Roger Beep

What Is Diversification Worth?

Geoff,

This is a very insighful article. Your summary of other quant efforts along side yours cumulatively lays the foundation for more effective individual investor investment strategies.

Question have you comapred QPP's Diversification Metric (DM) to the diversification premium? What is an optimal DM value in relation to diversifiction premium return?

Fixing Target Date Strategies: 'Target Date Folios'

Geoff;

As an addendum to this paper I would like to see a comparison of the cumulative life time fees associated with the seven target date funds mentioned compared to forecasted return. How much and what percent 'draw down' do the fees have on each fund mentioned?

Fixing Target Date Strategies: 'Target Date Folios'

For the vast majority of investors who are starting out the ‘Target Date Folios’ concept would seem to take the angst out investing and portfolio planning, putting things on autopilot. I have a few questions in the form of ‘system checks’ before one is on the glide path. (1) Initially how is investor’s risk tolerance determined? (2) How are other systems checked out prior to embarking on the glide path; these are embedded financial systems such as household cash flow or budget that may utilize another kind of asset allocation plan. Does FOLIOfn work with their clients and assist them in the development of these subsystems? (3) How often and how is glide path error correction factored into the process over the years? As I recall ESP Planner was an effort at optimizing some of these embedded factors. In that vein, are there similar investor financial systems checks in FOLIOfn’s planning that provides for glide path error correction over the years? Aside from these questions the concept and FOLIOfn’s product seems like a breakthrough for individual investors and the article is exceptionally well written.