Archive Monthly Archives: March 2012

Why Stock Market Returns Matter, But Not for the Reasons You Probably Thought

I've been known to quote stock market returns from a Compound Annual Growth Rate (geometric mean) point of view.  This calculation takes into account the effect time has on a rate of return and is wildly

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Allan vs. Pam: Bank on Yourself

Spring is here, time to enjoy warmer days (if you're with me in the Northeast), blooming flours, and a fight between a so called financial educator who hustles a selling system to insurance agents known

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Indexing In Monte Carlo

Now that we know the basics of indexing, we can dive into a much more interesting topic: Does it work?  We're going to use a hypothetical contract (it's actually a real contract from which I have borrowed

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The Indexed Approach

For several decades insurance companies have been using an approach to determining credited interest rate that is known as indexing.  It's a practice that has had it's detractors (yours truly for a little

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