Insights

The Financial Perils of Old Age

Failing to properly plan for the costs associated with aging can have dire consequences for the retirement you envision. Larry Swedroe unpacks a resource to help investors navigate the many financial aspects of elder and long-term care. In planning for retirement, most people—and their advisors—consider issues such as: How much savings will be needed to…

Is a Million Bucks Enough to Retire?

Tim Maurer offers a simple retirement stress test and asks what is perhaps the better question: What number works for you? “Wow, those guys must be millionaires!” I can recall uttering those words as a child, driving by the nicest house in our neighborhood—you know, the one with four garages filled with cars from Europe. The…

Does Active Management Pay in Bond Markets?

Larry Swedroe examines a new study that highlights the negative relationship between activity and performance in bond funds. Does it pay to be active in fixed-income markets? To help answer that question, Martin Rohleder, chair of Finance and Banking at the University of Augsburg, examined the performance of active fund managers in his December 2017…

Fixed Income Quick Take: In-State vs. Out-of-State Bonds

Fixed Income Advisor Steve Wiechel explains how the fixed income desk determines which is best for each individual client. In-state or out-of-state municipal bonds? Fixed Income Advisor Steve Wiechel explains how the fixed income desk determines which is best for each individual client.   By clicking on any of the links above, you acknowledge that…

The Four Horsemen of Your Portfolio

When it comes to secure retirement, today’s investors face some major hurdles. Larry Swedroe unpacks the threat, and offers some solutions to help improve financial outcomes. A common axiom is that those who fail to plan, plan to fail. And while most people would never start a business without a business plan, many investors manage…

Value May Be Down, But It’s Not Out

Larry Swedroe concludes it’s premature to give up on the value factor, but also that its premium has only been earned by investors disciplined enough to stay the course through sometimes long periods of underperformance. As the director of research for Buckingham Strategic Wealth and The BAM Alliance, I’ve been getting lots of questions about…

Active Management Can’t Crack Inefficient Markets

Larry Swedroe unpacks the newly released year-end 2017 SPIVA report and its look at active management’s underwhelming performance. Since 2002, S&P Dow Jones Indices has published its S&P Indices Versus Active (SPIVA) scorecards, which compare the performance of actively managed equity mutual funds to their appropriate index benchmarks. The 2017 report includes 15 years of data. Following…

Active Management Fails in Fixed Income

Larry Swedroe explains why active bond fund managers not only fail to outperform, but may also offer investors only the illusion of portfolio diversification. There is a myth that active bond fund managers want and need you to believe. It goes something like this: “Sure, active stock picking isn’t likely to work, but in fixed…

Persistence Among Active Managers Remains Elusive

The latest SPIVA scorecard is out, and Larry Swedroe unpacks results that show persistence in performance beyond the randomly expected remains out of reach for active managers. Since 2002, S&P Dow Jones Indices has published its biannual Indices Versus Active (SPIVA) reports, which compare the performance of actively managed equity funds to their appropriate index benchmarks….

Investing Lessons from 2017

Larry Swedroe unpacks lessons one through three from 2017. Every year, the markets provide us with lessons on the prudent investment strategy. Many times, markets offer investors remedial courses, covering lessons it taught in previous years. That’s why one of my favorite sayings is that there’s nothing new in investing—only investment history you don’t yet…

More Investing Lessons from 2017

Larry Swedroe resumes his list with 2017’s lessons four through seven. Earlier this week, we began discussing what the markets taught us in 2017 about prudent investment strategies. We tackled lessons one through three then, so today we’ll resume with lessons four through seven. Lesson 4: Don’t make the mistake of recency. Last year’s winners are…

Yet More Investing Lessons from 2017

Larry Swedroe concludes his list with 2017’s lessons eight through 10. Every year, the markets offer lessons on the prudent investment strategy. So far, we’ve covered what they taught us last year in lessons one through three and four through seven. Today, we’ll finish off 2017’s list with lessons eight through 10. Lesson 8: Hedge funds are not…

Mutual Fund Ratings and “Category Kings”

Larry Swedroe explores how awarding star ratings and crowning “category kings” can influence investor (and manager) decisions. To date, an overwhelming body of academic research (including on active share as a predictor) has demonstrated that a mutual fund’s past performance not only fails to guarantee its future performance (as the required SEC disclaimer states), but…

Don’t Write Off Value

Larry Swedroe takes a look at the data and builds his case for why investors should continue to expect a value premium going forward. Recency bias—the tendency to give too much weight to recent experience and ignore long-term historical evidence—underlies many of the mistakes commonly made by investors. It’s particularly dangerous because it causes investors…

The 2016 Election and Your Financial Plan

Whatever your views of the candidates on the ballot next week, given the length and pervasiveness of election coverage this cycle, it’s natural to have a sense of uncertainty regarding how the outcome of the election will affect your life and, in particular, your financial plan. In times like these, when the “stomach acid test”…

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