Tangible Mental Accounts: A Modular Concept

Tangible Mental Accounts: Researchers have shown that people tend to divide their money into separate mental accounts for various purposes ( think travel or dining out) and that earmarking savings to specific goals ( college savings, for instance) tends to increase savings rates.George Loewenstein, a professor of economics and psychology at Carnegie Mellon University, has proposed applying these concepts to retirement. The idea would be that retires have separate accounts for various purposes and use different investment strategies with different levels of risk for each. For policy makers, the idea would be to ask whether the retirement income strategy offers "multiple accounts to facilitate different goals, such as paying the rent or spending money on vacations."

In the Modular World the possibilities are boundless, and you are part of the process.

Evolution in Investment Management

What has worked what has not and why


ETFs vs Mutual funds - Alpha

Hedge funds vs Index funds - Alpha

Structured products vs Complexity

These things don't matter til they matter - then you get a selloff

Reverse evolution set the industry back 20 years -

Can't stand in a puddle and not get your feet wet

!0 year lead in a trillion dollar market........

50% of the problem is a culture issue and this will take a generation to evolve...case closed

Retail Mrket is trapped because they can continue to "get away with it"

Banks and Brokers are in Business the Make Money (for themselves) with Your Money

Nothing wrong with that that is their culture and their business model any way they can do that they will.....

This is a transaction and fee model not a preformance Model.

Hedge fund management is a performance model..

Modern Portfolio "Theory" - Waiting for the Tooth Fairy in the Land of Make Believe

While They Collect their Fees.......The Industry has everyone believing in and Playing Their Game......The reality is if something is hard to think about then people tend to believe it less....

Farnam Street Blog 12-11-2010

The Next Level Level

Alpha Matrix Portfolio Management

MW/AMPM - Combines and synthesizes a number of disciplines to deliver an outcome focused process, including Complexity, Evolution Theory, Game Theory, Competition and Common Sense.