It is easy to accumulate multiple investment accounts. While it may not always be practical to consolidate them, there are effective strategies to simplify their management and track your asset allocation. It is not dangerous to use just one firm for all accounts, as long as it is reputable mutual fund firm using a third party custodian. Here is a pretty realistic breakdown of investment account … [Read more...]
Robo Advisors: Easy or Too Easy?
Robo-advisor services are sold to investors looking for an easier way to invest. There are added costs, but even worse, Robos do not involve the investor very much. They even use that aspect as a selling point. They program the decision-making process. Investors should not be shortchanged in the processes of studying, considering, understanding, and then deciding each portfolio investment. … [Read more...]
Why I Said “No” to Peer-to-Peer Lending
Recently, investors in my state ((Lendingmemo.com lists the current availability for each state)) became eligible to invest in peer-to-peer lending at Lending Club, so I decided to investigate whether it was worth pursuing. If you are considering this as an investment, please read this post and other reviews first. I will link other reviews at the end of the post. Most of this post is from … [Read more...]
If You Slice and Dice
I am a little hesitant even to do a post like this. Simplicity rules. For most people, a three-fund portfolio, containing a total domestic stock, total foreign stock, and total bond market fund, is all you really need. Another simple option is the four-fund portfolio, which adds domestic Real Estate Investment Trusts (REITs). (Note both REITs and bonds should be located within tax-advantaged … [Read more...]
Predicting the Future
If past performance is no guarantee of future results, then how can I estimate what will be the future return of my entire portfolio for the particular risk level I am taking? John C. Bogle, in his 1999 book "Common Sense on Mutual Funds" emphasizes an Occam's Razor approach to investing, particularly when you index your portfolio to broad market indices. He looked at all 10-year periods … [Read more...]