The Stockdale Paradox
As people (and investors) we need to find a balance between two competing thoughts: the realism of today’s circumstances, and the hope of long-term success.
The Best Interest »
Blog
The 60/40 Portfolio: Where’s It From and Why Do We Use It?
Why do we keep discussing the 60/40 portfolio? Where did it come from? Why does it have so much staying power?
Is It Harder for Investments to “Break Even” After They Decline?
If a stock drops (-50%), it needs to grow +100% to breakeven. But…does this mean anything important to investors?
Bonds vs. Bond Funds
Are retiree’s who own bond funds setting themselves up for harm that a bond ladder could never inflict? Or is this six vs. half-dozen?
How to Not Torture Your Retirement Numbers
“The nature of human psychology is such that you’ll torture reality so that it fits your models.” Let’s not do that.
I Hate You, cliff
Some parts of the financial planning world are sheer cliffs. Take one step over that cliff and it’s a long way down.