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...
Fama and Booth Weigh In On Brexit
When news of the Brexit vote broke, the financial media went into an overdrive of speculation bordering on hysteria. There was much talk about potentially devastating scenarios, including “turmoil“ to global markets. One investment “pro” counseled investors against buying stocks...
A Culture That Encourages Misconduct?
When I started writing books about a decade ago, I took the position that no one should rely on a broker for financial advice. My reasoning was simple. I had never met a broker who recommended a globally diversified portfolio...
An IRA With No Fees and No Risk
According to a recent poll conducted by The Associated Press-NORC Center for Public Affairs Research, two-thirds of Americans earning between $50,000 and $100,000 would find it difficult to come up with $1,000 to cover an emergency. For those earning less...
All Fiduciaries Aren’t Created Equal
Robo-advisors have had a significant — and generally positive — impact on the financial services industry. The term typically refers to services that use models and algorithms to invest client portfolios, often in exchange-traded funds (ETFs). A benefit much touted...
A Stock Tip That Went Horribly Wrong
Of all the misinformation disseminated to investors, the most pernicious supports the belief that some “investment pro” or pundit has the skill to reliably pick outperforming stocks. This myth is perpetuated by endless blogs and television appearances by “gurus” touting...
Complexity Is the Investing Devil
What do the following investments have in common? Options Covered calls Collateralized mortgage obligations Non-traded REITs Master limited partnerships Variable annuities Equity-indexed annuities Hedge funds Principal protected notes Private equity Here’s the answer: They are all complex investments. As a...
The Three Biggest Investing Anomalies
There are many anomalies in investing. It wasn’t easy to isolate the three biggest ones, but here are my choices: 1. You love Warren Buffett, but ignore his advice. Warren Buffett has rightfully been called “the greatest investor of his...
A Simple Strategy Your Broker Hopes You Won’t Learn
The data is irrefutable. There’s a direct correlation between low fees and higher expected returns. Two recent studies from Morningstar bring this point home in a powerful way. The significance of low fees Read the rest of the article at...
Rip-offs on a Massive Scale
Why settle for ruining the retirement dreams of one individual investor at a time when doing so on a massive scale is far more lucrative? That seems to be the strategy of some retirement plan sponsors, consultants, endowments and their...
