Larry Swedroe

The Way Smart Money Diversifies Risk

The "benefits" of the variable annuity cited are far more expensive than can be obtained by other means---obtained more efficiently.

That is one of the things we do in the book. We show how while some investment might look okay, there are better ways to achieve the same result. Example, junk bonds are totally unnecessary and the higher expected returns are better obtained (for variety of reasons) by simply adding bit more equity risks (beta, size +/or value) and then using Treasuries or better TIPS.