A Rich Life

The Old Ideas on Saving & Investing Don't Work -- Here's What Does

Joachim Klement, CIO at Wellershoff & Partners, Inc.: “Approach the Journal of Financial Planning as a Journalist and Offer to Write a Series of Three Articles on the Topic of Long-Term Market Timing and the Impact on Retirement Planning”

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I’ve been e-mail numerous people to let them know about my article reporting on The Silencing of Academic Researcher Wade Pfau by The Buy-and-Hold Mafia.

Yesterday’s blog entry reported on my correspondence with Joachim Klement, Chief Investment Officer at Wellershoff & Partners, Ltd. Set forth below is Joachim’s response to the e-mail of mine described in the earlier blog entry:

Hi Rob
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Sorry for not getting back earlier, but times are very busy these days.
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Just a few thoughts: I think that the CFP certificants could be a good place to start. I don’t think mass emailing to the members of the CFP organization will work.
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But the Journal of Financial Planning is widely read amongst practitioners and this Journal is constantly looking for contributions that are relevant to practitioners.
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My suggestion would be that you approach them as a journalist and offer them to write an article or even better a series of three articles or so on the topic of long-term stock market timing and the impact on retirement planning.
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I think they would be quite open to that.
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Best regards
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Joachim
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I wrote back:
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Joachim:

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Thanks very much. You’ve been a huge help.
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I especially like the Journal of Financial Planning idea. I am going to start thinking through that one of my walk today.
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Please take good care.
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Rob

Academic Researcher Wade Pfau Was Dejected When the Editors of a Journal Rejected his Maximum Withdrawal Rate Research on Grounds that “They Just Don’t Like the Whole Literature About 4 Percent Rules. They Think That William Sharpe Already Solved This With His 2009 Paper.”

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Yesterday’s blog entry reported on an e-mail that Academic Researcher Wade Pfau sent me on March 4, 2011. I next received an e-mail from Wade on March 10, 2011.

Wade said that he had now done research on how Valuation-Informed Indexing worked in Japan and that it showed that “Valuation-Informed Indexing worked fine in Japan as well.” He commented: “This was the big test, as valuations took a wild ride there” (Wade explained that the P/E10 level rose to nearly 100 by the start of 1990. He noted that several Bogleheads had brought up Japan in his discussions with them.

He sent me an advance copy of his paper on the Fisher and Statman research.

He asked for me to let him know the year that The Retirement Risk Evaluator was published so that he could provide citations to it in his research. He also asked whether I should be referred to as the sole creator of the calculator or as a co-creator with John Walter Russell.

He said that he had heard from the Journal of Financial Planning that it would be publishing a safe savings rate paper.

He also reported on a discouraging reaction to his maximum-withdrawal-rate research from another journal. Wade said: “The referee comments left me a bit dejected.” He explained that the editors did not object to the valuations component of the research but “they just don’t like the whole literature about 4 percent rules.” He added: “They think that William Sharpe already solved this with his 2009 paper, though I don’t know what the solution is. “