Stock Valuation
Our friend asks us, how do you know if you are paying too much for a stock? The valuation of stocks can be done in different ways, some faster than others. The usefulness of a valuation lies in helping to determine whether the market price is attractive. Before we begin, let’s clarify that the market […]
READ MOREPrivate Equity Funds
Our friend asks us: should I move my investments to private capital markets? The reason behind this question lies usually in the expectation of higher returns[1], so it will be better to do a little analysis before answering it. The fundamental difference between public and private capital markets[2] is their regulation. Public markets are highly […]
READ MOREDividends
Our disciplined friend asks us: should I favor investments that pay dividends? Dividends are one of the most important sources of income for many investors, especially those who require their investment portfolio to generate periodic income that will serve to cover their expenses. But first, let us agree on a single and complete definition: dividends […]
READ MOREBeneficiaries in Retirement Accounts
Our disciplined friend asks us: what if at the end of my days there was a remnant left in my retirement accounts? Let us first clarify that it is difficult to achieve a financial plan that is both robust (in terms of meeting long-term financial needs under multiple scenarios), and that makes the end of […]
READ MORERetirement Plans for Entrepreneurs
An entrepreneur friend asks us: I want to accumulate savings for my retirement in the most appropriate and efficient way, how do I do it? One of the dilemmas of the entrepreneur is that, having blind faith in his business, he prefers to reinvest the profits to make it grow. If the business were profitable, […]
READ MOREFinancial Independence
We found our disciplined friend, who after greeting us asked: I have been hearing about the FIRE movement (short for Financial Independence Retire Early), is that possible? The FIRE movement promotes the idea that, through discipline in saving and spending, you can accumulate enough assets to be able to stop working at an early age, […]
READ MORERoth Retirement Savings Plans
We found our disciplined friend, who thanked us, on behalf of his son, for having guided him in the decision about the savings plan. However, he tells us: my son is being asked if he prefers to invest in the traditional 401k or a Roth, what do you think? Roth plans originated in the Taxpayer […]
READ MORERetirement Savings Plans
We find our disciplined friend looking a little bit confused. After greeting us, he says: my son has just graduated and got his first job, they are offering him a retirement savings plan, but he is very young and I don’t know if it is a good idea, what do you think? Retirement savings plans[1], […]
READ MOREInvest or Speculate
We found our disciplined friend and noticed that he was in good spirits. After greeting us, he says: I have followed your recommendations and I have opened an account to start investing. I am already authorized to use margin, have access to the options’ market, and subscribed to information services dedicated to identifying assets that […]
READ MOREPortfolio Size and Safe Withdrawal Rates
Our disciplined friend calls us, somewhat distraught, to ask us how to estimate the size of the portfolio of financial assets that will support spending during retirement, and how to determine the maximum withdrawal rate year after year. Before we get into the details, let us take this opportunity to explain that simulation models have […]
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