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An annuity plan is a true retirement plan because one may never be certain of their life expectancy. Annuity plans are acquired to safeguard against premature death, just like term policies do.
It seems that markets are currently giving labour the benefit of the doubt. I've assumed a broad range of expertise, from individuals with little experience to those who have worked in investment banking or the fund management sector directly.
Hi @stevecornell5596 thanks for that - I hadn't heard of them. I like their three-point summary on their landing page: 1) think in decades not months, 2) be objective & independent, 3) Continuously learn & improve. That's bang in line with our philosophy. Thanks Ramin.
It would be good to see a video on the theory behind the factors within the framework of the Efficient Market Hypothesis. I.e. why is it riskier to hold a stock that is small or has a low P:B or has high quality (high profitability and/or low investment) and how diversifying across factors is expected to increase risk-adjusted returns?
@user-zf8yh2cu5f I can't answer that in a RU-vid comment, but I suggest reading into the Efficient Market Hypothesis (EMH) and the 5-Factor Model by Fama & French. If you accept the EMH, then the only way to increase your expected return is to increase exposure to known risk factors.
@fredatlas4396 a market-cap weighted index fund only gives you exposure to the (stock) market factor. To get additional exposure to 'value', you have to overweight value stocks. Same for 'size', 'profitability' and 'investment'.
For a more in depth view of this topic, I can only recommend Prof. Aswath Damodaran's course on valuation. It's free on RU-vid, and the lectures/slides/notes/homework are on his website. Fair warning, it is long, detailed, and boring at times, but everything you learn is very useful.
And if everybody follows these pieces of advice, stock prices will push up and everything will go to the garbage. Ramin knows it, but he also knows 90% of the viewership isn"t that intelligent/educated... and eventually sponsor may pay pretty well.
Everyone will never follow the same advice from Ramin at the same time. So, you don't need to worry about that ever happening. Moreover, if everyone followed his advice, then they'd just put a percentage of their earnings into a low fee global index fund each month and not worry about trying to do anything more complicated than that.
Picking stocks and seeing your profits rise is easy. The difficult part is spotting when to bail out. A good example of that which affected me personally was the well run and profitable Lloyds Bank being persuaded by the Government to take on Halifax, a company I had identified as a Basket case back in 2003.
Not really, because like Ramin says, his products actually work, and they also sell. So, his products are real, and his companies actually make profits from sales. Two of my brothers drive Teslas, as do millions of other people, and they are good cars. Elizabeth Holmes didn't even have a working product, and the only money that she made was from fleecing her initial investors. It's a completely different situation to Musk and Tesla.
@@Pensioncraft Last year, before the Tesla price cuts, I read that to justify the share price Tesla would have to sell more cars than Toyota while maintaining their current profit per car.
