For many investors, their workplace retirement account is the largest nest egg they’ll accumulate. Whether your option is a 401k, 403b, or 457, recently the message has become loud and clear: tax-deferred savings are something to take advantage of. If you’re contributing to your retirement account at work, good stuff. Now onto the next hurdle: how much should you be contributing?… [Read More] Don’t Trust Your 401k’s Default Contribution Rate
We believe that an investor's behavior can seriously impact their market returns. This category page is dedicated to informing our readers of certain behaviors that are known to damage investor's returns over time. We also discuss strategies to avoiding these damaging behaviors.
Happy Stock Market Games, and may the odds be ever in your favor! If you took an investing class in high school or college, you likely played some variation of a stock market game. You know, that game where teams try to obtain the best investment returns over a semester, month, or set period of time.… [Read More] Stock Market Games Encourage Poor Behavior
I’ve recently been reading the fourth edition of Jim O’Shaughnessy’s What Works on Wall Street. One of the topics covered early on by Jim is why statistically based models beat human forecasters. To summarize, it’s all about our human inability to make emotionless decisions. Models never vary. They display an utter lack of emotion that we’ll never… [Read More] On Cognitive Biases and the 2015 Masters
When it comes to investing, risk tolerance is the amount of risk you’re willing to take as an investor. We all have to take some degree of risk to enjoy any type of return. Different investors are comfortable with different levels of risk taking. Some advisors and investors like to categorize risk as being aggressive,… [Read More] Risk Tolerance Shouldn’t Change with the Market
So you’ve found an investment advisor you’re potentially interested in working with, sounds great. What are the important questions you need to ask him or her before getting started? As an advisor, I know a few questions that investors absolutely need to ask. Unfortunately, these aren’t always the questions that get asked. What Should I… [Read More] Important Questions to Ask an Advisor
What’s your worst enemy when it comes to investing? Well, for starters the answer is a who, not a what. It’s not Janet Yellen, President Obama, or Mario Draghi. You are your own worst enemy. That’s right! Josh Brown of Ritholtz Wealth Management recently blogged over on his site (The Reformed Broker) about this topic… [Read More] An Investor’s Worst Enemy