A Free Lunch for Investors
Nobel laureate Milton Friedman is generally credited with stating, “There’s no such thing as a free lunch.” Actually, if you know what you are doing, you can get a free lunch in investing. Unfortunately, most investors get stuck with very expensive meals....
New Rule: All Purchases Subject to a 7-Day Mental Quarantine
My wife and I are setting up a customs screening station in our driveway. No, we’re not starting an international airport. And it’s not for solicitors, strangers or gift-bearing guests. It’s for us and our stuff. From now on, before...
2016’s ‘Best City In The World’ Goes To…
Charleston, South Carolina. According to Travel + Leisure magazine, “Charleston is a remarkably dynamic place, so it’s no surprise that it has achieved its highest ranking ever in our survey as the year’s best city in the world.” It’s the first time a...
Virtues of Do It Yourself Bond Laddering
Bond ladders are frequently criticized in the financial media and even among some professional advisors (who, I would point out, are often able to use only bond mutual funds or ETFs). Earlier this week, we corrected some common misperceptions regarding individually...
The Top 10 Myths About 401(k) Plans
Regular pre-tax deductions toward a retirement plan balance figure into a lot of employees’ paychecks, but many people don’t fully understand how the fund they’re contributing to works. Tim Maurer debunks ten common myths about 401(k) plans. Find it on...
No Really: Just Ignore Day-To-Day Stock Market Fluctuations
Early Friday morning, a friend texted me. Here’s what he said: “Will you come talk to my co-workers?! They are talking about stopping their 401(k) contributions because of what’s going on! Driving me nuts!” Still not quite awake, I replied,...
Consider Factors in Fixed Income
It’s been well-documented that, in equity investing, assets have earned premiums because they are exposed to the risks of a certain factor. Given that the literature provides us with a veritable factor “zoo” (there are more than 300), for investors...
When False Factors Are Exposed
The world of finance and asset pricing used to be fairly simple. At first, there was just the single-factor capital asset pricing model, with market risk (beta) as the sole factor to explain the differences in returns of diversified portfolios....
Hope Deferred Makes the Heart Sick
“Hope deferred makes the heart sick, but a longing fulfilled is a tree of life.” So reads a Solomonic proverb penned in the 10th century B.C. Consider with me, however, a contemporary application of this ancient wisdom, especially in the realm...
How to Avoid Letting Money Destroy Your Relationships
Money destroys relationships because people can’t compete with money. Money, after all, doesn’t disappoint you, or express disappointment with you. It’s not that money is inherently bad or evil, but it’s not inherently good or righteous either. Money is simply a...
