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Information Visit ESPlannerBASIC which asks what you earn, what you spend, and how your financial obligations will change over time. (For example, when will your youngest kid graduate?) It then assumes that you’ll want your family to maintain the same living standard from today on, and figures out how much you can afford to spend, [...] Read more » The cost of long-term care can destroy net worth and a lifetime of savings. It’s difficult, but not impossible, to do estate planning that protects assets from long-term care costs. One option is to use an irrevocable income-only trust in situations where the objective is to pass on a house or other asset to a child. By [...] Read more » Using an ETF strategy may help you achieve better investment returns than the overall market. Start by buying ETFs that mimic broad indexes. Then use 200-day moving averages and sector rotation shifts to balance and rebalance your portfolio as needed – not daily, but at least several times a year. This is what large investment firms can’t do, for [...] Read more » Every portfolio should contain exposure to international equities to take advantage of growth and currency opportunities. As investors go international, they should look beyond the usual emerging markets. Here, Forbes contributor Alexandra Zendrian advises us on how we should approach the use of emerging market equities within your international equities asset class: “Emerging markets” has become an unfortunate [...] Read more » Is gold the best investment for protection against inflation. Here’s an excerpt from an insightful post by Bloomberg columnist Matthew Lynn. Dec. 8 (Bloomberg) — Economic chaos? The dollar crumbling? Central banks printing money like crazy? Gold ingots In reality, while investors are right to be nervous about inflation, maybe they are catching on that it’s wrong to [...] Read more » If you are maxing out your 401(k), IRA and any tax-deferred or tax-exempt retirement account, or you want to diversify across taxable and non-taxable holdings, you are in luck. Fortunately, there are other investments out there with reasonable fees that also offer some tax benefits that can give you a better after-tax return for funds that [...] Read more » Alice Schroeder, Bloomberg columnist, wrote about the Wall Street proclivity to stretch for alpha – the desire to get investment returns that beat the market. This stretch for alpha stretches past moral bounds, illegally using insider information to get that edge. “The goal of investing is to get an edge, whereas the securities laws presume all [...] Read more » Investments and Psychology Traditional concepts of finance are built upon the idea of efficient markets in which investors are rational, unbiased, logical, and risk-averse. When investors act in accord with these qualities, a stock’s price equals its value, and no trading strategy should beat the market. For decades, psychologists have been studying human decision-making. And contrary to [...] Read more » When markets turn volatile adapt to the changing conditions by adopting rules that can carry your investments through turbulent times. Too many people get distracted by benchmarks, well-meaning friends, media reports or information from people that know nothing about them. They forget why they are investing in the first place. The clearer and more specific one is [...] Read more » Diversification across asset classes can allow our asset allocation to protect us from more than volatility – it can protect us from our emotions. Sometimes we are afraid of what the markets are doing or might do and, as a result, we want to pull our funds out of the market. The best approach in uncertain times [...] Read more » You can manage risk through diversification. Today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio’s long-term success. The right mix of stocks, bonds and cash – aligned to our particular risk tolerance and investment objective – is very important. Age-appropriate rebalancing is also [...] Read more » Market timing makes more sense with individual stocks. Three out of four stocks move in the same direction as the market. And a stock can dart way above or way below the market average. Failing to trade in step with the market can be ruinous to those not committed to keeping losses small. A stock can [...] Read more » One of the most fundamental decisions an investor must make is whether to “buy and hold” their investments or to make active asset allocation changes as their perceptions of the markets change. We think “buy and hold” works for many investors who don’t have time, temperament or talent to manage and reshuffle their assets [...] Read more » |
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