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Saturday, September 03, 2011

Bob Brinker's Rules on Investing

Happy Labor Day Weekend!
We have TWO special treats for you this weekend:
  1. Bob Brinker's Rules on Investing - Become Your Own Money Manger
    This is an article David Korn and I just finished that summarizes what we believe is the best of Brinker's advice on how to become your own personal finance manager.

  2. FREE August 2011 Retirement Advisor Newsletter.
Bob Brinker's Retirement Portfolio #3 vs Our The Retirement Advisor" Alternatives
David Korn and I started "The Retirement Advisor" in January 2007 partially because we believed people like Bob Brinker were recommending too much equity risk to their retired audience. Lets see how we've done.
Our "Balanced Model Portfolio #1" should be compared to Bob Brinker's "Balanced Model Portfolio #3" since both typically have 50% in equities.
Brinker's "balanced" Portfolio #3 on 1/1/07 was $197,794.
Brinker's "balanced" Portfolio #3 on 8/31/11 was $221,835, up 12.2%.
"The Retirement Advisor "balanced" Portfolio since 1/1/07 is up 19.1%, 57% higher than Brinker's balanced portfolio!
Even better, we thought there were "safer" ways to guard a portfolio against inflation (mostly using TIPS in place of equities) so we had two other "retirement portfolios" with less than 50% in equities.
Our two "safer portfolios are up 23.5% and 29.9% since 1/1/07! See Retirement Advisor Performance where we, unlike Brinker, are not afraid to show our returns by year.
The KEY for us is we believe people who have retired should look to maintain buying power over taking added risk to increase their standard of living. Brinker seems to target higher risk and volatility to advertise higher long term returns. We think OUR APPROACH IS BETTER but we know not all agree.

Make sure you read "
Kirk's Two Investment Letters"

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