Equity Indexed Annuities – Simple Right?
Equity-indexed Annuities (EIA's) are complex investments sold by insurance companies that pay investors part of the capital appreciation in a stock index and guarantee a minimum return if the contract…
Warren Buffet Proves Markets are Inefficient – Right?
Any time I suggest to a potential investor that mutual funds are not likely to be their best approach to obtaining wealth because a stock picker is not likely to…
The Case Against Mutual Funds
One of the first heuristics taught in any course on personal finance is the Rule of 72. This is the observation that if we want to figure out how many…
The Origin of Risk Aversion
Risk Aversion (as opposed to Loss Aversion) is the extent of the preference for certainty in quantifiable, positive outcomes. When presented with a choice between guaranteed and variable outcomes. It…
Move to Bonds with Age – Maybe Not!
The almost universal position among financial planners, and those in the financial media is that investors with an eye on retirement should reduce the “risk” of their portfolio with age.…