Blog
Every Financial Crisis Is Different
Looking Back Stock-market declines are always obvious in hindsight. When technology stocks reversed course in spring 2000, after years of gains, the New Era was over. Prudent investors exited. Several years later, The Big Short informs us, the smart money understood...
How to Raise the Retirement Age For People Who Want to Work
Work can be tiring, all right. But how is it that people considered too old to sit at a desk are young enough to play 18 holes of golf? These days, a lot of Americans are retiring while they still have years of good health in front of them. Given the increasing...
How To Stack The Odds In Your Favor
The best investment advice- boring as it may be- is to save more money. Delaying current consumption to benefit your future self is one of the simplest ways an investor can stack the odds in their favor. Legendary investor Stanley Druckenmiller’s is one of the more...
Swedroe: Overconfident Enemy In Mirror
One of the questions I’m most often asked by reporters covering finance is: “What are the biggest risks facing investors?” My usual response is that the biggest risk confronting most investors is staring right back at them when they look in the mirror. And there’s...
Deconstructing 30 Year Stock Market Returns
The worst 30 year return — using rolling monthly performance — occurred at the height of the market just before the Great Depression and stocks still returned almost 8% per year over the ensuing three decades. You can see that there is some variation in these returns...
The first five years can trip up your retirement finances permanently
If a retiree can generate enough guaranteed income to cover basic expenses using Social Security, any pension income and annuities, then he or she can invest other savings in stocks, said Steve Vernon, a research scholar at the Stanford Center on Longevity. Having...
When Not Paying Attention Pays Off
Pay attention to your teacher. Pay attention to detail. Pay attention, pay attention, pay attention! Our entire lives we’re warned: Pay attention, or.… Well, you know. The worst will happen. But when it comes to your investment portfolio, please do not pay too much...
Morningstar: The more you pay, the less you get from funds
Investing in an actively managed fund with high fees is like betting on a smoker to win a marathon, according to a new study released by Morningstar. Morningstar's active/passive barometer measures actively managed funds against a composite of relevant passive index...