Over the past few weeks, we have reviewed several components of our financial planning process and how these can create value for you. Today, we want to discuss rebalancing your portfolio as a critical technique for keeping your investments in sync. The basic purpose of rebalancing is to maintain the overall target asset allocation level […]
A few months ago we put together a simple two-sided page that outlines our four primary components of value. Taken together, these four factors comprise the functional and strategic ways that we create value for our clients. Financial planning involves much more than just investment returns. We strongly believe that the more clients, prospective clients […]
One of the characteristics we sometimes notice in new clients is inordinate worry or fear. As clients begin to accept advice and trust us, however, much of this worry disappears. Worry is ultimately a control issue…you want to control things that you can’t really control. In this context, the opposite of worry is trust. When […]
For the main, Nobel Prize winners elicit little response. One of the winners this week in economics is a noteworthy exception. Professor Eugene Fama of the University of Chicago, father of the Efficient Market Hypothesis, was one of three U.S. economists to share in the award this year. Markets are informational exchanges and Dr. Fama […]
The best time to prepare for the inevitable market pullback is when all is going well. Just like the mandatory lifeboat drills at the beginning of a cruise, perhaps this would be a good time to review market history in context. In the post World War II era, the average intra-year decline in the S&P […]
“We believe in experts in the same way that our ancestors believed in oracles.” – Philip Tetlock (Author) I read an article recently on one of the popular personal finance sites that essentially asked “Where to invest now?” This is a very common theme. Everyone is looking for “expert” advice about what to invest in […]
Many people say they want to accomplish long-term financial goals but when it comes to actually making tradeoffs and taking action steps they falter. There is a disconnect between what they say they believe and what they do. The sheer magnitude of largely short-term oriented financial news (and I use this term loosely) is sometimes […]
Investors often let their emotions control their financial planning decisions.This usually translates into running from the market in these inevitable periods of temporary decline.
Financial planning and preparing for your future can appear complicated. In reality, however, if we keep our focus on 3 numbers, the task is understandable.