Learning Center

Beware Hot High-Dividend ETFs

Date22 Jul 2014

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The low-interest-rate environment we’ve been experiencing for six years now has led to the increased popularity of high-dividend investment strategies. But the popularity of a strategy, however, can sow the seeds of poor future returns. This occurs because cash flows impact valuations, and valuations are the best predictor of future returns. Given the growing popularity...

Do Rising Rates Spell Doom For REITs?

Date22 Jul 2014

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As we have discussed many times, much of the conventional wisdom on investing is simply wrong. For our purposes, we can define conventional wisdom as those ideas that are so commonly accepted that they go unquestioned. Today, we’ll look at the idea that rising interest rates would doom returns to real estate investments, specifically the...

The Long And Short Of The Low-Volatility Anomaly

Date22 Jul 2014

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As far back as the early 1970s, research has shown that the lowest volatility stocks have provided better returns than the highest volatility stocks. These findings run counter to economic theory, resulting in the low-volatility anomaly. The academic research, combined with the 2008 bear market, has led to low-volatility strategies becoming a darling of investors....

Who’s in the Driver’s Seat? Having Real Conversations With Older Relatives About Diminishing Driving Ability

Date22 Jul 2014

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By Sylvia Nissenboim Recently, a friend and I spent a week at the Grand Canyon. Upon our return, a family member picked us up at the airport. Our stories of the challenging excursion ended abruptly as we swerved onto the highway. Instead of blending into merging traffic, my relative slowed down to let...

10 “sure things” for 2014: Not so much

Date22 Jul 2014

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At the beginning of each year, I compile a list of predictions that financial gurus and industry experts tell us are a “sure thing.” And each year, I track how many of these predictions actually come true. So, it’s now time for our second quarterly review of 10 financial predictions that pundits forecast as certain...

Counting the Ways That Budgeting Has Added Up in My Marriage

Date22 Jul 2014

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Several years ago, my wife and I sat across from an experienced married couple squirming in their seats as though they feared we were about to deliver some terrible news. But the source of their discomfort was what they were about to drop on us. You see, we were not yet married, but engaged, and...

The Great American Pension Rip-Off

Date14 Jul 2014

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Unless you work for a city or state government, you probably don’t have a traditional pension — also known as a “defined benefit plan.” The number of employers offering these plans has decreased sharply, and now, by some estimates, only 29 percent of workers in the United States have access to them. In contrast, 83 percent...

Your 401(k) Plan May Provide a False Sense of Security

Date14 Jul 2014

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The 401(k) landscape is definitely improving. But with this improvement comes a new danger: Your plan may be giving giving you a false sense of security. According to a report on 2013 defined contribution plan data, “How America Saves 2014,” recently published by Vanguard, more than 88 million Americans participate in defined contribution plans. The...

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