There are many statements that we use in our lives that guide us day to day. They serve us well in most aspects, but serve our heads on a platter when it comes to investing.
Let’s take a look at a few and find out why.
A couple of years ago, before my son turned 8, we sat down and discussed how to make money grow. I wrote about the portfolio he designed.
Well, now that Kevin is 10, let’s take a look at how his portfolio is doing.
My columns often address the lower returns you will likely achieve with expensive mutual funds or managed accounts. This month, I’m going to show you why building your future through life insurance investing is likely to be even worse.
My focus will be on what is known as whole life insurance. Let me just say that buying “permanent insurance” with a cash surrender does bring a sense of security. Especially when you compare it to something called “term insurance,” which is not permanent and is likely to expire without you ever collecting a dime.
Why do investors buy into the market after stocks have gone up, and panic and sell after they drop? Why do otherwise intelligent people make really bad money mistakes?
Until recently, my best source for addressing these dynamics has been through the emerging science of behavioral finance. So I was particularly excited about a new book that just came out about neuroeconomics, which goes even further by explaining not only why, but also how our brain works making decisions.
There are shelves of books out there that claim to be able to teach us the keys to financial success, and sometimes we can learn the most from books that give us bad advice.
This month’s column is about two books that I found gave particularly bad, not to mention dangerous, advice. They are “Missed Fortune 101” and “LEAP (Lifetime Economic Acceleration Process)”.
I recently traveled to Las Vegas to see a show. Not Celine, or the latest Cirque or even those guys with the blue heads. I went for The Money Show.
The Money Show is an event where thousands of investors and hundreds of financial providers converge. I thought I’d see what’s new.
I’ve written a thing or two about managing risk through asset allocation. But, did you know that managing the location of the assets is nearly as important?
Doing it right is guaranteed to result in greater growth of your portfolio, no matter what crazy ride the market takes us on. And a guaranteed higher return is something that falls under the “low hanging fruit” category, because it’s such easy pickings.
These days we hear a lot about people who preach one thing and practice something quite different.
It got me thinking that maybe some people are wondering if I actually practice what I preach. You know, my sermons — low-cost, tax-efficient, diversified investing. Just saying “yes” doesn’t exactly ring with conviction.
Does earning between 6 percent and 7 percent on your cash with the backing of the U.S. government sound too good to be true? It isn’t!
Although the little guy is at a huge disadvantage when it comes to beating the stock market, the tables are turned when it comes to fixed income. The small investor can get thousands more every year than is available to large institutions.
Last fall, I had the honor of “doing lunch” with Jack Bogle, founder of Vanguard and pioneer of the index fund. As we walked by the full-sized bronze statue of Bogle on the Vanguard campus, I couldn’t help but realize that I was in the presence of a living legend.
We talked about his upcoming book “The Little Book of Common Sense Investing.” I was fortunate enough to get an advanced copy, which just might make you think twice about the way you invest.