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.

Tuesday, February 11, 2014

Ray Lucia

Ray Lucia, author of Buckets of Money and several other books, has been battling the SEC over his misleading presentations on this strategy.

I recommend this particular book (for its general concepts/strategy) on my blog site and feel a need to let any readers here know about these proceedings.

On September 5, 2012, "...The Securities and Exchange Commission today charged a nationally syndicated radio personality and financial advice author for spreading misleading information about his “Buckets of Money” strategy at a series of investment seminars that he and his company hosted for potential clients...."

 If you would like to read more about this at the SEC site, here is the link:

http://www.sec.gov/News/PressRelease/Detail/PressRelease/1365171484416#.UvYkeXi9K0d

More importantly, on December 6, 2013, the U.S. Securities and Exchange Commission posted an Initial Decision on Remand that begins as follows:

"...This Initial Decision on Remand supplements the July 8, 2013, Initial Decision in this proceeding, confirms that Respondent Raymond J. Lucia Companies, Inc. (RJLC), violated Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 (Advisers Act) by misrepresenting the validity of purported backtesting in seminars for prospective investors..." 

 If you would like to read the entire case, here is the link:

http://www.sec.gov/alj/aljdec/2013/id540ce.pdf

In a recent (2014) Journal of Financial Planning article, a survey was cited that about 28% of financial advisors use a time-based segmentation strategy - similar to Ray Lucia's concepts. That is, of placing several years of investments in safe investments (cash, for example), then another set of investments to cover a few more years. Finally, a portion is invested in stocks that would, if needed, be allowed to grow through more difficult times while the safer investments are used up.

The strategy of time-based segmentation is not in question and I, personally, like the approach as it is easy to understand and allows the retiree, especially, a little breathing room when markets are down.










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