I agree of course that the BLS has a long history of being highly professional and independent. I hope but am not quite as sure as I once was that they (and the Fed) can continue to be. Even a modest decrease of expectations about the degree of independence of the BLS or Fed could have an effect on bond markets (the latter much larger).
The section titled "Investing's Dirty Little Secret" very interesting, as it outlines how mutual fund portfolios are not a great option because they results in high fees that deliver zero incremental benefits. In this article, Jane, switched to low-cost index funds and TIPS which ultimately cut $20,000 in annual fees demonstrating that sometimes the easiest approach at the lowest cost comes out on top over complicated strategies. I found this information very helpful because people are always trying to find the most complex strategies when it comes to saving money, yet the best option is sometimes the easiest.
Great article thanks. Regarding TIPS, what do you think about the risk of politically motivated pressure on BLS to underreport CPI inflation? If successful, wouldn't that undermine the value of the TIPS strategy mentioned in this article?
still have difficulty finding a financial adviser who acts as a fee for service fiduciary to provide occasional advice vs a percentage of assets managed charge.
Genau as they say in German. best, Larry
Great! Pls shoot me a testimonial if you'd like. kotlikoff@gmail.com. Would just need you location and occupation. best, Larry
I don't think this is a real risk. The BLS is a highly professional, independent agency. best, Larry
PS, You using MaxiFi?
I agree of course that the BLS has a long history of being highly professional and independent. I hope but am not quite as sure as I once was that they (and the Fed) can continue to be. Even a modest decrease of expectations about the degree of independence of the BLS or Fed could have an effect on bond markets (the latter much larger).
Yes I'm using MaxiFi -- a great tool!
Hi Jaime,
Email me at kotlikoff@gmail.com. Are you using MaxiFi? best, Larry
The section titled "Investing's Dirty Little Secret" very interesting, as it outlines how mutual fund portfolios are not a great option because they results in high fees that deliver zero incremental benefits. In this article, Jane, switched to low-cost index funds and TIPS which ultimately cut $20,000 in annual fees demonstrating that sometimes the easiest approach at the lowest cost comes out on top over complicated strategies. I found this information very helpful because people are always trying to find the most complex strategies when it comes to saving money, yet the best option is sometimes the easiest.
Great article thanks. Regarding TIPS, what do you think about the risk of politically motivated pressure on BLS to underreport CPI inflation? If successful, wouldn't that undermine the value of the TIPS strategy mentioned in this article?
still have difficulty finding a financial adviser who acts as a fee for service fiduciary to provide occasional advice vs a percentage of assets managed charge.
Yup. and we have known this for some time!