We are always looking for ways to keep fees as low as we can, as part of a general approach to reducing portfolio drag. There are a number of ways to do that — in our portfolio design, in how we approach managing assets for people, in our cost structure. Its why we developed Liftoff, a low cost automated asset management program for smaller accounts where high fees are potentially a significant issue.

We have been thinking about other ways to accomplish this goal, while simultaneously encouraging good investor behavior on the parts of our clients. A few serendipitous factors came together that led to the creation of this. One of them was an article by Jason Zweig of the WSJ, titled, Why Mutual Funds Should Pay Investors for Loyalty. The other has been our conversations with folks like Nick Murray, who did a MiB podcast with me in August.

Both Zweig and Murray are brilliant insightful observers of the world of investing and advisor services. They were really the muse for this concept. Having discussed related ideas with both of them, these two gentlemen led us to a flurry of ideas and conversations inhouse.

Could we lower fees based on longevity, AUM, the firm’s assets, our efficiency, or some other factor? 

The big breakthrough insight came from Michael and Kris – a discount as an incentive for good investor behavior. The goal is to avoid the sorts of issues which plague nearly all investors: Don’t get emotional, don’t try to market time, don’t chase the latest hotness, create a financial plan and follow through with it, stay the course despite when things get volatile like last month or today. It is really just following good, solid, basic long term investing strategies.

We looked at the costs against the long term benefits to the client — and we decided it was worth it. Compounded to the investor, savings over time can add up.  Hence, “Milestone Rewards” was born.

Clients who are with RWM for 3 years, complete and maintain financial plan, and don’t engage in the sorts of self-sabotage we see all too often will qualify. There will be fine print, I am sure, but thats the gist of it.

I am very proud of our team for this kind of innovative thinking. I am very confident that you will be seeing more of these sort of ideas going forward, quite soon.




Ritholtz Wealth Management Celebrates Second Anniversary with a Reward for its Clients  (PR Newswire)

This firm has a radical new plan to keep clients focused on long-term investing (Business Insider)


Category: Apprenticed Investor, Asset Allocation, Investing, Psychology

The World According to Free-Float Equity Market Capitalization

Source: BAML

Category: Digital Media, Investing, Markets, Valuation

Ray Dalio’s Interview at Bloomberg

Fascinating interview with Ray Dalio of Bridgewater yesterday by Tom Keene and Mike McKee, The full run of videos are here, but a few select excerpts are below:


China Is Going to Be Just Fine, But Weaker


More videos after the jump

Read More

Category: Economy, Hedge Funds, Investing, Television, Video

Thinking About Market Risk

Seeing the market crash from a few weeks ago, it is clear how quickly the market can ferociously hurdle in front of one’s risk models.  Risk models that failed to safeguard against risk when it mattered the most.  Models that left many large hedge funds hemorrhaging - top funds which by definition were supposed to protect their investors in the August…Read More

Category: Investing, Markets, Think Tank, Trading

The advice to ensure financial ruin? It fits on a 4×6 index card.

    My Sunday Washington Post Business Section column is out. This morning, we look at the idea of putting all if the financial advice anyone needs on an 4×6 index card — the twist is to invert it, via some really bad advice. Both the print and online versions had the Twitter friendly headline How to ruin…Read More

Category: Apprenticed Investor, Humor, Investing, Really, really bad calls

Returns Per Asset Class 2015 YTD

Nice chart via Deutsche Bank:   Source: Deutsche Bank

Category: Asset Allocation, Digital Media, Investing

Jason Zweig’s Rules for Investing

Coming up this week for our Masters in Business podcast, I am sitting down for a conversation with Jason Zweig. One of my favorite books of his is Your Money & Your Brain. Buried within its appendix is a great list of common sense rules that are commonly ignored. Perhaps I can find a few questions…Read More

Category: Books, Investing, Psychology, Rules

Five things you can do to get your financial house in order

A rollicking week in the markets is really a chance to clean up your act Barry Ritholtz Washington Post,  August 28 2015       Don’t say you weren’t warned. A few months ago, with markets on a hot streak, you were given the Solomonic heads-up that “this, too, shall pass.” Your portfolio was basking in the…Read More

Category: Apprenticed Investor, Asset Allocation, Index/ETFs, Investing

Bloomberg TV: Evaluating a Volatile Market

Evaluating the state of the markets and the potential timetable for a Federal Reserve rate hike.

Panic or Profit: Evaluating a Volatile Market

Source: Bloomberg, September 2, 2015 1:38 PM EDT

Category: Investing, Media, Video

Are You a Trader or an Investor?

At the risk of overstating the obvious, there are important differences between traders and investors. Their timelines differ, as do their goals, preferred assets and methods. Yet some of what I have been hearing from members of each group suggests they themselves can sometimes become confused about these dissimilarities. Blame the recent market volatility for…Read More

Category: Asset Allocation, Investing, Psychology, Really, really bad calls, Trading