Every living American will die, but more than half of them have not made adequate—or even any—preparations for that inevitable event. A recent survey by Lawyers.com found that about 60% of Americans do not even have a basic will. In addition, about 70% do not have a living will or health care directive. Only 27% have a medical proxy and […]
Client Letter – Q2 2004
Much of Wall Street and the financial media are geared up to get you to make investment moves. “Buy, sell, trade, exchange, invest,” are among the verbs they shout at you every day. Few tell you that it is probably better to do little or nothing once you have set up a diversified investment portfolio. Consider this: Assume you invested […]
Inflation-protected U.S. bonds are set to take off
As interest rates are poised to rise from their current record lows, bond owners are worried about being stuck with their current fixed yields. But not every bond owner is worried: the growing number who have purchased Treasury inflation-indexed securities are confident they will stay ahead of higher rates and higher inflation. The U.S. Treasury in 1997 began offering the […]
Unrealistic expectations threaten your retirement
Don’t fall into the trap that has grabbed a lot of your fellow workers: they have unrealistic expectations about investment returns and retirement assets and face disappointment in their golden years. A recent survey by Merrill Lynch uncovered some not so surprising mistakes workers are making in their retirement planning. Two of the top concerns of the 1,100 survey participants […]
Magellan’s woes: It isn’t easy to beat the index
Once upon a time there was a mutual fund named Fidelity Magellan that seemed to do no wrong. Under the leadership of its dynamic portfolio manager, Peter Lynch, the fund racked up an eye-popping average annual gain of 29% over 13 years. Investors took notice and poured billions of dollars into the fund, making it the largest stock mutual fund […]
Muzzle your urges, boost your return
The stock market has delivered an average annual return of 12.9% over the 20 years ended in March, and individual investors have had access to plenty of decent stock mutual funds that have come close to that return. Why, then, has the average investor realized vastly inferior returns over this period? A study performed last year by DALBAR, an independent […]
Low savings rate threatens American retirees
Despite all the attention being paid to the problems that may be caused by the imminent retirement of the Baby Boomers and the threat to Social Security, most Americans still aren’t saving enough money for retirement. A new study identifies groups that are most at risk for income shortfalls in retirement. Number one on the list is the low-income single […]
Where to find real stock market value
Many investors have a vague notion that “small” stocks and “value” stocks are something they should consider for their portfolios. Yet the average investor’s portfolio is often more “market-like,” that is, invested in big U.S. growth stocks. So where do value and small stocks fit in and why would an investor want them? The answer is very important for long-term […]
Client Letter – Q1 2004
The real danger to our wealth is not inflation or risky stock markets or federal budget deficits. Instead, the simple mistakes most investors make hurt them far more than any outside market or economic forces. An investor with a diversified portfolio who is patient and waits out temporary slumps in the markets has a high chance of making his wealth […]
Supercharging an indexed portfolio
Let’s say you have made the breakthrough to indexed investing. You no longer believe that some swaggering Wall Street money manager can consistently beat the market for you. You no longer want to pay high fees to take that risk, and have decided on a more rational course. Great—you’ve come to the conclusion shared by a lot of other very […]
