Investment Planning Insights

Are You A 1%’er?

The IRS recently released a report with some interesting data on income trends in America. As you would expect, it takes a lot to get in the top 1% of all taxpayers. Here are some of the stats.

What If Investment Performance Was Based On Luck?

Part of our job as advisors is to help clients select the best investment vehicles available to them.  Many of our clients initially believe that involves picking funds with the best performing managers in the future.  Ideally, they would be right.

The Unintended Consequences Of The Tax Law

With the passage of the Tax Cuts and Jobs Act, millions of Americans will see two broad themes. First, personal exemptions are eliminated and itemized deductions are being curbed with the reduction in the state and local tax deduction. Individuals are finding that their taxable income is going to be higher in 2018.

Amending Warren Buffet’s Golden Rule

One of the more damaging pieces of advice to the average investor is Warren Buffet’s famous investment rule: “Rule No. 1: Never lose Money. Rule No. 2: Never forget Rule No. 1.” While this folksy wisdom has a great ring to it, it can be easily taken out of context.

In a World of Financial Noise, Be Wary of Predictions

Investors are constantly bombarded by what can only be described as noise about investment markets. Today, more than ever there's a continuous crush of headlines and Twitter feeds, as well as television and radio programs, that collectively provide ceaseless hype, misinformation and biased views.

The Wine Lovers’ Guide to Investing

Savoring a vintage wine is one of life's great pleasures. But often overlooked in the joy of consumption is the carefully calibrated journey from grape to glass. Similar levels of care are critical to good investment outcomes.

The Active Passive Powerhouse

For years it has been assumed that you have to be either an active or passive investor. It is also assumed (depending on which camp you're in) that one is better than the other. In my opinion, the argument over active vs. passive management can be put squarely to bed. And the answer to which investing strategy we use is...Both. This is called evidence-based investing, and it is a strategy used by a company whose funds we are extremely fortunate to use on our clients' behalf ---Dimensional Fund Advisors (DFA).

“Sixty Percent Of The Time, It Works Every Time”

You may recognize the quote in the title from the movie Anchorman. This can be a lot like stock pickers, pundits, and TV personalities. You should run from anyone who is using prediction for the basis of advice.

The Smartest Person in the World Can Still Be a Terrible Investor

Have you ever felt intimidated by the markets? Thought that investing was only for brilliant people?  Maybe you hear jargon like “beta,” “derivatives,” or “standard deviation,” and it just goes over your head? Contrary to what you may think, you can be the smartest person in the world and still be a terrible investor.