Perspectives from the Path
When Luck Runs Out - The Success Rate of Active Management
The success rate for active managers has not been very good. In fact, it has been downright awful. It is really hard to beat an index. If you or your advisor are pursuing traditional active management, you’ll need to depend on some serious luck. The decisions you or your financial advisor make around the types of managers and investment strategies you invest in can make a big difference in your long-term returns.
Back to the Investment Basics: Remembering Summers Past
There were so many big events competing for our attention this summer. It is important to remember that we are inherently biased to pay more attention to recent alarms than long-term trends. As an investor, if you overemphasize the news that looms the largest, you’re far more likely to damage your investments than do them any favors.
Why Hold Bonds?
If interest rates are going to continue to rise, does investing in bonds make any sense? Here are 6 reasons to continue to invest in bonds.
Think Beyond the S&P 500 - Now More Than Ever
With the S&P 500 hitting all-time highs in 2021, why not just keep investing in what’s winning? Why take on the risks of other markets when everything is so good with the S&P?
The Private Investment Opportunity
Private investments continue to play a larger role in the investment universe. In this blog, we share overviews of 2 private investment markets - private credit and private equity.
Divergent Expectations
There is a 161% gap in return expectations between individual investors and financial professionals. We examine real, historical returns to see a better investment perspective.
2021 Tax Changes: What We Know Now (Updated)
Here's what we know now about 2021 tax changes - how can you optimize now?
Pointillism Part 2: We Now See the Bigger Picture in Last Year's Markets
Around this time last year, COVID-19 was officially declared a global pandemic and the markets plummeted 30%. We reminded our clients and readers at that time to focus on the bigger perspective. Now, one year later, we can see the market correction in a larger context. What lessons should we learn?
The Biden Tax Plan and You
The Biden Administration has proposed several tax law adjustments. With a Democratic sweep, we can expect many of these changes to take place. These include potential increased corporate tax rates, lowered estate tax exemptions, elimination of Step-Up in basis, capital gains tax rates, and more. Be watchful of changes and adjust your estate plan and investing goals accordingly. This could be one of the most important planning years ever!
Book Review: The Behavior Gap by Carl Richards
We are all limited by our own behavior that may not be rational. When we are aware of our tendencies and we have the right checks in place, we can implement the necessary measures to avoid making costly mistakes.
2020 Forecasting Follies
For the past several years, we have looked back at the market forecasts provided by the economists of the major banks. This year, we take a look at not just the original forecasts for 2020, but also how the forecasts changed in the midst of COVID-19, and how you should respond to these “expert” predictions.
Barbell the Roths: How and When to Utilize Roth IRAs
If you're planning a Roth conversion or evaluating the tax implications of Roth contributions, consider the barbell strategy for your retirement planning.
Book Review: Psychology of Money by Morgan Housel
In The Psychology of Money, Housel cleverly describes what he sees as the biggest issues affecting investment success – our own psychology and human nature.
Top Lessons from 2020
2020 will certainly be remembered for many historical events. Here are 7 lessons that investors can learn from the year 2020.
2020 Year-End Planning Guide
How should you prep for 2021? Here's our guide for retirement, tax, and investment considerations as you consider 2020 year-end planning.
Gratitude: An Investment with Great Returns
With the holiday season, there is often increased anxiety and stress, yet it is a time when we are encouraged to have gratitude.
Presidential Election and Your Asset Allocation
Should you change your investment allocation with the upcoming election? Let's take a look at historical & current data of markets & politics.
Unreliable Stars and Past Performance
“Star-rating” or similar ranking systems have been popularized by Morningstar and Lipper. Should you use these when selecting a fund?
Surprised by Risk? The Danger of Chasing Yield
What is yield chasing? Why is it dangerous? Investors take on extra risk for extra yields, putting their portfolio in danger when downturns come. A diversified, balanced portfolio is key.
Is Value Investing Dead? A "Cliff Note" on Cliff's Note
Does value investing still matter or is it dead? The valuation gap between growth stocks and value stocks is at historical levels as growth has outperformed value for 10+ years.