Merriman

Please share your view of convertible bonds as an asset class for folks entering retirement.

Convertible bonds are a unique asset class in that they have features of both stocks and bonds. They are often referred to as “hybrid” securities. This, along with their typically sub-par credit rating, is why they do not fit into our bond portfolio.

We prefer to keep the stock and bond components of our portfolios separate. Our bond portfolio is designed to buoy the allocation in times of stock market stress. The potential for convertible bonds to act like stocks does not jive with this logic. If convertibles – due to their hybrid nature – were showing stock-like tendencies when stocks were declining, your portfolio would have much less downside protection. As we have seen in the recent past, it is extremely important that investors maintain some level of protection in their portfolio. We do not believe convertible bonds are the solution. (more…)

Merriman Financial Advisor Lowell Parker is quoted in this Smart Money article on how employees can patch the holes in their 401(k) plans.

Every year, we update some of the core articles in our Best of Merriman library.

The 2012 update of The ultimate buy-and-hold strategy, which includes performance information through 2011, is now available in our Best of Merriman library.

Editor’s Note: Below is an article published first on MarketWatch.com that was written by Larry Katz, CFA – Director of Research at Merriman.

A major concern of many people is whether their savings will last for their entire retirement. If the savings do last, it’s a success, but if the savings don’t last it could be considered a failure.

Key factors which influence whether savings will last for your entire retirement include the size of your portfolio at retirement (bigger is better), the amount of periodic withdrawals (the lower the withdrawals the greater the chance of not running out of money) and longevity (the longer you live, the more you need at the start of retirement).

Another consideration is the diversification among various asset classes within the portfolio. The greater the diversification and exposure to beneficial asset classes, the lower the portfolio risk, and the greater the chance of financial success in retirement. (more…)

So far, this workshop has covered the most important things every investor should know and think about. However, all the investment knowledge in the world won’t do you much good unless you put it to work in your portfolio and your life.

In the sixth session of our online workshop, Moving into action, I identify the key things that will be most useful in translating knowledge into action and action into results. I’ll also point you to a lot of helpful books and other resources.

Recommended reading to supplement this section: “Your Action Plan,” Chapter 15 in Paul’s book “Live It Up Without Outliving Your Money.”

When you retire, your financial life may change profoundly. You may have been saving money all your life, and suddenly the flow of dollars starts moving the other way. This change has large challenges emotionally, mathematically and financially.

In the fourth section of our online workshop, Paul discusses taking distributions in retirement and suggests solutions that are likely to work for retirees in various circumstances.

If this topic is of particular interest to you, we recommend reading our Best of Merriman article, titled “Retirement distributions: How much can you afford?”

We hope you have enjoyed the first two sections of our online workshop. The third section, Selecting the best mutual funds, is now available at our YouTube channel: www.youtube.com/merrimaninc.

Thousands of mutual funds are available in today’s marketplace, but only a handful are truly the very best for investors. In this section of the Merriman Online Workshop, Paul Merriman compares two fund families, showing why each is worthy of your investment dollars and your trust.

If you missed the first two sections, you can find them here:

Section 1: Choosing the best asset classes

Section 2: Fine tuning your asset allocation

A couple of weeks ago, we introduced our online workshop with Section 1: Choosing the best asset classes.

Now Section 2, Fine Tuning Your Asset Allocation, is available at www.youtube.com/merrimaninc. Arguably the single most important decision every investor makes is how much of his portfolio to hold in stock funds and how much in bond funds. This is the main determining factor in both risk and returns. In this section, Paul Merriman uses a table of investment results going back to 1970 to help you choose the allocation that is most likely to be successful for you.

The six videos that make up Section 2 cover:

1. Fine Tuning Your Asset Allocation
2. Fine Tuning Table
3. S&P 500 vs Worldwide Equity
4. The impact of adding fixed income
5. Fine Tuning for retirees and moderate risk investors
6. Finding your personal best asset allocation

Successful investing is all about making smart choices, and I’ve taught thousands of investors how to do that since our company opened in 1983. Our teaching has taken many forms, including radio, television, newsletters, podcasts, books, articles, websites and DVDs. But my favorite format is the live workshop, a room filled with investors looking for the best solutions.

For most of my career, delivering a workshop required actually being in such a room, often with extensive travel involved. Now I am delighted to present a consistent workshop experience to thousands of investors online. (more…)