Parenting Your Wealth in Uncertain Times

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parenting

In the face of political drama at home and violence abroad, it’s certainly been a summer for trying our patience, hasn’t it? For anyone who has ever been a parent or a child – that is, for everyone – there are several comparisons we can draw between good parenting and good wealth management. For both, plenty of patience is one of the most important qualities to embrace.

Patience Is Your Greatest Strength

As an ...

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Brexit Fears and the Capital Markets

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brexit

As a kid in school we learned the “sun never sets on the British empire”; fast forward this coming week we await a Brexit vote for secession from the European Union (EU). The opinion polls show a slight edge to the British exit while the bookies favor continued membership. While no one knows how the vote will turn out one of our ...

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Survivorship Bias

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statistical liesAs the famous quote by Prime Minister Benjamin Disraeli states:  “There are three kinds of lies – lies, damned lies, and statistics”. In this installment of Financial TIPs we will focus on the third type of “lie”, statistics. One trick of the trade we must watch for when accepting or rejecting a performance analysis is survivorship bias; using statistics to mislead.

What ...

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Our Relationship with Investment Risk

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investment risk

 

Is investing riskier than usual these days? In our experience, probably not. It just feels that way because of the constant bombardment of information. If there is such a thing as “normal” in this world of ours, risk is certainly built into the definition.

In Morningstar’s Quarterly Economic Commentary, Francisco Torralba, Ph.D., CFA described the [f]inancial markets as having lived in a heightened ...

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Fixed Income Investing: Avoid Chasing Yield

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yield curve

In a recent Financial TIP series, “Investing for Retirement Income,” we covered the reasons why we do not recommend fully shifting into high-yield (“junk”) bonds or dividend-yielding stocks when higher-quality bonds aren’t delivering as hoped for. Rather than stretching for extra yield with stand-alone solutions, we typically suggest taking a total-return approach, seeking an appropriate risk/reward balance among all sources for earning and preserving ...

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DOL Fiduciary Ruling

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Fiduciary RuleWhen a hard-won historic milestone is achieved, it’s usually front-page news: Apollo 11’s “one giant leap for mankind.” The fall of the Berlin Wall. Martin Luther King’s “I have a dream.” … Last week’s fiduciary ruling by the Department of Labor (DOL).

About that last one. If you heard the news, you probably spotted it in the business section or on a financial newsfeed. Not quite a watershed day in the history ...

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Investing for Retirement Income: Part III: Total-Return Investing

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pie-chart

 

As we’ve discussed in the first two parts of this three-part series, we do not recommend turning solely to dividend-yielding stocks or high-yield (“junk”) bonds to support your retirement income, even in low-yield environments. So what do we recommend? Today we’ll answer that question by describing total-return investing.

PART III: TOTAL-RETURN INVESTING FOR SOLID CONSTRUCTION

If you think it through, there are three essential variables that ...

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Investing for Retirement Income: Part I: Dividend-Yielding Stocks

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pie-chart

 

 

 

 

If ever there were an appropriate analogy for how to invest for retirement, it would be the classic fable of The Three Little Pigs. As you may recall, those three little pigs tried three different structures to protect against the Big Bad Wolf. Similarly, there are at least three kinds of “building materials” that investors typically employ as they try to prevent today’s ...

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Are You Receiving Good Financial Advice?

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advice magglass

 

We need to rethink traditional financial advice – the kind that’s been delivered by those so-called “experts” focused on issuing buy/sell recommendations, executing transactions, selling annuities and collecting their commissions. If this is the type of financial advice that you are receiving you don’t need that and you probably never did. This most often received financial advice from a broker is full ...

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2015 Review: Economy & Markets

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US_Stock_Market_Performance 2015_Russell_3000

 

 

 

 

 

 

 

 

The US economy and broad market showed modest gains during the year, although investor discipline was tested by news of a global economic slowdown, rising market volatility in China and emerging markets, falling oil and commodities prices, and higher US interest rates.

The S&P 500 Index logged a 1.38% total return. The returns across US indices were mixed, but overall the broad US market, as measured by the Russell 3000, gained ...

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