Every household has a life event annually that will impact their investment objectives and risk score. Improve your first impression by utilizing a robust risk-tolerance questionnaire.
REITs are vulnerable to an increase in interest rates or an economic contraction. If you have been thinking of increasing your allocation to REITs to generate more cash flow, this new research – and current valuations – should serve as a cautionary warning.
I often hear criticisms about the use of bond ladders. Whenever the criticism comes from professional advisors, however, I’ve noticed it generally involves firms that use only bond mutual funds or ETFs instead of individual, tailored bond portfolios, whether in the form of a bond ladder or not. Unfortunately, much – if not all – of this criticism is based on falsehoods and the conflicts that can arise when advisors employ only mutual funds and ETFs.
What explains the fact that municipal bond yields are only slightly lower than equivalent Treasury bonds, giving muni investors a much higher taxable-equivalent yield? The answer lies in their liquidity, which is good news, especially for buy-and-hold investors of individual bonds.
Leveraged funds may seem like a good idea – if we expect the S&P 500 to be positive, for instance, then getting four times its return seems even better – but long-term investors (and there shouldn’t be any other kind) should be skeptical.
Each year Americans spend huge sums preparing to transition their assets to their heirs, engaging high-powered estate and tax planners who set up complex vehicles like family limited partnerships, life insurance, charitable remainder, charitable lead and various other kinds of trusts. Yet, despite the best efforts of top-notch professionals, the majority of plans fail. Why?
A family wealth mission statement (FWMS) is a relatively brief statement that encapsulates your family’s purpose, goals and standards.
Socially responsible investing (SRI) has captured nearly a quarter of U.S.-based assets. New evidence from one of the world’s largest sovereign wealth funds shows that those investors are sacrificing significant performance. Indeed, they are giving up more than 1% a year – effectively doubling the typical 1% AUM advisory fee.
My firm recently approved a new alternative investment, one that until recently was only available through hedge funds, the Stone Ridge Reinsurance Risk Premium Interval Fund (SRRIX).
Fama and French’s 1992 seminal research, which identified the value and size factors, was met with skepticism. Even the authors questioned the underlying economic rationale for their findings. With a quarter century of data, let’s look back and see if the skepticism was justified. Have value and small-cap outperformed?