Experts and pundits are notoriously bad at forecasting, in part because they aren't punished for bad predictions. Also, they tend to be deeply unscientific. Moreover, most of us engage in constant forecasting without even realizing it, and that can have an important impact on the way we think about investments. This podcast from Freakonomics Radio will help you rethink the subconscious ways in which we all take forecasting risk. The psychologist Philip Tetlock is finally turning prediction into a science -- and now even you could become a super forecaster.
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The DFA emerging markets core equity fund applies a passively managed strategy that offers exposure to a broad base of equities in numerous emerging markets. The fund's main objective is to outperform the MSCI Emerging Markets Index by dipping further into more smaller market capitalization stocks. This sustainable strategy makes the DFA emerging markets fund a great choice as core holding.
The fiduciary rule will help to ensure that financial institutions act in investors’ best interests when providing retirement advice.
Do you understand what diversification does for your portfolio? While people generally know diversification is a good thing, they’re often not sure exactly how or why. Academic research has shown that investors don’t understand diversification's impact on volatility and expected returns.
In prior months, this letter has provided guidance on how much and why you should be saving for retirement. As a refresher, previous letters are available here. This month, we’re talking about the different retirement saving options available to employees and the contribution limits for each option.
The Loomis Sayles Bond fund is a credit intensive fund that is invested in domestic and international high yielding corporate debt. What sets Loomis Sayles apart from the other high yield bond funds is their contrarian view towards the high-yield bond market. The manager of Loomis Sayles, Dan Fuss, has recently expressed his confidence in the high-yield debt market and his overall investment strategy, exclaiming that, “the focus is on security selection.” Loomis Sayles continues to be bullish on high-yield debt and remains focused on the long term cycle of the high-yield bond market....
Are you really worse off after the recent drop in stocks?
From the perspective of your overall financial health, a big jump in stock prices ain’t all it’s cracked up to be. Nor is a drop in stocks as damaging as you might fear. This is the “Even Steven” concept – you lose something in one part of your plan, but you gain it back in another.
Have you checked the Ascensus website for an estimate of your lifetime income? This is a great way to look at your retirement nest egg.
According to the Social Security Administration, nearly 90% of people 65 and older receive monthly Social Security benefits with the average monthly benefit equal to $1,335.
The vanguard REIT Index fund is one of the least expensive ways to gain exposure to the real estate equity market. Even though this fund has seen more volatility in the last twelve months when compared to the average REIT fund, the risk-adjusted return has also been higher. The index fund's performance has replicated this by being one of the leading performers in it's category for the 3, 5, and 10 year periods.