On August 30, 2016, Morgan Housel wrote his final Fool.com column. It was column number 3,382. He wrote the first one 9 years ago. (For comparison, RIIA was started 11 years ago.)
Michael Kitces flagged the column on LinkedIn and it is indeed a good read because Morgan summarizes the key lessons learned since 2007.
Out of the eight investment management lessons, all of which are worthy of your attention, two resonate particularly true for retirement management lessons as taught in the RMA coursework:
“… success boils down to avoiding catastrophic mistakes”
Retirement management, as exemplified by RIIA’s Retirement Allocations ℠, boils down to a “prudent exchange of risks”. The Retirement Allocations are risk management-technique allocations.
“Few things are more valuable than room for error.”
Retirement Allocations can be determined in several ways but calculating risk capacity using the Household Balance Sheet Analysis℠ returns a dollar value which defines the client’s room for error.
Our next online class the RMA designation begins September 18th through Salem State University. Register here.