Rebalance IRA Launches Center for Retirement Investing on Fifth Anniversary of
New YouTube Channel Features Investment Experts Who Say Balanced,
Low-Cost Strategies Remain Key to Secure Retirement
WASHINGTON, DC -- (Marketwired) -- 09/30/13 -- Charley Ellis
remembers exactly where he was five years ago, when financial
services firm Lehman Brothers declared bankruptcy, sparking a one-day
drop of 500 points in the Dow and the start of the Great Recession.
At the time, Ellis was chairman of the Investment Committee at Yale
University, overseeing some $23 billion in assets.
"The year 2008 was a horrific experience," says Ellis. "Did it change
any long-term views, any fundamental beliefs? Honestly no. Did I
enjoy it? Absolutely not. Was I deeply upset? Yes. Did I have serious
conversations with my wife? Yes. Did I wonder whether I was doing the
right thing? Yes. Did I hang in there? Fortunately yes."
Ellis shares the lessons he learned in a series of television
conversations that debut today on a new YouTube channel presented by
The Center for Retirement Investing, an educational project sponsored
by the retirement advisory firm Rebalance IRA. Joining Ellis are
Princeton economist Burt Malkiel (author of A Random Walk Down Wall
Street) and Jay Vivian, former Managing Director of IBM's Retirement
All three are legendary experts in the world of investing and
together they form the Investment Committee of Rebalance IRA. Each
advocates an approach to retirement investing that features indexing,
low fees, and regular rebalancing among asset classes.
Malkiel argues that the experience of 2008 provides a prime example
of why market timing doesn't work. According to Malkiel, "In more
than 50 years, I have never known anyone who could consistently time
the market. In fact, I've never known anyone who knows anyone who
could consistently time the market. In the third quarter of 2008,
during the height of the financial crisis, more money came out of
equities than ever before. People were taking money out by droves.
And that was exactly when they should have been putting money in. So
the problem is you'll never get it right and you're more likely to
get it wrong when you try to do it. It's extremely dangerous. Don't
Vivian agrees that one of the biggest mistakes investors made after
the Lehman collapse was to withdraw from the stock market. "The
market peaked in October 2007. And the market ran down for 18
months," observes Vivian. "A lot of people said, 'Man, I can't stand
the heat. I'm getting out of the kitchen.' That was exactly the wrong
time to get out because that's when the market started back up again,
and now we've seen that the market has gone back up to record highs.
It's tempting to want to take all your chips off the table, but it's
better just to stay the course."
New research conducted by The Center for Retirement Investing
reinforces the argument that investors win by combining a long-term
approach with a strategy that includes a globally diversified
portfolio, low fees, and regular rebalancing between asset classes.
This type of "institutional-grade" investment strategy has produced
5-year cumulative returns of between 34% and 53%.
According to Rebalance IRA Managing Partner Scott Puritz, producing
original videos for YouTube represented an effective way to bring
this investment philosophy to a broad audience. "We want all
investors to have access to the deep experience and fundamental
insights of Burt, Charley and Jay. We thought that it was appropriate
that the Center's first project is aimed at sharing those insights
with investors everywhere. "
About The Center for Retirement Investing
The Center for Retirement
Investing is an educational project dedicated to enhancing financial
literacy and helping everyday Americans better manage their saving
for retirement. Ivy League professors and prestigious finance
industry experts translate the complexities of modern investing into
easy-to-understand concepts and actionable advice: keep fees low, be
globally diversified, and rebalance among asset classes.
The Center's "faculty" includes legendary investing experts:
Professor Burton Malkiel -- emeritus Princeton economics professor,
former board member at Vanguard, and author of the classic investment
book, A Random Walk Down Wall Street.
Dr. Charles Ellis -- former board member of Vanguard, Chairman of the
Investment Committee of the famed Yale University Endowment, and
Harvard Business School instructor.
Jay Vivian -- former Managing Director of IBM's Retirement Funds,
responsible for over $135 billion in IBM investment funds for more
than 400,000 employees worldwide.
The Center for Retirement Investing, sponsored by retirement advisory
firm Rebalance IRA, offers video interviews on its YouTube Channel,
and more in-depth curriculum on its website:
YouTube Channel: https://www.youtube.com/user/retirementinvesting
About Rebalance IRA
Rebalance IRA is an SEC Registered Investment
Advisor that manages client IRA accounts as low as $75,000 at Charles
Schwab and Fidelity. With an innovative business model that leverages
advanced technology, Rebalance IRA provides low-cost, high quality
one-on-one retirement advice using sophisticated investment
management methods. For more information visit: www.rebalance-ira.com
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