Your 401(k) marketing materials make the following message loud and clear. 401(k) participants do not have the necessary experience, training, or knowledge. They cannot manage their own 401(k) accounts. Your 401(k) provider (Schwab, Fidelity, Vanguard, etc.) offers a...
Since 2008, investment management experts have predicted the death of the “balanced” portfolio. I am speaking of 60% invested in stocks. And 40% invested in bonds. It turns out 2022 was a close repeat of 2008. When 401(k) investors needed “diversification” and “asset...
“We’ve had three 100-year floods in the last 18 months. This one looks like a 1,000-year flood.” – Congressman Pete Olson of Texas (source: NPR) The historic amount of rainfall caused by Hurricane Harvey last month caused flooding in the city of Houston. This...
Every financial services company commercial, brochure, and web site tells you that it is always a great day to be 100% invested in the stock market. Buy-and-Hold pie chart based computer-generated models based on the Modern Portfolio Theory of investment management...
Bond mutual funds have lost money in 2013. Even worse, bond funds this year are down in price more than their current yield can recover. In the last five years from December 1, 2008 to December 1, 2013, the Vanguard Total Bond Market ETF (BND) is up about 6.78%. Over...