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…)
On 04/15/2012, In Investment Concepts, Investment Strategies, By Jordan Wilson
On 04/12/2012, In Investment Concepts, Mutual Funds, By Jordan Wilson
In the U.S., the Standard & Poor’s 500 stock index (S&P 500) is up 12.6% year to date 2012.
That is the good news. The bad?
Your mutual fund is likely not meeting or exceeding this benchmark.
Why the underperformance against investment benchmarks? (more…)
On 01/30/2012, In Investment Strategies, Learning to Invest, By Jordan Wilson
Many readers are a long ways away from retirement.
Messing up on retirement is not yet on one’s radar.
But it should be.
And the sooner you realize how people mess up retirement, the easier it is to avoid problems. (more…)
On 01/28/2012, In Investment Strategies, By Jordan Wilson
Can you summarize your investment philosophy in 10 words or less?
Can anyone?
After all, investing is a complex subject. (more…)
On 12/03/2011, In Exchange Traded Funds, Mutual Funds, By Jordan Wilson
I like Vanguard investment funds for long term individual investors.
Especially investors who follow a passive management style.
As I am not directly or indirectly compensated in any way by Vanguard I recommend them based solely on their merits.
That is not to say that other funds are poorer choices. I recommend a wide variety depending on a client’s investment objectives, desires, and available offering in their home jurisdiction. I believe in a “best of breed” approach for clients, not what is best for my revenue. And within the “best of breed” options, Vanguard funds pop up with regularity.
Why is this so? (more…)
On 09/30/2011, In Investment Strategies, By Jordan Wilson
For most individual investors, I believe that a passively managed, well diversified investment portfolio is the best approach for long term success.
I do not believe that paying higher fees for active management brings superior results over the long run. Instead, minimize investment costs and stick to index funds for the majority of investments. Let portfolio returns compound in your investment account, not in the pocket of an investment advisor or financial institution.
I have written extensively as to why I believe in this strategy.
Today, a little more evidence that a passive approach outperforms an active one. (more…)
On 05/12/2011, In Investment Strategies, By Jordan Wilson
Index benchmarks for passive investment management are an ideal fit.
And quite easy to implement.
After all, with passive investing you are simply trying to replicate the market (as represented by the relevant index). So it is simple to find an index for comparative purposes.
But there are a few things to remember when benchmarking under a passive approach. (more…)
On 12/15/2010, In Exchange Traded Funds, By Jordan Wilson
Today we will look at life cycle or target date funds.
In this post we will focus on exchange traded funds (ETFs). But be aware that there are also life cycle mutual funds.
Some technical differences between the two, but the fundamental principles are the same. (more…)
On 12/06/2010, In Exchange Traded Funds, By Jordan Wilson
To date, we have focussed on passively managed exchange traded funds (ETFs).
But ETFs may also be actively managed.
Quite a new development, but some investors consider them a sexy investment.
You can decide by the end of this post how attractive they are for your portfolio. (more…)
A goal of passive investing is to match the market return as closely as possible.
However, it is not a given that a passively structured investment will match the market. In fact, there may be material variations between different investments and the benchmark index.
Index funds (both mutual and exchange traded) are typical passive investments. Here is why they do not normally match their benchmarks. (more…)
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