In previous blog posts, I’ve discussed the dismal performance of actively managed mutual funds. I also noted this underperformance has not gone unnoticed by investors. Actively managed funds have experienced massive outflows through September, while index funds have seen net inflows for the past eight months. The slim chance of “winning.” But this isn’t the…
Since the 1992 publication of “The Cross-Section of Expected Stock Returns” by Eugene Fama and Ken French, the size factor has been among those used in asset pricing models that attempt to explain the differences in returns of diversified portfolios. While Fama and French limited their model to three factors (beta, size and value), asset…
In the Mormon Church, the first Sunday of each month is called Fast Sunday. As my kids have pointed out, however, it’s not because it goes by faster than any other Sunday. Quite the opposite, in fact. It’s called Fast Sunday because members of the Church of Jesus Christ of Latter-day Saints, or Mormons, use…
Financial planning guru George Kinder has a powerful tool for helping people set priorities for their money…and their lives. Here it is. Few things seem more diametrically opposed than managing money and spiritual enlightenment. But not everyone sees it that way. Some very influential people in the financial advisory community have dedicated their lives to…
America has discovered a new financial guru. Tony Robbins’ new book on investing, MONEY Master the Game: 7 Simple Steps to Financial Freedom, has shot to the top of Amazon’s bestseller list. Mr. Robbins, who has been nicknamed the “mahatma of motivation,” excels at self-promotion. The publication of his book has generated immense publicity, including…
In my 20 years’ experience as a financial advisor, I’ve learned that even if there were such a thing as the “perfect portfolio,” choosing the asset allocation that’s most likely to allow you to adhere to your financial plan is even more important than the allocation itself. Because adhering to your plan should give you…
I travel a decent amount. I don’t mind flying, but I’ve always struggled with the loss of productivity. Hours waiting at the airport. Even more hours in flight. But with the advent of in-flight Wi-Fi, I thought my productivity problems were solved. I was wrong. I’ve instead concluded that by nixing slow and unpredictable in-flight…
This video features Larry Swedroe, director of research for the BAM ALLIANCE.
This video features Carl Richards, director of investor education for the BAM ALLIANCE.
Giving Tuesday might officially be behind us, but let’s face it—we’re just getting started. The giving season is underway, with the holidays and year-end bearing down on us. So how can we transform one of the more stressful, and sometimes guilt-ridden, elements of the season into something more life-giving? Whether you’re giving to a family member,…
This video features Jim Whiddon, director of investment enrichment for the BAM ALLIANCE.
This video features Tim Maurer, director of personal finance for the BAM ALLIANCE.
Many investors are glued the financial news, tracking the latest reports about interest rates, earnings reports and stock movements. They believe this kind of intense focus will help them maximize returns. They couldn’t be more wrong. Instead of spending time looking up a stock symbol to find out its latest price, investors would be better…
“What fuels widespread fears at this moment isn’t aging. It’s retirement….Never before have so many people had so much experience and the time and the capacity to do something significant with it.” So states Chris Farrell in his thought-provoking new book, Unretirement. He goes on, writing that “the last third of life is being both…
In most areas of human endeavor, we use the term “professional” to refer to someone whose educational background and skill level give him or her a level of expertise worthy of admiration or deference. It doesn’t work that way with investing. The term “investment pro” is tossed around with abandon. It refers to anyone who…