As I discussed in a previous article, Dimensional and Vanguard are similar but are different in some key respects. While neither fund family relies on forecasting or individual security analysis, Vanguard funds are index funds while Dimensional funds are not. Both fund families are great options for investors. However, Dimensional provides several advantages that may…
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Vanguard and Dimensional Fund Advisors (Dimensional) both offer mutual funds that provide investors with broad exposure to various asset classes at a very low cost. However, there are important differences between the two fund families. But first, let’s start with a bit of history… Vanguard introduced the Vanguard 500 fund in 1975, becoming one of…
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I had a discussion with someone about the recent stock market decline and he observed that despite the drop in stock prices, corporations seemed to be healthy and were still making lots of profits. He then said: “That’s what I don’t get. How can the market go down so far and so fast, when nothing…
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Interest rates and bonds prices are inversely related; when interest rates rise, the value of a bond falls. Given that rates on US Treasury Bonds have climbed to levels we have not seen since 2011, bond prices are down year to date. As of November 1, 2018, the YTD returns on the Vanguard Total Bond…
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Most of us have heard of asset allocation – the process of dividing a portfolio’s assets across various parts of the market according to an investment plan that takes into account an investors goals and risk tolerance. Asset location, on the other hand, is a tax minimization strategy that takes into account how different…
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One of the major changes that were made to the tax code by the Tax Cuts and Jobs Act of 2017 was the expansion of the Standard Deduction to $12,000 for individuals and $24,000 for married couples. This means that going forward, many more taxpayers will be taking the standard deduction rather than itemizing.
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One of the major changes resulting from the passage of the Tax Cuts and Jobs Act was the elimination of all miscellaneous itemized deductions. This category of deductions included unreimbursed job expenses, tax preparation fees, and investment advisory fees.
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Whether the market is in a bit of turmoil or when it has been performing quite well, it’s important to revisit some of the common behavioral mistakes that can potentially derail even the most well thought out financial plans. Below are six behaviors that we should all look to avoid. Fear and Panic Perhaps the…
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By now, you’ve probably heard the news: our own behavioral biases are often the greatest threat to our financial well-being. As investors, we leap before we look. We stay when we should go. We cringe at the very risks that are expected to generate our greatest rewards. All the while, we rush into nearly every…
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A 401k plan can be a wonderful benefit to offer employees as well as a great way for a business owner to reduce taxes. Unfortunately, many plans are too complicated, too costly, and offer little to no advice, education or help to plan participants. As a result, these plans have been a failure in helping…
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