Is the conventional wisdom that equates turnover and shorting with tax inefficiency actually right? Larry Swedroe unpacks research showing that relaxing quantitative tax-aware strategies’ long-only constraint can drastically increase tax benefits. “Conventional wisdom” can be defined as ideas that are so accepted they go unquestioned. Unfortunately, conventional wisdom is often wrong. Two good examples are …Read More.
Many 40-somethings are seeing their income begin to peak, but expenses are often on the rise as well. Tim Maurer goes on CNBC’s “Power Lunch” to talk about what financial steps investors in their 40s should take first. In your 40s, plan for the present through cash flow management and prepare for the future by …Read More.
In a look at the historical data on stock returns following periods of negative performance, Jared Kizer explores why revisiting the market’s longer-term properties can help put last quarter’s volatility into broader context. From March 2009 through September 2018 — a period encompassing almost 10 years and the aftermath of the Great Financial Crisis — …Read More.
Looking for something new to read? Made a New Year’s resolution to spend more time with the written word in 2019? If so, Tim Maurer’s list of his 10 favorite personal finance books could be a great place to start. A friend recently asked me to offer a list of my five favorite personal finance …Read More.
When faced with stock market volatility, it’s critical to take the long view. Larry Swedroe helps keep things in perspective with a look at why disciplined investors have been rewarded for their patience. The holiday season is supposed to be about good cheer. Given the economic news, you might think investors would have plenty to …Read More.
In a new look at why global diversification remains the prudent strategy, Larry Swedroe writes that equity valuations today suggest investors are likely to be disadvantaged if they underallocate to emerging market stocks. You have a choice to invest in asset class A, which has a one-year forward-looking price-to-earnings (P/E) ratio of 10.6; or asset …Read More.
There’s always something to worry about when it comes to the stock market, but panic selling all-too-often ends in disaster. That, Larry Swedroe writes, is why it’s so crucial for investors to have a prudent, well-thought-out financial plan in place. As the director of research for Buckingham Strategic Wealth and The BAM Alliance, whenever markets …Read More.
After a look at the historical evidence, Larry Swedroe makes the case that investors haven’t been adequately compensated for taking on the various risks, implementation issues and other planning requirements associated with corporate bonds. It’s important that investors understand all risky assets can experience long periods of underperformance. My favorite example that makes this point …Read More.
Municipal bond investing, it appears, is growing riskier. Larry Swedroe explores some of the reasons why and argues that, given fixed income’s primary role is one of safety, it’s becoming more important to focus on credit quality. While I could provide an almost endless list of forecasts that went wrong from so-called experts, among the …Read More.
For a more secure retirement, think larger than simply trying to pay the least amount in taxes each year. Wealth Advisor Bill Morgan outlines the process for building an overarching spend-down strategy designed to minimize taxes over a lifetime. Almost every client we talk with emphasizes one primary, overriding goal: having enough money in retirement. …Read More.
The risk of becoming more vulnerable to financial abuse as we get older can pose a significant threat to our retirement security. Larry Swedroe explores research into the scope of the problem, and then offers some steps to help guard against it. The World Health Organization reports that by 2050, 2 billion people (22% of …Read More.
The giving season is now underway, so we’re revisiting some tips from Tim Maurer about how to transform an often stressful (and, at times, guilt-ridden) element of the holidays into something life-giving and fulfilling. The giving season is underway, with the holidays and year-end bearing down on us. So how can we transform one of …Read More.
Wealth Advisor Jada Diedrich unpacks her toolkit for building an efficient charitable giving strategy that’s designed to help maximize the way your contribution dollars benefit not only the causes you hold most dear, but also you and your family. As we enter the holiday season, we often feel compelled to evaluate, and frequently to increase, …Read More.
Larry Swedroe offers his seven keys to remaining a patient and disciplined investor over the long haul. Legendary investor Warren Buffett famously stated: “Success in investing doesn’t correlate with IQ. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people in trouble investing.” The reason temperament …Read More.
Since the global financial crisis, the S&P 500 has posted truly astounding returns. Jared Kizer explores why such performance may not repeat for many decades to come, as well as what investors can expect from U.S. large-cap stocks going forward. I think most investment professionals are generally aware of how well the S&P 500 has …Read More.