White Paint, Warren Buffett and the Nevada Pension Fund
“It’s white paint, but it works.” This is often what I say to my clients when I tell them they should simply invest in a target date retirement fund in their 401K or that the portfolio I am advising they invest […]
Read MoreYour Portfolio Should Already Be Structured For The Election
There is a lot of talk about whether investors should sell their investments because of the coming election. For most people the answer is no! A persons investment portfolio should already be designed to withstand a potential market drop due […]
Read MoreA Modest Proposal – Employers, NOT Employees, Pay 401K Plan Fees
Recently, there has been much in the news about employees suing their employer over the high cost of fees in their 401K plans. This liability exposure is due to an employers obligations under the Employee Retirement Income Security Act of […]
Read MoreIntro to Behavioral Finance: a Blog, a Podcast and 3 Books
Recently, I read a post on mental modeling in the blog Farnham Street, written by a Shane Parrish. I really loved this post. It gets to the heart of bad decision making. Just as we are often physically lazy, we are […]
Read More60 Second Blog: The Power of Compound Interest
Einstein famously said “Compound Interest is the eighth wonder of the world. He who understands it earns it, he who doesn’t pays it” Use this great calculator to show how money can grow over time: http://www.econedlink.org/interactives/tools/eel-compound-interest-calculator/EconEdLink-2-Compound-Interest-Calculator.swf I ran 2 scenarios: The […]
Read More16 Pages All Millennials Should Read
I need to share a short book with you. The 16 page book is called “If You Can: How Millennials Can Get Rich Slowly” I was buying the book as part of a college graduation gift and found that it […]
Read More60 Second Blog: The Benefit of Delaying Social Security Can Be Huge
This chart produced with SSAnalyzer software compares 2 social security claiming strategies for a married couple ages 62 and 63, who have decided to retire and who have $1,000,000 saved and who need $65,000/year, before taxes, for their retirement living […]
Read More60 Second Lesson: Commit This One Sentence To Memory!
This picture is from page 86 of Peter L. Bernstein’s wonderful “Capital Ideas: The Improbable Origins of Modern Wall Street. The next sentence on page 87 reads: “If the market itself is the super-efficient portfolio, no one can beat it without […]
Read More60 Second Lesson: The Power of Compounding
This blog is courtesy of the WSJ and Matthew Papazian, founding partner of Cardan Capital Partners LLC in Denver. “The bars in the chart show the amount of money someone who starts saving at various ages would have to set […]
Read More60 Second Lesson: Too Many Investors Sell Low & Buy High.
I have kept this graphic around for years. It is a great example of poor investor behavior. It shows 3 things: The first thing is returns of the US stock market (represented by the S&P 500). The US market is […]
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