Many investors still choose active management, despite the fact that it’s becoming even more of a loser’s game as time marches on. Fortunately, Larry Swedroe writes, more people are taking greater notice of the evidence. It’s truly an amazing paradox. According to the Thomson Reuters Lipper second-quarter 2018 snapshot of U.S. mutual funds and exchange-traded …Read More.
In an open letter to his children, Wealth Advisor Tad Gray shares some important financial lessons for young professionals just starting their careers. In particular, he writes, the right mindset is a crucial tool for developing good money habits. Wealth Advisor Tad Gray, CFP®, penned the following article, an open letter to his children, for …Read More.
The low-beta anomaly may be persistent and pervasive across the globe, but, research shows its returns are explained well by other now-common factors and its premium is dependent on certain circumstances. As director of research for Buckingham Strategic Wealth and The BAM Alliance, I’ve been getting lots of questions lately regarding the advisability of investing …Read More.
In a follow-up to his overview of the asset location decision, Kevin Grogan takes a more comprehensive look at how a security’s expected return and risk characteristics can change based on the tax treatment of the savings vehicle in which it’s held. Our recommendation on asset location is to prefer holding tax-inefficient assets in tax-advantaged …Read More.
Once you’ve chosen the mix of assets appropriate for you, the next step involves determining which type of investment account will hold them. Kevin Grogan breaks down the asset location decision and how it can help maximize after-tax returns. The first decision you make with respect to your portfolio is its asset allocation, or the …Read More.
Pension plan sponsors engage investment consultants even though the evidence clearly shows their recommendations fail to add value. Why? Larry Swedroe examines research that concludes there’s an agency problem (that is, a conflict of interest) at work. It seems logical to believe that if anyone could beat the market, it would be the pension plans …Read More.
Given the many competing demands on your finite income, identifying true financial priorities can be challenging. To help, Tim Maurer revisits his list of places where (and in what order) you should spend (or save) your next available dollar. There is no shortage of receptacles clamoring for your money each day. No matter how much …Read More.
Given what’s at stake and the complexities in play, more fully engaging with your finances can seem like a daunting task. To help, Wealth Advisor Katie Keary looks at five ways to develop the tools you need to become more confident with your money. Becoming more engaged with your finances can be a daunting task …Read More.
What are the relative merits of owning Treasury Inflation-Protected Securities (TIPS) vs. nominal bonds? Larry Swedroe breaks down the process, and the math, for determining which route is the more appropriate strategy. I’ve been getting lots of questions lately about the merits of owning Treasury Inflation-Protected Securities (TIPS) versus nominal bonds. With that in mind, …Read More.
Emotions shouldn’t be ignored and suppressed, but rather acknowledged and accounted for in building a financial plan. Tim Maurer explores ways we can train our emotional and rational selves to work together when making decisions about money. The most compelling findings regarding financial decision-making are found not in spreadsheets, but in science. A blend of …Read More.