Speaking the Language of Risk
When I say “risk” and you say “risk,” chances are high we don’t mean the same thing. The finance industry defines risk as something measurable. It is variability within a set of known limits. You may have heard it referred...
An Investment Lifeboat Drill Now Can Help Weather Future Disaster
Calm water makes a lifeboat drill much easier. We aren’t fighting the waves or the fear we feel during an emergency. Still, if the worst happens, and the drill becomes reality, at least we’ve rehearsed. We’ll know exactly what we...
At an Impasse but Finding a New Path
“I can’t believe you see it that way!” Just last week, I said this to my wife in the middle of a discussion (O.K., a fight) about money. We were experiencing something many of you have probably also faced. We...
Simple Financial Solutions Often Beat the Complex Ones
“Can it really be that simple?” Over my career, I’ve heard these words from so many people. Clients, friends and family all just assumed that the process of financial planning needed to be complex. This assumption doesn’t surprise me. The...
Finding Surer Footing
We left the trail head at 1 a.m. and headed for the summit of the Grand Teton. I had made this climb several times, but my friend was still new to mountaineering. This trip was his first attempt at the...
Add Uncertainty to Your Financial Plans
Human beings don’t like uncertainty, especially when we’re contemplating our financial futures. It’s not enough for us to think that we’ll have enough money to send our kids to college, or to retire. We want to know exactly how much...
A Mystery in Hedge Fund Investing
When I look at hedge funds, there are three data points that keep bothering me. They create a pattern that doesn’t make a lot of sense. I hope you can help me understand what I’m missing. 1. Hedge fund performance...
Rethinking Money, Not as Good or Bad but as a Tool
Almost everything we’re taught about money is focused on spending it and saving it. Parents, teachers and even personal finance books discuss saving money as keeping it, increasing it and controlling it. Saving money involves figuring out ways to get...
Don’t Be Afraid to Stand Apart From the Herd
What feels safe is often risky, and what feels risky is often safe. This statement contradicts just about every evolutionary instinct we possess. We tend to seek out safety and avoid risk whenever possible. A classic example has to be...
Comparisons With Others Can Obscure Our Own Goals
On and off over the years, I have used a training app called Strava. It allows you to keep track of your performance on different biking, running and skiing trails. You can even break down overall times into sections or...
