Posts relevant to people Age 30 to 50
Reverting to the Mean
You have probably heard the phrase “Reverting to the Mean” before, but what does it really mean in the investment world? According to Investopedia, ‘Mean Reversion’ theory suggests that prices and returns eventually move back towards their mean or average. This mean or average can be the historical average of the price or return or […]
The Low-Risk Anomaly
I ran across an interesting article this week that was published in early 2011 in the Financial Analysts Journal (FAJ). The article is an academic study on the long term returns of investing in high-risk versus low-risk stocks. The study was conducted by three professors of finance/economics who are also asset managers. If you have […]
Recency Bias
Recency bias is not a term you often hear in the investment world, but I have read about it and seen other people experience this thought process when it comes to investing in the markets. I believe recency bias is one of the causes of why so many people sabotage their investments by “buying high […]
A Tool to Help Monitor Your Investments
If you are like me, after years of working and saving money, you have several retirement related accounts spread around different financial institutions. In this post I will introduce you to a free online software tool that can help make monitoring your investments much easier.
My First Real Estate Investment in 13 Years
In a recent post I described in detail a real estate investment of a single family home I have owned for 20 years. In my opinion it has been a pretty good investment for us. In this post I will describe my first real estate purchase in 13 years.
The impact of Stock Dividends on Total Return
In many posts I have stressed the importance of the income an investment provides as much as any capital appreciation you may hope to gain from the investment. In my last post I described a real estate investment I have held for the past 20 years and the income it provides. The importance of income […]
A Real Estate Investment After 20 Years; Was it Worth It?
Next month marks the 20 year anniversary of the purchase of my first long-term real estate investment. In this post I thought it might be instructive to describe the actual transaction I made 20 years ago, the major events during the life of this investment, and the financial benefits my wife and I enjoy today. […]
Is Your Bank and Your Insurance Company Financially Healthy?
If you remember back a few years ago, the three large credit rating agencies, S&P, Moody’s, and Fitch, completely missed the 2008-2009 financial crisis. They each gave several companies investment-grade credit ratings just a few months before they went bankrupt. The most famous “rating miss” was a “AAA rating” that one of the agencies’ still […]
When will the Secular Bear Market End?
The US stock market has been in a secular bear market since 2000. It will be difficult to make any money in stocks until this long term bear market ends. So, the question is when will the secular bear market we are currently experiencing end?
What assets should be placed in which retirement accounts
In my previous post I discussed about how I would prioritize my retirement savings. I suggested it would be prudent to invest in retirement accounts over time, with the goal of creating tax diversity. That is, by having funds in tax deferred, tax free, and taxable accounts. In this post I’ll discuss what type of […]
