Conscientious Financial Planning and Retirement Income Management | 201-741-9528
from Lonier Financial Advisory LLC, Osprey, FL

All posts by Michael Lonier

Game Guide to Income, Savings, Wealth and Taxes

Summary One thing income is not is wealth. This is the first confusion we might encounter: High income does not necessarily mean great wealth. Savings is the source of income that protects our lifestyle when other income stops, but savings by itself, even significant savings, is not wealth. Income and wealth are taxed differently, so […]

Market Gyrations And Retirement Spending Volatility

Wall Street is selling wealth management by managing returns volatility when the vast majority of us probably need something else. Depending on where you are in the lifecycle, you likely will be better served managing savings or managing spending.

Client Note – The Brexit Leave – Upside in a Falling Market

For existing portfolios I rebalance when Upside regional allocations fall more than 20% outside of their regional target percentage. This rebalancing allow us to add to those regions in the global market portfolio that are now selling at a lower cost—buying low—while we sell at higher prices those regions that exceed their targets by 20% when that occurs. Buy low, sell high!

Catching a Falling Knife Without Bleeding – Value Averaging Down

Value averaging down increases market returns by lowering your basis. Dividends increase the total return further.

That’s how you catch a falling knife without bleeding. And that’s why this is a good time for those who have a strong balance sheet and a long-term plan to manage Upside, Floor, Longevity, and Reserves.

Looking at Floor Five Years Out

Most folks think investing is about picking stocks and dodging in and out of the market before the roof falls in. Maybe with play money. In real life, investing is about figuring out your life goals, how to pay for them, and then designing an investment approach that will get you to a successful outcome, […]

What Are You Paying Your Advisor For?

You know that the fees you pay to invest your savings matter, and that these costs, even tiny percentages, can significantly reduce your gains over a lifetime of saving and investing. You are probably also aware of the rise of “robo-advisors,” web-based automated do-it-yourself investment management sites like Wealthfront and Betterment that provide sophisticated, algorithmic […]

Why Diversify Anyway?

Upside is the amount that can be exposed to market risk for growth without jeopardizing household lifestyle.

Individual Stocks, Is That a Good Idea?

In the last post we saw that market returns (the mean) are higher than average fund returns (the median) because the majority of mutual funds under-perform the market average. We also saw that mutual funds are packaged investment strategies, which are actively managed bets designed to beat market returns. And finally we saw that the […]

Not-Diversification—Two is Better than One, Right?

ANTONIO Believe me, no: I thank my fortune for it, My ventures are not in one bottom trusted, Nor to one place; nor is my whole estate Upon the fortune of this present year: Therefore, my merchandise makes me not sad. SALARINO Why, then you are in love. –Act I, Scene I Venice. A street, […]

Some Caution About Retirement Income and English Gentlemen

“A mere madness, to live like a wretch, and die rich.” —Robert Burton, The Anatomy of Melancholy, 1621 My mother used to say that a gentleman lived on the interest from his principal. That didn’t apply to our circumstances, not by a long shot (substitute “sweat of brow” and you’re closer to fact). I suspect […]