Practical insights for today's retirement planning challenges.
Target Rate Funds (TRFs) use Portfolio Navigation to continuously adjust portfolios based on market conditions and the unique financial goals of each participant. This article follows the path of an individual investor, contrasting real-life gains from Target Date Funds (TDFs) and Target Rate Funds.
Jim Kaffen
The world of finance is often at the forefront of technological innovation, but when it comes to investment strategy, the industry lags behind. Despite significant advancements in portfolio theory, many investment practices remain anchored in outdated models.
Jim Kaffen
In this blog post, renowned financial expert Frank Sortino critiques the traditional risk tolerance questionnaire, arguing that it misrepresents risk by focusing on volatility rather than a more realistic measure of success: achieving a Desired Target Return (DTR). While Sortino refers to this concept as DTR, at Essential Returns, we use the term Essential Returns Objective (ERO). Both concepts emphasize the importance of maximizing returns above the target while minimizing risks below it.
Frank Sortino
If you're planning for retirement and wondering whether traditional target-date funds (TDFs) are your best option, this article introduces an exciting alternative. While TDFs have their benefits, they don't always consider your unique financial situation. Enter the Essential Returns Objective (ERO) Calculator and Optimizer, research-backed tools developed by leading financial experts. These tools tailor investment strategies based on your specific goals, offering a more dynamic and personalized approach. By combining the benefits of both TDFs and custom solutions, the ERO tools could help you maximize your retirement savings and give you peace of mind for the future.
Jim Kaffen
We challenge the traditional view of making money as the ultimate goal in investing. Instead, we propose it should be considered a strategic objective, a tool to achieve specific life goals such as homeownership or funding education. This shift in perspective encourages a more purposeful and fulfilling approach to investment strategies.
Jim Kaffen
Post-Modern Portfolio Theory (PMPT), developed by Dr. Frank Sortino, improves on Modern Portfolio Theory (MPT) by incorporating the Essential Returns Objective (ERO). ERO focuses on realistic return goals, behavioral finance, and alternative distributions, providing a more adaptive approach to portfolio diversification and risk management.
Jim Kaffen