Tilting to small-cap and value stocks is all the rage these days in the portfolio management world. There’s even a company pretty much devoted to it, Dimensional Fund Advisors (referred to as DFA in finance-nerd sectors), whose funds have rapidly gained notoriety over the past few years. There are plenty of prominent advisors who advocate some sort of tilting
For all the great strides Wall Street has made in making investing easy and affordable for the average person over the past few decades, investing still costs money. Most mutual funds have minimums in the thousands of dollars (not hundreds), and brokerage commissions make buying individual stocks prohibitively expensive if you only have a little to invest.
For decades, the name Vanguard has been synonymous with “index funds.” Ever since the establishment of the first index fund open to individual investors, the venerable Vanguard 500 (VFINX), Vanguard index funds have stood out as the low-cost gold standard of the mutual fund industry and have attracted a fiercely-loyal following of passive investors. The
Wouldn’t it be incredible if there was something akin to a magic bullet when it comes to investing? Something you could do, almost mechanically, that would dramatically boost your eventual income in retirement? Well, there is! I know it sounds too good to be true, but it isn’t. Let me explain… The One Magic Bullet
In days of yore, “I have CD’s at 3 different banks” was quite the cocktail party boast. I remember thinking my grandmother must hold accounts at every bank in the state when I was a kid. This was a big deal for two reasons. It meant you probably had enough money to need to spread
I’ve never exactly blogged anonymously, so it’s only natural people in real life have become aware of my online properties over the years. I suppose it’s also only natural that since I run a personal finance blog, they occasionally ask me for financial advice. I hate it when this happens and I usually try to
Try Googling “how much to invest in bonds?“. Go on, I’ll wait. By my count, there are something like 200 million results! That’s far too many for so simple an issue. Let me break it down for you. Don’t Optimize, Satisfice Photo Credit: Elliott Brown Many of us, especially the left-brained among us, like to think
Those of you who follow my other personal finance and investing blog, amateurassetalloactor.com, know I have always advocated setting a reasonable asset allocation and staying the course through good times and bad. Most importantly, I have come out against market timing again and again and again. I believe nobody can reliably time the market, myself