Mint.com – The Evolution of Personal Financial Software on the Web
Most successful investors start out as diligent savers. Saving is the tried and true path to reach your financial goals. For young people, the goal may be a car, a trip or an education. As we get older our goals expand to include buying a home, starting a family, paying for a child’s education and […]
Market Update
The second quarter of 2011 provided a rollercoaster ride in the stock market that will look uneventful in the history books. April was a strong month for the market, but by mid-June the S&P 500 had fallen more than 7% from its April high, erasing the first quarter gains and falling back to where it […]
The Folly of Active Management and TV Gurus
Last year I wrote an article about where to invest in 2010 and took that opportunity to remind investors not to fall into the excitement of active management and stock trading. Instead I cautioned them to focus on what you can control, like investment cost, risk, and asset allocation and to ignore the rest. So […]
Walmart Vs. Gold – How Will Investors be Rewarded?
Capital Market Recap Investors experienced positive returns in virtually every asset class during the first quarter of 2011. Small U.S. stocks led the way with returns exceeding 8%. Emerging international markets were in negative territory for most of the quarter but ended in the black. Large company stocks around the world managed to shrug off […]
Investing is for Optimists
“we are becoming healthier, cleaner, smarter, kinder, happier, and more peaceful”
Tales from the Tax Prep Front Lines
Tax preparation gives interesting insight about personal financial situations. Here are some examples. Last year an elderly lady brought her tax documents to the AARP Volunteer Tax Service for preparation. Her 1099s, etc. were not well organized, but appeared to be adequate. She, herself, was a little disorganized, and not entirely comfortable with what she […]
Investing for Retirement Income – Part 2
One of today’s biggest challenges facing investors in retirement or in semi-retirement is obtaining enough income and growth from their portfolio to match annual expenses. Is it possible to create a mix of steady income, upside potential and longevity protection by a blend of 80 percent bonds and 20 percent stocks? My definition of income […]
Combating Investor Overconfidence
In my discussions with clients and prospects, one of the recurring themes is how, as their investment advisor, I can best provide advice contrary to their bias, intuition, or reaction to current business/economic events. An example is the current investor bias toward equities since the stock market has performed so well recently and bonds are […]
Investing for Retirement Income – Part 1
A sense of security comes from seeing a regular monthly income from your investment portfolio. Especially when one is retired or is dependent on investment income to meet everyday expenses. In the investment community, bonds are considered second class citizens. Investors are told that holding bond funds is done primarily to reduce the overall portfolio […]
Dimensional Fund Advisors (DFA) in the New York Times
Ron Lieber, of the New York Times, profiles Dimensional Fund Advisors in a recent article. The funds offered by DFA are only available to investors through approved fee only investment advisors. We recommend DFA funds in many of our client’s portfolios. You can find the article here: Your Money: Finding Success, Passionate Followers in Tow […]