Tag

goals

Turns Out, Most Stocks Fail to Outperform Treasury Bills.

By | The Friday Brief | 2 Comments

You may have heard of the 4% rule as it pertains to retirement. It goes like this: If you begin retirement withdrawing 4% of your savings and adjust each following year’s withdrawals for inflation, your money should last 30 years. It may be the most widely accepted and most often cited rule of personal finance. Fewer of us, though, are familiar with the other 4% rule. I admit, it’s not something I was aware of until recently, but the implications of it have further solidified my beliefs about the most appropriate way to invest. In January of 2017, Hendrik Bessembinder,

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Confessions of a Former Active Manager

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Just yesterday, following a conversation with a client, I experienced an all too familiar tug, not unlike the one an alcoholic might feel at a cocktail party, when the smell of alcohol is rich in the air and that drink is but an order away. During our conversation I learned that Amazon AMZN was now up 21% for the year so far. The broad stock market is up 5.7% by comparison

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Are We Talking the Same Language?

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The financial services industry, like the medical industry, the marketing industry, and the automotive industry, all have their their unique shorthand terms and abbreviations that are clear to insiders, but confuse and obscure understanding for outsiders. It’s called ‘the curse of knowledge.’ Jane Kennedy defines the curse of knowledge as “a cognitive bias that occurs when an individual, communicating with other individuals, unknowingly assumes that the others have the background to understand.”

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What if Financial Planning Was More Inspirational and Fun?

By | Briefs about our Process, The Friday Brief | No Comments

For most folks, the idea of financial planning sounds like as much fun as doing lab work, going to the dentist, or creating a budget. And in truth, the way it is widely practiced only amplifies the perception that it is a painful exercise in all things uninspiring. As sensual creatures, we enjoy things that appeal to our senses and instinctively avoid the things that affront them.

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A Stunning Rebuke of the Status Quo

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Donald Trump’s victory proved a shock to pollsters, gamblers, and stock & bond traders. Stock futures swooned 4.5% last night, but have since mitigated most of their losses. As of this writing the S&P 500 is down only 0.5%. On the bond side, fears that Mr. Trump’s spending will be inflationary whipsawed yields during election night. Bond traders took the 30-year Treasury yield from 2.62% at 7:00 pm EST, when early results started coming in, to a low of 2.5% at 10:30 pm EST before they shot up to a high at 5:30 am of 2.78%. The 7-10 Year US Treasury Index

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How to talk about your life’s goals

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Today’s Brief is inspired by Seth Godin’s blog entitled How to talk about your project. We’ve taken the liberty of broadening Seth’s focus from project to “life goals.” Like Seth encourages his readers to look beyond marketing, we encourage you to think big picture, of purpose, life goals, and how you communicate them ‘strategically, to yourself, your partners, your coaches and your investors (yes you have investors).’

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Keep Pounding

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For those of you who are not inclined to pay close attention to sports headlines, the Super Bowl is this Sunday. It is the 50th Super Bowl to be played, and will find the Carolina Panthers facing the Denver Broncos in Santa Clara, California. Even if you care nothing for the game of football, it promises to be an event worth watching.

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Measuring Risk Tolerance Is Not Financial Planning

By | The Friday Brief | No Comments

Market cycles, bull and bear, have considerably more impact on our psyche, confidence, and outlook than we perhaps realize. When stocks have risen for a period long enough for us to believe the trend will last, things simply look brighter. We feel more confident about our future, loosen our grip on our money, and feel more comfortable taking risk. With the the Total US Stock market up some 200% since March of 2009, we have had numerous discussions around increasing stock exposure to capture larger returns – it’s only normal.

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