Wall Street and financial services companies are infamous for slick marketing phrases, and continuously rolling out products with psychologically appealing names. In this brief, 3-minute video, we look at one of the most recent products that has been strongly marketed over the past few years using the name, “Smart Beta.” Unfortunately, most of these products are quite expensive, and are usually nothing more than attempting to mimic what Dimensional Fund Advisors has been doing for years, which is essentially tilting a portfolio toward asset classes with higher expected returns, such as value and smaller company stocks. I hope you enjoy this informative video, and if so, feel free to share it with family and friends.
Some recent research has shown that investors left to their own accord, may cost themselves as much as 3% annually in investment returns. This is what Tim Richards of The Psy-Fi Blog refers to as “The Human Factor” in this month’s brief video blog. This supports something I have personally said on numerous occasions: “Investment behavior is overwhelmingly the biggest determinant of investor success.” And, this further demonstrates why having a sound financial plan serving as the blueprint for an ongoing, non-emotional investment process is so vitally important. I’m confident you will find this video very informative, and as always, feel free to share it with any friends or family.
Benjamin Graham, Warren Buffett’s teacher, emphasized over and over again that an investor’s biggest enemy can be seen by simply looking in the mirror. In other words - ourselves. Because of this, the predominant role we play as a financial advisor (coach) is to serve as a buffer between our clients’ dangerous emotions of fear and greed and their temptation to give in to such emotions. Evidence clearly shows that most do-it-yourself investors, attempting to go it alone, end up with poor financial results over time. But there are certain concrete steps all investors can take to help protect us from ourselves. This brief, 3-minute video outlines what some of these all-important, yet practical steps are. As always, feel free to share this video with any friends or loved ones.
For years now, we here at ISI have highly recommended that for the purpose of planning withdrawals of retirement funds, generally speaking, it should be limited to approximately 3% annually of one’s portfolio. Additionally, I have never been a proponent of automatically adjusting one’s portfolio based upon age. Instead, I have always urged clients to have one’s specific goals and financial plan be the driver of how investments should be allocated. This brief, 3-minute video discusses both of these very important issues, and I’m confident you’ll find it of interest.
In the following brief, three-minute video, you will learn why sound diversification is so very important, and why it truly is your best friend as an investor, allowing you to “sleep well at night.”
As you're nearing retirement, and ultimately transition into retirement, there are many vital and complex variables that will have a tremendous impact on your future financial security. It can become an overwhelming maze that's continually changing in the areas of sound investing, tax laws and opportunities, estate planning, Social Security, Medicare, and many other aspects of dynamic financial planning. This is where a qualified, experienced financial planner and team can be invaluable to you and your family when facing all of these very important decisions. This brief, 3-minute video highlights just how important this can be.
Confirmation bias is the tendency to give more weight to evidence that confirms our beliefs, regardless of whether the information is true or not, than to evidence that contradicts our beliefs. This behavioral bias, coupled with our inherent propensity toward over confidence and optimism, can lead to poor investment decisions, high costs, missed opportunities and substantial volatility in an actively managed portfolio. Pay special attention to this brief video as it’s most definitely filled with time-tested wisdom.
In the world of investing, financial science and academic evidence have shown that building a portfolio that includes a tilt toward certain “factors,” such as smaller company stocks and value stocks, not only has increased long-term returns historically, but also can increase future expected returns.
In this brief, informative 3-minute video, you’ll learn more about why this can be so important.
- Availability bias — a mental shortcut that can wreck your investments
- What proportion of actively managed funds consistently beat the market?
- Why you Need a Financial Plan
- Persistent Outperformance is Extremely Rare
- Investors need to learn to sit on their hands
- How to Find the Right Financial Advisor