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A sound investment plan isn’t the only way to find financial security. Earlier this week, we looked at the importance of incorporating different types of risk—specifically, human capital risk—into an overall financial plan. Today I will focus on mortality and longevity risk, and using “tax alpha” strategies to improve the odds of achieving your financial goals….
Helping aging parents with their finances. Role reversal: If you have aging parents, they may need help sorting out their finances. Stuart Vick Smith lays out some steps you can take to help them feel in control of their financial life. Find it on KVUE.com By clicking on any of the links above, you acknowledge…
Larry Swedroe on how the risk of private equity doesn’t always equal higher returns. The term “private equity” is used to describe various types (e.g., buyout funds and venture capital funds) of privately placed (nonpublicly traded) investments. Even though buyout (BO) funds and venture capital (VC) funds have similar organizational and compensation structures, they are…
The value of your labor should be considered when making investments. When designing an investment plan and deciding on the appropriate asset allocation, you should make sure to consider your unique ability, willingness and need to take risk. The latter two considerations are fairly straightforward. The more “stomach acid” you can absorb during bear markets…
Answering the age-old question of “What is enough?” with Manisha Thakor and Kate Levinson in MoneyZen podcast. How do you answer that age-old question: What is enough? Manisha Thakor poses the question to Dr. Kate Levinson, a licensed therapist who has spent more than 20 years studying the interface of money and psychology. By clicking…
Larry Swedroe reviews the evidence on how political biases can affect your investing. “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light,…
Larry Swedroe on how a systematic approach can help mitigate the problem. The typical hedge fund fee structure includes a management fee, calculated as a fixed percentage of a fund’s net asset value, plus an incentive fee, calculated as a percentage of its trading profits. Some hedge funds use both hurdle rates and a high-water-mark…
Tim Maurer asks 12 thought leaders for techniques to stop the cycle of “busyness.” It’s old news that we’re busy and that we wear our busyness as a badge of honor. But a new study found that Americans, in particular, are actually buying it. Specifically, the study concluded that Americans who always say they’re “busy” are actually seen…
Manisha Thakor on the importance of building relationships in financial planning. The best financial relationships occur when your wealth advisor is interested not just in investing your money, but in investing in your life. Manisha Thakor on helping clients achieve financial clarity, calm and confidence through the process of true wealth management. By clicking on…
Larry Swedroe checks the research on socially responsible vs. “vice” investing. Socially responsible investing (SRI) has been referred to as “double-bottom-line” investing. The implication is that investors are seeking not only profitable investments, but investments that meet their personal standards. For instance, some investors don’t want their money to support companies that sell tobacco products,…
Tim Maurer on the irony (or not) of fiduciaries supporting a fiduciary rule. The Trump administration’s move to delay implementation of the Department of Labor’s fiduciary rule has inspired me to delay implementation of my commitment to remain silent on matters of public policy and politics. It’s that important. It seems pretty obvious that those…
Manisha Thakor brings Buckingham’s Steve Weiss on the MoneyZen Podcast to discuss some of the ins and outs of Social Security. Manisha Thakor brings Buckingham’s Steve Weiss on the MoneyZen Podcast to discuss some of the ins and outs of Social Security, including strategies for claiming benefits and optimizing them to fit your life and financial…
Feedback on investment decisions helps improve investor performance: Larry Swedroe unpacks the research. It’s been well documented that, on average, retail investors are “dumb” money. For example, on average, the stocks they buy go on to underperform, and the stocks they sell go on to outperform. Sadly, investors even manage to underperform the very mutual…
Turns out the “smart money” often isn’t. Larry Swedroe on who, exactly, exploits market anomalies. Institutional investors are generally considered “smart money” that exploits the behavioral biases of “dumb” retail money. However, there have been some holes poked in that idea recently. For instance, Roger Edelen, Ozgur Ince and Gregory Kadlec, authors of the study…
Larry Swedroe compiles his list of financial predictions to watch for the year. Every year, I like to keep track of the predictions “gurus” and other market observers make for the upcoming year, specifically the ones they say are “sure things.” It seems like no one in the financial media holds them accountable (which is…