• Uncategorized

    Why Do Financial Plans Fail?

    You have likely heard of Financial Planning, and you may even be using it yourself to prepare for retirement. Although it has become a very popular way to create portfolios, I have come to believe that traditional Financial Planning has four specific flaws that may be fatal. Since realizing how risky Financial Planning was, I have begun creating portfolios which have a higher return and create a margin of safety (or a substantial windfall of extra savings above and beyond what is nominally necessary for comfortable retirement) to mitigate what I believe are significant risks as the market changes with new technology and industries. Our view is that traditional Financial…

  • Current Events,  Mile High View,  Uncategorized

    Making the Most of a War of Words

    The presidential race has begun. If you have listened to the debates, you know the Affordable Care Act (Obama Care) is a hot button issue. The question: Is the health care issue just a political scheme or is there a real problem? I believe health care is a real problem, one that will grow the longer it is unaddressed. I also believe this crisis is becoming a war of words where facts are forsaken in the pursuit of a successful election. For both Republicans and Democrats, discussing health care is about winning a debate. Inflammatory words are used. There is talk of a government takeover of our medical system. Threats…

  • Current Events,  Return on Investment,  Uncategorized

    Flash Trading

    In 2008 very few people had heard of credit default swaps, overnight repos, or collateralized debt obligations (CDOs).   Many of the firms that brought those financial creations to the market have brought dark pools and high frequency trading. Firms doing high frequency trading execute over half the orders in the stock market and probably place over 95% of the orders. Dark pools account for another 25-30% of trades. That leaves less than one out of four trades being done “the old fashioned” way. I believe it is important to understand what is going on and to keep the focus on the longer-term to build wealth and income. I first licensed…