Asset Geography Pitfalls
Many financial planners will advise that certain asset classes should be held in certain account types, depending on the tax treatment of the asset class in question. For example, often we find planners advocating for fixed income securities to be held within non-taxable accounts like IRAs or Roth IRAs because the interest payments will be shielded from income tax while stocks, particularly non-dividend paying stocks, should be held in taxable brokerage accounts. In theory, this works well, but sometimes real world constraints can present problems with this methodology.
Animal Spirits are Back
Do you want to buy some garbage? There’s a growing number of investment products that some within the industry consider to be garbage, but they want to market them to investors like you anyways.
Leveraged exchange traded products that double or triple the daily return (or its inverse) of a “hot stock” or the latest meme coin can sound like ways to strike it rich, but buyer beware.
Before you get tempted to buy one of these products, please make sure you understand the risks associated with them, which we think deserve a warning label.
Quarterly Newsletter Q4.2024
To see our quarterly newsletter for Q4 2024, click here
Why Diversify? Part 2
In our last blog post we looked at how adding bonds to a portfolio of stocks can have an outsized impact on the volatility of the portfolio as compared to the reduction in return. What can be less intuitive is that sometimes adding a riskier asset can also have positive impacts on the risk-reward characteristics of a portfolio. Read on for an example.
Why Diversify? Part 1
Adding bonds to a portfolio can have multiple benefits
Stock Returns Are Almost Never Average
Don’t expect average stock market returns
Are Price and Value the Same?
Differentiating price and value is a key part of our investment strategy
Roth Conversion Considerations
In some circumstances, converting Traditional IRAs to Roth IRAs can help lower overall taxes paid.
What to Know About Target Date Funds
Target Date Funds are a popular option for investors, but not all funds are created equal.
The Importance of Total Fee Drag
Small differences in account fees may not seem like much, but they compound over time and lead to large differences in account value.
