Press and web stories illustrating ACT courses


Real-life articles relevant to the courses  

0% Long-term yield after inflation, taxes, fees (ACT230,  ACT240)
FT blog Mar 19, 2012: Wolf on near-zero real rates, cause of many of our woes
WSJ Oct 25, 2010 on negative  real yield TIPS
 Zweig in WSJ Jan 16, 2010 on 1% + net net net yield  
Zvi Bodie on PBS June 12, 2009: risky to assume stocks will beat inflation-indexed bonds
Brad De Long Oct 2008 on zero 10 year real return on stocks (even without taxes and fees)

Since the 1970s, one dollar has decreased a lot in purchasing power. Sexism has reduced, too.

Shorts (ACT245, ACT349)
FT (Financial Times, UK) July 16, 2008 on short squeeze and 'hard to borrow'
WSJ May 16, 2008 on bubbles, housing, Chinese Class A and B shares

Mortgages (ACT230, ACT240)
Walk Away mortgage calculator April 2009   Many problems with this, starting with lack of discounting of future payments
Bank of Montreal October 2008: semi-annual compounding of martgage
Toronto Star Jan 29, 2008 on 33 year mortgage impact on monthly payment

Repos (ACT245)

WSJ Mar 18, 2008 on repos and the Mar 16, 2008  Bear Stearns rescue

Futures, forwards and options (ACT245, ACT349)
Globe Aug 10, 2010 on Manulife actuaries' $2 billion loss (actuaries might disagree)

Swaps (ACT245, ACT349)
Globe and Mail US Futures quotes
Toronto  Gas
Toronto Home Gas Supply Commodity Swap
Toronto gas price quarterly change
Bloomberg Feb 23, 2010 on Italy's profit on swaps


Retirement savings (ACT230, ACT239, ACT240)
WSJ Feb 8, 2012 on 4% drawdown rule
Financial TImes Aug 12, 2009 UK Inflation-Indexed ('RPI") annuity purchase rates
T Star Mar 16, 2009 Malcolm Hamilton: 30% of pay for federal retirement

T Star Oct 28, 2008 on 4 percent drawdown rate
T Star Apr 2, 2008 on Ontario Teachers' Pension Plan  p1 p2. 

Above from Globe and Mail comments May 25, 2012

$40,000 per year indexed worth $850,000
Necessary retirement savings rate calculator for these ACT courses in Excel     PDF version
Example of frequently-seen bad advice on savings
Retirement calculator from AARP One of the best available online.
T Star June 21, 2007 save 33% of pay for retirement

Or a non-indexed pensioner can be job-hunting at age 80 after 30 years inflation at only 3%:  1.03-30=0.412

Credit cards and nominal interest rates (ACT230, ACT240)
MBNA Mastercard application 17.99% per annum: what convertibility period?

WSJ March 12, 2009 How credit card companies see us as potential profit sources 

Bonds (ACT230, ACT240, ACT349)
Time Sep 7, 2011 recommending  TIPS at 1.6% real yield
WSJ Feb 21, 2008 on TIPS - do you agree with his belief that 1.5% risk-free real is uncompetitive? It's controversial.