Larry Swedroe on how a systematic approach can help mitigate the problem. The typical hedge fund fee structure includes a management fee, calculated as a fixed percentage of a fund’s net asset value, plus an incentive fee, calculated as a percentage of its trading profits. Some hedge funds use both hurdle rates and a high-water-mark…
Manisha Thakor on the importance of building relationships in financial planning. The best financial relationships occur when your wealth advisor is interested not just in investing your money, but in investing in your life. Manisha Thakor on helping clients achieve financial clarity, calm and confidence through the process of true wealth management. By clicking on…
Tim Maurer asks 12 thought leaders for techniques to stop the cycle of “busyness.” It’s old news that we’re busy and that we wear our busyness as a badge of honor. But a new study found that Americans, in particular, are actually buying it. Specifically, the study concluded that Americans who always say they’re “busy” are actually seen…
Tim Maurer on the irony (or not) of fiduciaries supporting a fiduciary rule. The Trump administration’s move to delay implementation of the Department of Labor’s fiduciary rule has inspired me to delay implementation of my commitment to remain silent on matters of public policy and politics. It’s that important. It seems pretty obvious that those…
Larry Swedroe checks the research on socially responsible vs. “vice” investing. Socially responsible investing (SRI) has been referred to as “double-bottom-line” investing. The implication is that investors are seeking not only profitable investments, but investments that meet their personal standards. For instance, some investors don’t want their money to support companies that sell tobacco products,…
Feedback on investment decisions helps improve investor performance: Larry Swedroe unpacks the research. It’s been well documented that, on average, retail investors are “dumb” money. For example, on average, the stocks they buy go on to underperform, and the stocks they sell go on to outperform. Sadly, investors even manage to underperform the very mutual…
Manisha Thakor brings Buckingham’s Steve Weiss on the MoneyZen Podcast to discuss some of the ins and outs of Social Security. Manisha Thakor brings Buckingham’s Steve Weiss on the MoneyZen Podcast to discuss some of the ins and outs of Social Security, including strategies for claiming benefits and optimizing them to fit your life and financial…
Turns out the “smart money” often isn’t. Larry Swedroe on who, exactly, exploits market anomalies. Institutional investors are generally considered “smart money” that exploits the behavioral biases of “dumb” retail money. However, there have been some holes poked in that idea recently. For instance, Roger Edelen, Ozgur Ince and Gregory Kadlec, authors of the study…
Larry Swedroe compiles his list of financial predictions to watch for the year. Every year, I like to keep track of the predictions “gurus” and other market observers make for the upcoming year, specifically the ones they say are “sure things.” It seems like no one in the financial media holds them accountable (which is…
For some, fiduciary is just a headline. For us, “It’s who we are.” The word fiduciary has been in the news a lot of late, from Wall Street to Washington, but it’s a word that has always been part of our daily dialogue. Advisors who act as fiduciaries, as we do, are legally required to put the…
Diseconomies of scale and their impact on active manager performance. There is a large body of overwhelming evidence that past performance is at best a poor predictor of active managers’ future performance. That is why the SEC requires that common and familiar disclaimer. There are many explanations for the difficulty that active managers face in…
Larry Swedroe unpacks research on the impact that short-selling a firm’s stock can have on that company’s bond returns.
STL Today columnist Jim Gallagher enlists Larry Swedroe to discuss some reasons why investors shouldn’t trust market forecasts.
Manisha Thakor talks about joyful work and finances with Gur Tsabar.
Larry Swedroe surveys the benefits and drawbacks of the rise of ETFs.