REITs (and REIT index funds in particular) are a good diversifier of performance within an index portfolio. Here are four reasons why adding a "separate slice" to REITs might be a good idea. Real estate investment trusts (REITs) are companies that own and normally operate real estate properties that generate income from leases and financing of property purchases. If you already own a U.S. … [Read more...]
Vanguard Changes Index Benchmarks
Vanguard announced in June 2015 it was planning changes to its benchmarks for foreign index stock market funds. Those changes start now and it is good news for investors. The News Vanguard announced on November 1, 2015 that its Emerging Markets Fund (VEMAX/VEIEX/VWO) will now start to transition to a new tracking index over a 12-month period. The change will be to an index that covers a larger … [Read more...]
How to Manage and Rebalance Multiple Accounts
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...]