Shoring up our financial defenses before we can’t remember where we put da fences I am a pretty laid-back person, but one thing that makes me go from zero to ‘losing it’ in short order is when somebody attacks Grandma (or Grandpa.) Not just my grandma, but any grandma. In this case, I’m not speaking […]
Let the Dogs Bark
The term “expected return” is in wide use among financial planners. To the layman it carries misleading connotations: most assume that it carries with it a high degree of confidence. After all, we are “expecting” a certain rate of return, aren’t we? Actually…no. Let’s explain: The expected return is a measure of the center of […]
How Long-Term Investment Strategies can Mitigate your Ticker Risk
What is ticker risk? Don’t bother searching the internet as this is simply a term we occasionally use to describe the inherent risks that come with giving too much credence to the current price and daily changes of the S&P 500, Dow 30, and Nasdaq Composite Index. These three, main “tickers” represent the vast majority […]
Why a second home merits a second thought
Picture this: you take a trip somewhere great and have an absolutely wonderful experience. You love everything about this place: the area, the climate, the people and just the overall ‘feel’ of being there. Then the inevitable question presents itself- wouldn’t it be great to have a little place here that we could retreat to […]
Irrational Expectations (and 3 things you can do to guard against them)
Expectations are powerful things. They involuntarily override our logic and amplify our emotional response to events based on how those events measure up to our expectations. When it comes to making decisions about our finances, emotions make poor bedfellows. In the stock market, expectations are everything. A company can have a great earnings report, but […]
The Risk Illusion
As emotional beings, we are susceptible to illusions and phobias. Never mind that the snake under the bed turned out to be a sock, or that the monster in the closet was a hat and overcoat. At times our irrational fears seem so real that no amount of reason can calm us. At the same […]
Socially Responsible Investments: The Good, The Bad, and The Green
These days, socially responsible investing, or SRI for short, is a popular practice among investors who consider themselves socially conscious, and who want to believe their money can do more than just increase the value of their own portfolio. And in theory, this seems like quite the win-win: after all, who wouldn’t want to see […]
The Crucial Difference Between Investment Brokers And Fee-Only Advisors
The common perception among the investing public is that all of the professionals who help clients manage their money are “financial advisors,” and all belong to one profession. This (mis)conception is dangerous and needs to change. In reality, there are two distinct businesses: investment sales and financial advice. Knowing the difference can be crucial to […]
3 Simple Investment Principles To Keep You Out Of Wonderland
As a newcomer to financial planning, entering the world of investing without some basic principles to follow can feel a lot like Alice tumbling down the rabbit hole. All of a sudden, you find yourself in a bizarre alternate reality where normal, everyday language is replaced with “securities,” “beta,” “alpha,” “tranches,” “futures,” and “REITS.” You […]
Tax Planning 101: How To Make The Most Of Your Tax Bracket
(Note: all screenshots in this post are from our 2015 Numbers Unlimited financial planning worksheet, which you can access here.) With April 15 nearly upon us, you’ve submitted your tax returns by now, and the chances are good you’re breathing easy knowing the next tax season is nearly a year away. But before you get […]