Learning Center

Avoid ‘Bad & Ugly’ Strategies

Date28 Dec 2015

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Over the past week, we’ve taken an in-depth look at why today’s investors are facing a “perfect storm” of factors that, when combined, can significantly hinder the pursuit of higher expected returns. In taking on this problem, we have so far discussed the elements working against investors, as well as some steps to help combat...

When an Expense Becomes a Wise Investment Choice

Date28 Dec 2015

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Ask someone how they invest, and you’ll probably get a pretty standard answer involving stocks, bonds and maybe some real estate or cash. But rarely will people mention something that is even more important: their investments in human capital. They don’t talk about it because human capital investments can look a lot like any other...

Rising Rates Don’t Doom REITs

Date28 Dec 2015

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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 become 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 Agony and the Ecstasy: Risks and Rewards of a Concentrated Stock Position

Date21 Dec 2015

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It’s been said that diversification is the only free lunch in investing because, done properly, an investor can reduce risk without reducing their expected return. Yet despite this wisdom, many individuals hold concentrated positions in a single stock when they could easily diversify away that idiosyncratic, single-company risk. Which, then, begs a critical question: given...

The Market Humbles Junk Bond Fund Managers

Date21 Dec 2015

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Do you remember the scene from It’s A Wonderful Life—only the best holiday movie ever—when George and Mary Bailey are cruising out of Bedford Falls on their well-earned honeymoon, only to notice a literal run on the banks (including the Bailey Savings and Loan, which George reluctantly operates)? Well, as Mark Twain is attributed as...

Avoiding Caregiver Burnout During the Holidays

Date21 Dec 2015

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By Sylvia Nissenboim Both caregiving for an elderly loved one and preparing for the holidays can come with a lot of joy, but also some unintended stress. As such, it’s vital that caregivers don’t overload themselves as they balance the day-to-day demands of caring for an older family member with the additional commitments that pop...

Longer Lives Lower Interest Rates

Date14 Dec 2015

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Ever since the global financial crisis, the real interest rates of developed economies have remained in negative territory. Nominal interest rates hover near zero, and inflation rates, although quite low for historical standards, have remained positive (in most countries, at least on average). What’s more, negative nominal interest rates have even been observed in some...

Compelling Employees to Make Bad Choices

Date14 Dec 2015

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I don’t want to rehash all the reasons for my view that investors should avoid actively managed funds, expensive, complex investment products and “alternative investments” like hedge funds and private equity. If you find these investments suitable, you have every right to buy them. Special issues with 401(k) plan participants Employees with 401(k) plans, however,...

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