Investments, Retirement Planning, Wealth Management
Whenever we find ourselves forced to make decisions with limited information, we are most likely to use a decision rule or heuristic based on prior experience. This approach is easy…
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…
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…
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…
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…
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.…
I ran across an interesting question recently. If GDP growth has averaged roughly 3% per year for the past 50 years, and inflation also averaged around 3% per year over…
I had a classmate in my MBA program who left his job as an equity analyst to come back to college to get an MBA. The longer-term goal was to…
In the context of investing we all would like to “buy low and sell high.” A profit is made when you sell something for more than you paid for it.…
When I type the phrase “social security crisis” into a Google search bar I get 654,000,000 results in 0.5 seconds. It seems safe to say that the impending shortfall (if…