The Safe Savings Rate

Tag: equity market

November 28, 2015  |  

The Safe Savings Rate

Key Takeaways • Where it all started–the safe withdrawal rate. • My transition to the safe savings rate—the amount of income you need to sock away for retirement. • A comprehensive financial plan is best, but off-the-shelf tools and two popular “rules of thumb” can help. The Safe Withdrawal Rate About 20 years ago, a […]

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June 5, 2015  |  

Why Stock Market Forecasting is Usually Worthless

Even after all these years, the debate over “active” versus “passive” management continues to be a hot button issue in the financial services industry. The idea of stock market forecasting (i.e. market timing) is a concept on which conventional wisdom is based. This belief also just happens to be supported by several powerful industries (Wall Street and the financial media) worth trillions of dollars.

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May 12, 2015  |  

Research Confirms That Active Management Disappoints Investors

The evidence is clear, active investing offers a hollow promise of outperformance. Key Takeaways Most active managers can’t beat the markets long term. It’s not because they’re lacking in intelligence—it’s because their costs are too high and they have too much portfolio turnover. Successful fund investing is about more than picking past winners. Consider a […]

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April 14, 2015  |  

Exploring the Human Factor

Despite everything we know about efficient capital markets and all the solid evidence available to guide our rational decisions … we’re still human. We’ve got things going on in our heads that have nothing to do with solid evidence and rational decisions – a brew of chemically generated instincts and emotions that spur us to […]

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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 […]

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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 […]

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March 10, 2015  |  

Traditional Versus Roth Contributions: What to Consider – PART 1

Key Takeaways The decision to make Traditional or Roth contributions to retirement plans adds an extra layer of complexity to investing. Traditional contributions allow participants to defer tax until funds are withdrawn, while Roth contributions allow participants to pay tax up front, so there’s no tax obligation upon withdrawal. When deciding what type of contribution […]

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