Why Does Active Investing Flourish?

Month: March 2015

March 31, 2015  |  

Why Does Active Investing Flourish?

Earlier this month, I had the opportunity to run an educational workshop at the SPA/AAP Pediatric Anesthesiology 2015 Meeting. The workshop was entitled “Evidence-Based Investing and Financial Planning.” We covered the 12 most important insights about evidence-based investing and how those insights can be applied to a rational financial planning process. Evidence-Based Investing is the alternative to the traditional active form of investing, which depends on forecasting future markets, picking winning stocks and otherwise relying […]

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March 27, 2015  |  

Using 529 Plans for College Funding – Part 2 Real world case study

Key Takeaways When it comes to 529 plans for our clients, we recommend those that meet our firm’s overall philosophy about investments—and costs. The earlier you start saving the better. If you wait until your child is say, 10 years old, you would need to sock away $14,000 a year to have $150,000 on hand by the time your child is age 18. Here’s the good news. Contributors may earn state income tax deductions on […]

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March 27, 2015  |  

Using 529 Plans for College Funding – Part 1

Key Takeaways 529 plans are tax-advantaged education savings accounts operated by state or educational institutions. In most types of 529 plans, earnings are tax-deferred while in the account, and tax free when withdrawn for qualified education expenses. Some states, including Pennsylvania, allow your contributions to be deductible at the state level. As with so many other important investments you make, it’s about more than just returns–you have to look carefully at fees and tax implications. […]

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March 16, 2015  |  

What is the Backbone of an Evidence-Based Portfolio?

An accumulation of studies since the 1950’s has identified three risk factors that form the backbone of an evidence-based portfolio. They are:  The Equity Premium – The additional return investors should expect to earn for taking the risk of investing in stocks rather than short-term bonds. (6.27% per year since July, 1926)*  The Small Cap Premium – The additional return investors can expect to earn for taking the risk of investing in small stocks versus […]

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March 11, 2015  |  

Traditional versus Roth contributions: What to consider – PART 2

See Part 1 of this blog post here.[PR1]  What’s best for me? When determining which contribution is a better fit for you, understand that there is no single right answer for everyone.  The contribution that’s best for you will be determined by your personal situation.  Ask yourself the following 5 questions before making your decision: Do I qualify?  Retirement plans have thresholds you cannot exceed related to your income and how much you plan to […]

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