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 01/30/2012, In Investment Strategies, Learning to Invest, By Jordan Wilson
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 12/08/2011, In Financial Advisors, Investment Concepts, By Jordan Wilson
I read an article entitled, “Are You Saving Too Much for Retirement?”
I think it is a good article to discuss. No, the article itself is not good. Far from it. Rather this type of article is good to discuss. A big difference. (more…)
On 10/31/2011, In Investment Strategies, By Jordan Wilson
I am a proponent of passive investing.
That means investing in passively managed index funds that track a specific market sector. Primarily, exchange traded (ETF) or open ended mutual index funds.
Research indicates that actively managed portfolios tend not to perform better than passive portfolios. And actively run portfolios cost investors more money in fees and expenses than passive.
So why take an active approach? (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 09/11/2011, In Exchange Traded Funds, Investment Strategies, By Jordan Wilson
I consider John Bogle to be the father of index investing. And for those who follow this blog, you know that I am a fan of passive investing utilizing index funds.
As founder of the Vanguard Group, Mr. Bogle has built a mammoth investment company over the years.
So when Mr. Bogle speaks, his comments are worth listening to. (more…)
On 07/05/2011, In Investment Strategies, By Jordan Wilson
In How to Rebalance an Investment Portfolio, I stated that it is generally preferable to reallocate future acquisitions rather than divesting existing assets to get back to your target asset allocation.
A big reason for this is to defer capital gains taxes payable from selling outperforming assets. The longer you keep your wealth in your possession, the better your compound returns will be. This is a problem when triggering taxes on asset sales. (more…)
On 05/24/2011, In Investment Strategies, By Jordan Wilson
Warren Buffet has done exceptionally well as an investor and businessman over the long run.
That said, I do not believe that the average investor can emulate Buffet’s approach.
But Buffet, in his folksy Nebraskan way, does offer some great advice.
This linked article from Business Insider shares 15 of his top short snappers.
A few thoughts from my side on some of the points Buffet makes. (more…)
On 02/23/2011, In Personal Finance, By Jordan Wilson
If you are approaching retirement age, do you have enough capital to retire comfortably?
Or, if you are many years from retirement, do you have a proper investment plan in place? One that will ensure you have adequate retirement funds down the road?
In fact, many people about to retire do not have enough capital saved.
So this is a crucial issue for both older and younger investors. (more…)
On 01/12/2011, In Investment Strategies, Investor Profiles, By Jordan Wilson
In creating an Investment Policy Statement (IPS), you need to conduct a comprehensive investor profile. Who you are as an investor and what you want to achieve.
Part of this requires assessing your current financial situation, as well as investment related objectives and constraints.
But it is also important to factor into your analysis three key variables. These are: investment time horizon; current phase of life-cycle; risk tolerance level.
Let us take a look at these crucial areas . (more…)
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