The Momentum Factor: Fundamental or Price?

Momentum is the tendency for assets that have performed well (poorly) in the recent past to continue to perform well (poorly) in the future, at least for a short period of time. The momentum effect is one of the most pervasive asset pricing anomalies documented in the financial literature: Stocks with the highest returns over […]

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Topics: Advice, Market Insights

Valuations and the CAPE 10: A Metric in Dire Need of Context

With the Shiller CAPE 10 near 30 (29.7 as I write this), it’s likely you have been reading articles that quote gurus who claim the market is on its last legs/breath due to excessive valuations. And the amount of calls I’m getting from concerned investors (especially, it seems, those who hold a certain set of political beliefs) has […]

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Topics: Advice, Investing

Retirement Plans: Crucial Conversations

Have you discussed your retirement plans with your spouse, partner, parents, children or friends? Your retirement will have an impact on them, and importantly, they will have a profound effect on your retirement. Yet, a surprisingly small percentage of us have had timely and helpful conversations that could be crucial to our future retirement success. […]

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Topics: Advice, Retirement

Avoiding a Long-Term Care Crisis: Planning Is the Only Cure

Long-term care may soon overtake Social Security and Medicare as our country’s most pressing social challenge. With an enormous and rapidly aging baby boom population and the rising cost of delivering healthcare, long-term care looks like a national crisis in the making. However, it need not be a personal crisis. With forethought and careful financial […]

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Topics: Advice, Retirement

Enticing Retirement Plan Participants to Save

As an advisor to company-sponsored retirement plans, I meet on a regular basis with participants of those plans. When I first started working in this area, I was surprised to find a wide variety in the level of understanding participants had about their plan and the education they had received from their prior experiences with […]

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Topics: Retirement

Estate Planning Includes Preparing Your Heirs

Prepare your assets for transition to your heirs, but also prepare your heirs to receive your assets. Larry Swedroe explains why the success of an estate plan may depend on preparing families for the transfer of values as well as wealth. Find it on AdvisorPerspectives.com. By clicking on any of the links, you acknowledge that […]

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Topics: Retirement

Annuities…The Good, the Bad and the Ugly

Too often, I’ve heard this all-too-familiar story. A client brings in an annuity policy to review, either for themselves or a family member. They bought it to create a steady annual flow of income on later life, as insurance against unexpected longevity. But what we see is a jaw-dropping set of numbers that reveal poor […]

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Topics: Advice, Investing

An Integrated Investment Plan Is Key

Earlier this week, we looked at the importance of incorporating different types of risk—specifically, human capital risk—into an overall financial plan. Today I will focus on mortality and longevity risk, and using “tax alpha” strategies to improve the odds of achieving your financial goals. Mortality Risk For those families whose human capital makes up a substantial […]

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Topics: Investing, Investment Strategy

Europe’s SPIVA Results Are Nothing New

Earlier this week, I provided some highlights of from the S&P Dow Jones Indices Versus Active (SPIVA) 2016 U.S. Scorecard. Today we’ll look at the SPIVA Europe Scorecard, which compares the performance of actively managed equity funds to their appropriate index benchmarks. The year-end 2016 Scorecard provides us with 10-year data. While not surprising to those familiar […]

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Topics: Advice, Investing, Market Insights