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Understanding Different Types of Risks

Larry Swedroe on the importance of integrating all risks (not only the investment kind) into an overall financial plan. Larry Swedroe, Director of Research, The BAM ALLIANCE Harry Markowitz received the Nobel Prize in Economic Sciences in 1990 for his contributions to the body of work known as “modern portfolio theory.” Probably his greatest contribution…

Understanding Different Types of Risks

Larry Swedroe on the importance of integrating all risks (not only the investment kind) into an overall financial plan. Larry Swedroe, Director of Research, The BAM ALLIANCE Harry Markowitz received the Nobel Prize in Economic Sciences in 1990 for his contributions to the body of work known as “modern portfolio theory.” Probably his greatest contribution…

An Integrated Investment Plan Is Key

A sound investment plan isn’t the only way to find financial security. Earlier this week, we looked at the importance of incorporating different types of risk—specifically, human capital risk—into an overall financial plan. Today I will focus on mortality and longevity risk, and using “tax alpha” strategies to improve the odds of achieving your financial goals….

A More Complex View On Value

Larry Swedroe shows that book-to-market isn’t the only criteria for defining the value factor. Eugene Fama and Kenneth French’s 1992 paper, “The Cross-Section of Expected Stock Returns,” resulted in the development of the Fama–French three-factor model. This model added the size and value factors to the market beta factor. As my co-author, Andrew Berkin, and…

How to Help Aging Parents With Their Finances

Helping aging parents with their finances. Role reversal: If you have aging parents, they may need help sorting out their finances. Stuart Vick Smith lays out some steps you can take to help them feel in control of their financial life. Find it on KVUE.com By clicking on any of the links above, you acknowledge…

Private Equity Adds Risk, Little Return

Larry Swedroe on how the risk of private equity doesn’t always equal higher returns. The term “private equity” is used to describe various types (e.g., buyout funds and venture capital funds) of privately placed (nonpublicly traded) investments. Even though buyout (BO) funds and venture capital (VC) funds have similar organizational and compensation structures, they are…

Factor Human Capital Into Your Financial Plans

The value of your labor should be considered when making investments. When designing an investment plan and deciding on the appropriate asset allocation, you should make sure to consider your unique ability, willingness and need to take risk. The latter two considerations are fairly straightforward. The more “stomach acid” you can absorb during bear markets…

What Is Enough? – with Dr. Kate Levinson

Answering the age-old question of “What is enough?” with Manisha Thakor and Kate Levinson in MoneyZen podcast. How do you answer that age-old question: What is enough? Manisha Thakor poses the question to Dr. Kate Levinson, a licensed therapist who has spent more than 20 years studying the interface of money and psychology. By clicking…

Political Biases Can Impact Your Investing

Larry Swedroe reviews the evidence on how political biases can affect your investing. “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light,…

Moral Hazard In Hedge Fund Fees

Larry Swedroe on how a systematic approach can help mitigate the problem. The typical hedge fund fee structure includes a management fee, calculated as a fixed percentage of a fund’s net asset value, plus an incentive fee, calculated as a percentage of its trading profits. Some hedge funds use both hurdle rates and a high-water-mark…

Financial Calm and Confidence

Manisha Thakor on the importance of building relationships in financial planning. The best financial relationships occur when your wealth advisor is interested not just in investing your money, but in investing in your life. Manisha Thakor on helping clients achieve financial clarity, calm and confidence through the process of true wealth management. By clicking on…

Why Busyness Isn’t Good Business

Tim Maurer asks 12 thought leaders for techniques to stop the cycle of “busyness.” It’s old news that we’re busy and that we wear our busyness as a badge of honor. But a new study found that Americans, in particular, are actually buying it. Specifically, the study concluded that Americans who always say they’re “busy” are actually seen…

When Vice Outperforms Virtue

Larry Swedroe checks the research on socially responsible vs. “vice” investing. Socially responsible investing (SRI) has been referred to as “double-bottom-line” investing. The implication is that investors are seeking not only profitable investments, but investments that meet their personal standards. For instance, some investors don’t want their money to support companies that sell tobacco products,…

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