For most investors, I recommend a passive investment approach.
Exchange traded (ETFs) and open ended index mutual funds that focus on cost minimization and accurately matching relevant market returns.
There are a plethora of ETFs and mutual funds available for investors. So how do you choose the best fund? (more…)
There are many variables that make successful investing a challenge.
And one of your biggest foes may just be you.
What do I mean by this? (more…)
Knight Kiplinger, head of Kiplinger financial media, created a nice asset management video.
8 Keys to Financial Security is exactly that. Tips for protecting your assets and growing wealth.
As per usual, I add my two-cents to Mr. Kiplinger’s wealth management recommendations. (more…)
A relationship exists between investment risk and expected return.
The safer the asset, the lower the expected return. The greater the investment risk, the higher the required return. Or it can be a tad more technical if you like.
Investors should take an objective view of investment risk. Unfortunately, investors tend to be emotional creatures and these volatile times lead people to become fearful of investment risk.
So what is happening? And what should you do as an investor? (more…)
I mentioned Benjamin Graham in “Mistakes of Warren Buffett” and recommended his book, “The Intelligent Investor”.
Benjamin Graham mentored Warren Buffet and is considered the founder of value investing.
Today, a quick summary on Benjamin Graham and his three key principles for value investing. While they may not turn you into the next Warren Buffett, these investment tips will make you a better investor. (more…)
Is a crash in the markets coming?
I am not sure.
If one does occur, experts will look back and see many clear warning signs. And there are a multitude of red flags.
However, governments, banks, investment companies, and the like, are doing their best to avoid a calamity. (more…)
Should investors be buying gold?
A good question for today.
An equally good question is should you rely on expert advice? (more…)
There are two simple ways to rebalance your investment portfolio.
While these methods work best for investments in diversified assets such as mutual and exchange traded funds, they can also be employed for non-diversified assets as well.
Perhaps your target asset allocation is 70% U.S. equities and 30% U.S. bonds. Within the target allocation you have an acceptable absolute range of +/- 10%. After your latest portfolio review, you find that your actual asset allocation in 55% U.S. equities and 45% U.S. bonds.
You need to bring your portfolio back in line with your target allocation.
What do you do? (more…)
The share price of certain companies or funds can become quite high over time.
That is one reason why many companies split their shares once they reach a certain value. To make the shares affordable to a wider range of investor.
For example, should you wish to acquire even one share of Berkshire Hathaway Inc. (BRK-A) class A shares, you would require just under USD 112,000.00 as at June 13, 2011. A little too expensive for most individual investors.
And for smaller investors, even stocks like Google Inc. (GOOG) at about USD 505.00 or Apple Inc. (AAPL) at about USD 330.00 might be too dear for inclusion in a diversified portfolio.
So what does one do? (more…)
A potentially legitimate concern about buy and hold investing is that it underperforms active management during fluctuating and bear markets.
Today we will review how to protect your wealth during periods of market volatility when using buy and hold.
A few points come from my general long-term investment philosophy. One that attempts to build such safeguards automatically into one’s portfolio.
A few other thoughts will involve tweaks to the traditional buy and hold methodology. Tweaks that hopefully will improve on its performance. (more…)
Please subscribe to the Personal Wealth Management RSS feed for free, easy access to new posts.
© 2009-2012 Personal Wealth Management All Rights Reserved
