Letter to Clients – 4th Quarter 2009
The move to our new office went well and we settle in more every day. By the time you receive this we should have pictures on the walls and the signs should be up.
Insights & Other Important Communication
The move to our new office went well and we settle in more every day. By the time you receive this we should have pictures on the walls and the signs should be up.
One of the disadvantages of being self employed is the lack of an employer sponsored retirement plan. Fortunately, there are several options available depending on how much you want to contribute each year.
When people who know me see me on the street, they stop and ask how I am doing. They make the assumption that given the terrible returns from the stock market and the high level of uncertainty about the economy, that I must really be professionally frustrated. The truth is actually quite the opposite. As an individual investor, I too feel the pain. But as a Certified Financial Planner TM practitioner, never have I been so excited professionally.
Monte Carlo simulation is a complex statistical modeling method which can be useful in financial planning. The goal of Monte Carlo analysis is to apply statistical realities over multiple simulations and conclude how many of those iterations had a successful result. As I have said many times, financial planning is as much an art as is it a science. Unfortunately there are no absolutes or guarantees even with proper planning. Past performance is not an indicator of future results, so relying on historical averages can be misleading. Analysis is a tool, but only the proper use of the tool combined with skilled interpretation provides any value.