Success with investing means not only saving on investment costs and selecting the right allocation, but also having the confidence from knowledge. One of my biggest concerns about the trend towards robo-investing is that, at its core, the presumption is savers do not want or need to be bothered with knowledge or in-depth understanding about their investments. One online session does it all! … [Read more...]
How to Tune Out the Noise of Financial Markets
The fastest way to investment failure is listening to the siren song of the financial markets to "do something." Here are four strategies to help you tune out the noise and stick to your plan. Interest rates might rise. ISIS may strike again. US stocks are overvalued. The US dollar is too strong. Economic growth is too slow...this constant barrage of news is designed to make you act - to do … [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...]
Five Essentials for Financial Wealth
Creating financial wealth requires understanding five essentials; investing concepts that really work if you apply them to all your investment decisions. It would be nice if we could all make investments like a machine, and "set it and forget it," but because we are human, it is near impossible to do. We are emotional creatures, not Mr. Spock. Even so, knowledge is power. Consider these five … [Read more...]
Are You Content With Your Stock Exposure?
Coping with volatile stock markets means having stock exposure that is tailored to your individual risk tolerance. When set correctly, you will not lose sleep when there is a correction...like the one happening now. Don't do something, just stand there. - John Bogle If you have to do something, re-assess your risk tolerance. - NoRobo Guy As I write this, the stock market is down … [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...]