Perspectives from the Path
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 Should I Invest Globally?
“Since US stocks are doing so well, why should anyone hold international stocks?” Here are at least six reasons to keep a global focus when investing.
Investment Products That Make Me Cringe
In this blog, I dive into common “investment products” that have disappointed many investors, particularly when shown alternative solutions.
Higher Calling - To Protect
A critical role that our industry can play is to protect clients from value-destroying actions and ill-thought out investments.
Higher Calling - To Serve
It would do well for financial and wealth managers to study servant leadership. Advisers have the responsibility to serve their clients well.
Top 10 Good/Bad Things in 2018
We tend to get focused on one side of the coin or the other, yet few things are that clear. Investing takes time, perspective, and patience. Each year, there are good things and bad things, still, the world doesn’t end. Here are the top 10 good/bad things of 2018.
Are You Getting Queasy with These Markets?
With the recent market swells, I imagine many of you are feeling some queasiness. It’s important to keep a long-term focus as you invest.
Does Your "Advisor" Work For You?: Questions You Can Ask to Find Out
Most people assume their investment “advisor” is obligated to put their interests first. Unfortunately, this is not always the case. Here are some questions to consider to get more assurance that your advisor is working for you.
The Retirement Gender Gap
Women are 80% more likely than men to be impoverished in retirement. What are the reasons for this retirement gender gap and how we can close the gap?
Risk Controls for the Increasingly Nervous
A few market gyrations or some major stock declines in popular technology stocks will get you thinking about risk again. Here are some reminders on risk and its role in investing; and how you can manage it.
Private Equity: A World of Opportunity?
What is private equity? Is it worth the complexity and how can it fit in your portfolio?
You Might Have a Behavioral Bias if...
5 common investor biases are overconfidence bias, self-attribution bias, mental accounting, loss aversion bias, and home bias. How will you overcome your behavioral biases? Or will they negatively impact your portfolio?
Bursting the Bondholder's Bubble: The Truth About Coupons
Don’t let those bond managers sell you on coupons alone! You need to know what you paid, the likelihood of getting future coupon payments and the par value, and how long until you get the par value back. Knowing these details allows you to effectively evaluate your bond and/or manager.
Gambling on Active Management? The Odds are Against You.
It is really hard to beat an index. If you or your adviser are pursuing traditional active management, the odds are stacked against you winning. Passive management has been growing in recent years for this reason.
We Are Our Own Worst Enemies: The High Cost of Emotional Decision Making
Many of us fall victim to behavioral biases and emotional-decision making. But the evidence says that ETFs and index funds are more efficient than high-cost, actively managed funds.
Investors Wasted Half a Trillion Dollars Trying to Beat the Market
According to our rough analysis, over the past decade, mutual fund investors wasted about half a trillion dollars on unrewarded active management expenses.
The Cost of Unnecessary Complexity… and How to Avoid It
Our intellectual curiosity drives us to understand the complexities of financial instruments and estate planning tools that provide real advantages, but from there we aim to protect you from unnecessary complexity and keep our solutions understandable, measurable, and affordable.
The Evolution of ETFs
How have exchange-traded funds (ETFs) changed over the past 25 years? Here’s the good, the great, and the god-awful of ETFs.
Book Review: The Incredible Shrinking Alpha
Active management is a loser’s game, which will only get tougher to win going forward. Swedroe and Berkin dive into the de4creasing pool of available alpha in their book, “The Incredible Shrinking Alpha.” Read our review.