Investing

Stock Picking

We’ve discussed active versus passive investing at length in this blog. For those that might not be familiar with the difference, active investing is where a manager or investor attempts to pick investments that will beat a benchmark or relevant index while passive investing is where a manager or investor attempts to match benchmark or …

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Investing

International Diversification

Sometimes you have to see, read and/or hear something multiple times before it actually sinks in. This is one of those cases for me. I’ve written extensively about the benefits of diversification in this blog and have been a huge advocate of international diversification for myself and for my clients. I read this piece yesterday and I …

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Investing

Active versus Passive

We’ve talked a lot about active versus passive management in this blog. While passive has been winning the fund flow battle, there are still a lot of people that believe active funds are better because there’s an investment professional running them and making “professional” decisions. Here’s a link to a post by Larry Swedroe on Evidence Based …

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Investing

What’s Your Philosophy?

Having an investment philosophy isn’t something that individual investors think about much, or at least they don’t realize they think about much. An investment philosophy consists of the core principles that should govern an individual’s or organization’s investment activities. Without these principles, a strategy or portfolio will likely lack the necessary sustainability and organization to …

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Investing

Investing Close to Home is Overrated

We’ve written a lot about geographic diversification. With the U.S. having performed so well over the past decade and international markets lagging by quite a bit, many investors are currently heavily concentrated in the U.S. stock market. Here’s a nice write-up from Morningstar debunking some of the more popular misconceptions about investing abroad and re-enforcing …

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Investing

Keeping It Simple

We live in a world of complexity. Whether it be applying the U.S. tax code or understanding health insurance options or applying for college or developing an appropriate social security draw strategy or developing a credible financial plan or any number of other situations, we’re often required to make decisions on our own without complete …

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Investing

Sequence of Returns

The Risk When nearing retirement and contemplating withdrawal strategies, there are various factors to consider such as timing, amounts and tax implications. While I’m not going to address these particular factors today, I am going to discuss one of the critical risks that all retirees who are dependent upon their retirement accounts to fund their …

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Economics Investing

The “R” Word

Economists have predicted nine of the past five recessions. If that statement doesn’t make sense to you or appears to be wrong, it’s meant to. The quote is attributed to Paul Samuelson, the first American to win the Nobel Prize in economics. The quip was meant to imply that economists aren’t very good at predicting …

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