Seven Bullet Points to Address Investor Client Standard of Care
The financial advice industry has long been separated between 1) Registered Investment Advisor firms (RIAs), which operate under the Investment Advisers Act of 1940 and whose representatives’ duty is to deliver investment advice, and 2) Broker-Dealers, whose representatives are in the business of selling financial products. Previously, there was a clear distinction between the standard […]
U.S. News & World Report: Ian Post on “7 Ways Millennials Are Becoming Great Investors”
Read Ian’s comments in a recent U.S. News & World Report article that looks at what we can learn from the way Millennials invest… Millennials know to start saving early. The best thing you can do for your investments is start early. “Through compounding and time, investors can grow their wealth by saving and investing […]
Investors Are Usually Wrong
In a recent New York Times article, Jeff Sommer, discussed the implications of new data from Dalbar, a research firm that studies the behavior of mutual fund investors. Their latest research shows that over the past 10 years, stock investors under-performed the S&P 500 by 3.4% per year (13.1% vs 9.7%) and bond investors under-performed […]
Interest Rate Changes and Stock Returns – A Way to Actively Position Stock Portfolios?
Jerome Powell, Chair of the Federal Reserve recently signaled the Fed’s readiness to cut the target for short term interest rates (federal funds rate) at the next meeting on July 30th and 31st. According to the Federal Reserve Bank of Atlanta, as of 7/19/19, the federal fund futures markets predict a 96.79% chance of a […]
The Guru and The Investor: Act 2 – The Evidence-Based Advisor Strikes Back
Act Two The Setting Following his interview of a hedge-fund manager to see if he should manage his retirement assets, the Investor turns his search to a different type of advisor, for a philosophy based on something called ‘evidence-based investing’. This seemingly outlandish idea is grounded in the findings of academic research in finance to […]
The Evidence is in (Again). Indexing Beats Active Management.
S&P Dow Jones Indices released their latest SPIVA (S&P Index vs Active) scorecard for the period ending December 2018. If you’re a fan of active fund managers, the news is not good. Following are some quick data points and a video from NBR with Bob Pisani detailing the results: For the ninth consecutive year, the […]
The Guru and The Investor: A Hedge Fund Story
Act One The Setting Guru appears on CNBC to explain what will happen with interest rates, Brexit, and the economy over the next two years. Investor sees Guru on TV and assumes that CNBC would only have people on their shows who knew what they were talking about. Needing a place to invest money for […]
Déjà Vu All Over Again
Investment fads do not lead to investment success. Discipline to a long-term investment strategy is the key. This post from Dimensional Fund Advisors offers a compelling rebuttal of past investment fads and an alternative investment approach driven by evidence and academic research…
John Bogle, Founder of Vanguard and Pioneer of Index Investing, Passes Away
John (Jack) Bogle passed away this week at the age of 89. The founder of Vanguard was instrumental in the rise of index and low-cost investing. His efforts positively impacted the lives of millions of investors. David Booth, founder of Dimensional Fund Advisors, offers some thoughts on Jack in the following brief video.
Five Money Saving 2018 Year-End Tax Tips
As we approach the end of the year and begin making plans for 2019, it is an ideal time to take advantage of tax saving opportunities that are still available for 2018. Here are five ways to reduce your tax obligations before year-end. 401k/403b/457 Plans – Max out your employer retirement plan: For 2018, you […]