The Power of Compounding

The Power of Compounding Working Against You If you lived through the 1970s, you probably know the visceral fear that accompanies the word “inflation.” During that “Great Inflation” period, the rate of price increases surged to double-digit levels—reaching 14% by 1980. Businesses were destroyed; household budgets were shredded. Only by raising interest rates to a

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Written Plans Help Clear Up Fuzzy Thinking

Written plans help clear up fuzzy thinking when investors take a punch The boxer Mike Tyson famously said that every fighter has a plan until he gets punched in the face and that’s why written plans help clear up fuzzy thinking when investors take a punch from the markets. Tyson was referring to his opponents

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Measuring What Matters Most

Have you been measuring what matters most to your future financial success, or have you been focusing on the market’s day-to-day gyrations over the past several months? If you’ve been focusing on the market, you’re not alone. Like the crowd at a tennis match, investors have been looking back and forth, one moment at a

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Investment Behavioral Mistakes

Much has been written about investment behavioral mistakes and whether financial advisors can help clients generate market-beating investment outperformance. Amid all of the activity that investors and their advisors pursue in hopeful expectations of outperforming the market, it’s easy to overlook the risk that those activities might create below-market returns. Underperformance can easily come from

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Lessons From the Market Correction

Learning Lessons from the Market Correction Helps Us Become More Disciplined Investors The stock market’s plunge at the outset of the Covid-19 pandemic, when the S&P 500 index plunged 32% in five weeks, shook up a lot of investors and reminded all of us to refresh our memories of previous “lessons from the market correction.”

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The Shocking Truth About Index Investing

You May Not Believe It Until You Read It, But It’s True. The shocking truth about index investing is that reality can be very different from theory. Index investing funds are wildly popular with Americans: As of year-end 2021, “passive” equity and fixed income index funds managed total net assets of $5.7 trillion, according to

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Dividend Growth Stocks: Boosting Income for Retirement

Portfolios of high quality dividend growth stocks have fulfilled the need for a steady, sustainable and rising stream of income capable of keeping pace with inflation for decades. This is especially appealing of course for those who are building a portfolio of investments to sustain them for decades in retirement. The income from dividend growth

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It’s Silly Season for Market Predictions

Warren Buffett once said, “The only value of stock forecasters is to make fortune tellers look good.” At this time of year – when media outlets are brimming with forecasts and market predictions for the 12 months ahead – it’s wise to heed Buffett’s advice. Just look at Wall Street’s dismal record in divining the

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Putting China in Perspective

If you follow the financial news, you know that China’s stock market is in the midst of a sharp slide. The benchmark Shanghai Stock Exchange Composite Index has fallen more than 23% in the nine weeks since June 12th of this year, closing down more than 30% some five weeks ago on July 8th. What’s

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Greece, and Why Headlines Are Your Enemy

The “Greek drama” is over – or at least at an intermission. But for investors, the dire headlines generated by the country’s financial crisis provided a stiff test of self-discipline. First, a recap: Earlier this week, Greece and its Eurozone creditors tentatively agreed on a last-minute bailout package that could stave off economic collapse in

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