An Introduction

Hi. Welcome to BourGroup and my blog. Phil

Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.

I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.

"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.

Thursday, September 29, 2011

What Does a Loss Really Mean to You?

This quote really puts investment performance into perspective if you have 10, 20 or more years of future earnings to add to your retirement assets. Your "human capital" (what you make) can be very important to your overall financial health.


From Nobel Laureate Robert Merton (Morningstar video clip created in 2011):

“…If we only focus on the financial piece and we say we put a 100% of that in equities, when you just look at what happens to that, it looks very risky. We say to ourselves, "We had a decline of 30%; equities have lost 30%."

But if we look at it more holistically and say, "Really it’s not that bad. They only have 10% of their retirement assets in this, because the other 90% is future contributions," then saying a decline of 30% is really only 3%....”