Let’s face it, much of the traditional financial services industry has failed to serve investors properly. A sales-driven culture and an active-management investment model has left investors frustrated and wondering if there is a better way.
DetailsAn investment portfolio with a mix of stocks and bonds will produce three types of investment return: interest, dividends and capital gains. Added together, they make up what is known as “total return”. Inside an IRA or other qualified account, the relative mix of investment return does not matter. A 5% return is a 5% return, regardless of whether it comes from interest, dividends or capital gains. In a taxable investment account, however, the story is much different.
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The Wall Street Journal’s Jason Zweig offers a humorous, cynical and insightful look into the financial industry and the world of investing in his new book The Devil’s Financial Dictionary. As described by TIME: “Part social commentary, part instruction manual, Zweig’s book is must-reading for anyone who presumes or desires to understand the investment world….…
DetailsOn December 18th, Congress and the President once again agreed to a deal on the tax “extenders” that had expired at the end of 2014 in a piece of legislation called the Protecting Americans from Tax Hikes (PATH) Act of 2015. However, unlike past tax extenders legislation which would extend these provisions for only a…
DetailsWhenever the market is in a bit of turmoil, it’s important to revisit some of the common behavioral mistakes that can potentially derail even the most well thought out financial plans. Below I discuss six mistakes that we should all look to avoid. Fear and panic: Perhaps the most costly and pervasive of all behavioral…
DetailsThe quarter three numbers are in, and the S&P 500 index finished down just over 6%, while non-US markets finished down more than 10%. The end of August was particularly bumpy, when amidst of headlines of a Chinese stock market crash, looming Fed rate hikes, and fears of an earnings slowdown in the U.S. the…
DetailsWhile there is no official definition, a bear market has traditionally been defined as a 20% decline in a broad stock market index. Needless to say, bear markets can be horrifying. Not only because of the pain of seeing account balances go lower and lower, but because bear markets are often accompanied by a general sense of…
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In a previous article, we discussed the idea that a properly diversified portfolio provides investors with an effective tool for reducing risk and volatility, without necessarily giving up a return. Below is an example of how diversification across asset classes really works. Let’s compare two blended index portfolios for the 20 year period ending December 31,…
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