Video: Should You Use Alternatives?
In this 5-minute video, a panel of Vanguard's U.S. and international investment strategists discusses alternative investments; what they are, how they work, and whether you should consider investing in them.
Q&A: No Friend Investing
I currently have an Roth IRA with Ed Jones and would like to open one with Vanguard. Can I have more than one open at a time? I'm trying to refrain from having to cancel my "Ed" account because my broker is a relative and a good friend.
Q&A: Young and Smart!
I am an eighteen year old college student and currently I have a high risk portfolio. Should I try to become even more diversified and branch out to growth, mid cap, large cap, emerging markets, ext?
High Fee Ferraris
Good investment advisors deserved to be compensated, but how much is fair? If your 34-year old advisor is driving a Range Rover, Porsche Cayenne, and not one, but two Ferrari’s; are you making as much as you could?
Better Investing Through Napping
Chuck Jaffe suggests that investors would be better off being less connected to the latest "investing" news and analysis. Instead of looking for a hot investing app, relax and take a nice nap. I couldn't agree more. On the path to becoming a real investor, less is more.
The Question: To Save or Not to Save
An often stated regret is, “I wish I would have started saving and investing when I was young, just think what I’d have saved now for retirement!” Time is on our side when we’re young, not so much as we near retirement.
Video: How Much Will You Need?
How much retirement income is enough? In this Dimensional Funds video, Marlena Lee, PhD, explains that the answer should be customized based on each individual's lifestyle and income prior to retirement:
Bond Forecasting Failures
U.S. bond yields have been below their historical long-term averages for some time now. But history has shown that just because yields are low doesn't mean that they have to move higher.
Perpetuating the Psychic Myth
One New York Times senior economic correspondent seems to be spending way too much time hanging out with Wall Street's self-proclaimed "experts," rendering him unable to provide real investing commentary.
Bonds: Managing. Not Predicting.
There's a school of thought that says the best way to manage a fixed income portfolio is to base your investment decisions on where you think interest rates are headed. But what if expectations are changing all the time?
Q&A: The Agony of the Fees
Q: I'm 43 years old, I currently have my Roth IRA and my 401K with Fidelity. I was very interested in purchasing the fund that you guys recommend (VTWSX) in my Roth. Fidelity offers it but with a $75 initial transaction fee and a $5 fee with each additional reinvestment purchase.
America's Risky Portfolio
Americans have overcome the disastrous devaluation our net worth that occurred in 2008. According to the Federal Reserve the total net worth of all American households is 20% higher than it was at the beginning of 2008, totaling 81 and a half trillion dollars.
DIY vs. DIWH (with help)
Investors have to decide how they will invest their money and who will help them do it. Most investors choose the do-it-yourself (DIY) route. Others choose to hire a professional financial advisor to develop a well-thought-out financial plan and invest in alignment with that plan.
Mastering Mental Money Mines
In our last piece, “Mind vs. Money” we explored how our deep-seated “fight or flight” instincts generate an array of behavioral biases that trick us into making significant money-management mistakes. Find out how you can avoid sabotaging your own best-laid, investment plans by recognizing the signs of behavioral booby traps.
Timing CAPE?
As broad market indices such as the S&P 500 have set new record highs in recent weeks, many investors have become apprehensive. They fear another major decline is likely to occur and are eager to find strategies that promise to avoid the pain of an extended downturn while preserving the opportunity to profit in up markets. Is there salvation in the CAPE?
Hedge Clipping
The “smart money” has been using for hedge funds for decades. But, how smart are hedge fund as investments? Not very! But there may be hope for those who rely (or hope to rely) on pension funds.
Two-Fund Solution
The amateur tennis player’s winning strategy should be getting the ball over the net and let his opponent make a mistake. Similarly, investing should be a game of earning market returns and letting someone else make the mistake of timing the market. How can a do-it-yourself invest accomplish this?
Risks of Taking No Risk
We love certainty. Unknowns are frightening. This is why many retirees opt for the guarantees provided by immediate annuities. With guaranteed income streams currently being quoted in the 6 to 7% per year range, the returns sound impressive, but are they?
Don't Be a Loser
How are investing and tennis related? Like winning a tennis match against professional players, beating the market "professionals" is probably a loser's game.