Raised in America, Germany and the UK, I studied inter alia under Nobel Laureate Friedrich von Hayek in Freiburg i. Br., Germany. The next 30 years were spent as a financial economist with leading banks of their day: Morgan Guaranty Trust, J Henry Schroder Wagg, N M Rothschild and S G Warburg. Moving to Hong Kong in 1989, I was the Chief Regional Economist for the latter two banks and a smattering of others. Affiliated with IAM Legacy Ltd., I now provide especially non-financial professionals with experienced, commission-free financial structuring advice - saving them costs northwards of 90% in the process. ================ Enzio von Pfeil (http://www.enziosclock.com/) has been an investment economist all of his professional life. Having studied under Nobel Laureate Friedrich von Hayek in Freiburg, Germany, he got his PhD in economics and then joined some of the major banks in their day: Morgan Guaranty, Schroders and Warburgs. He was Chief Regional Economist for major stock brokerages in Hong Kong since 1990, where he is happily married. Author of books and thousands of research notes, he is a regular guest of Bloomberg-UK and Bloomberg-Germany, and is invited frequently to CNBC and other channels. His focus always has been on how to make money out of economics, and his application is real: he now lives off his own investments. He founded Enzio's Clock (http://www.enziosclock.com/) in November 2000 with the objective to help his subscribers profit from cycles through rigorous application of his proprietary Economic Clock.
My story is that I retired in 2005 at age 46, having achieved the goal of financial independence for both my wife and I. I put our retirement nest egg in 5 year CDs and finally being empty-nesters, we lived off the interest and my pension from 26 years of combined service in the military and USG. However in 2010, the CDs matured and the yields dropped from 6% to 3%. We cut back on the world cruises and lots of other unnecessary expenses, but after 3 years of this and no end in sight I decided to turn our financial assets over to USAA Wealth Management.
I told USAA that I wanted maximum income, could withstand volatility, but not substantial long term losses (over a year) in principal. Every month I would look at how they were doing. The picture was not pretty. I was averaging only 1.4% in monthly income after their 1% fee was deducted; plus I was losing principal because of the decline in precious metals and bonds in 2013. It was time to take personal control over our finances once again and I began to build two portfolios.
One was with low cost Vanguard and was oriented towards conservatively managed, low fee, balanced dividend income funds like Wellington and Wellesley, but also included some more specialized growth funds. The Vanguard portfolio I leave on auto-pilot while I take all the dividends and capital gains. The other portfolio is composed of 27 CEFs and this is the one I actively manage.
Before I invest in any CEF, I do research on SA and the web, and I use my professional engineering and analysis experience to conduct due diligence using Morningstar's data and tools, CEFanalyzer, CEFconnect and the investment web site. I carefully select investments with the goal that they will not be traded and held throughout our retirement. In a way I have gone back to work part time.
I have invested in these CEFs: AWF, HYT, BIT, BBN, DSL, DBL, EOS. ETW, DFP, PFO, FFC, FLC, GOF, GBAB, VTA, HTD, INB, NHF, JRI, PTY, PCN, PCI, PDI, PKO, PFN, UTG, RIV
and these Vanguard funds: VHCAX, VDIGX, VEIPX, VHDYX, VSEQX, VWIAX, VWENX
I always welcome any critical discussion and advice!
Educated as EE, BS, MS, PhD. Worked in Corporate reseach for a large company. Life Fellow, IEEE, 9 patents. Interested in Seeking Alpha to gain access to diversified opinions on investment in my retirement.