Under Water in the Caribbean

By all accounts, Puerto Rico is a beautiful, sunny place to visit, especially in the Winter. But it’s hard to fathom how this U.S. island territory of 3.5 million people could have racked up $70 billion in public debt—roughly $20,000 per citizen, which happens to be almost exactly the population’s average yearly income. Now that […]

How Should We Think About the Future?

Chances are, you’re underestimating the amount of progress we’re going to make in technology, medicine and a host of other things. Why? Because your brain, and mine, and everyone else’s, thinks linearly, rather than exponentially. We are living in an age of exponential change in things like computing power and speed, decoding and finding […]

Your Guide to Millionaire Status

Chances are, you know that it takes steady savings to accumulate wealth. A recent article in Business Insider actually calculated how much you’d have to invest each day in order to become a millionaire.

Suppose your investments earn an average 7% yearly return, and you want to have $1 million by the age of 65. […]

Avoiding the Pain

There’s no question that we experience emotional pain and anxiety when our portfolios are losing money due to market downturns. Behavioral scientists tell us that we feel losses twice as keenly as positive returns.

But that doesn’t tell us what we really want to know, which is: other than selling at the wrong time and […]

Where the Action Is

When you look at the geographic map of the world, you’re actually looking at several major distortions. First, unless you’re looking at a globe, the map will show Antarctica, Greenland, Iceland, Canada and Australia as much larger than they actually are, while equatorial areas like the middle of South America and pretty much all of […]

The Value of Objective Planning

 

What is the value that people get when they work with an objective, client-focused financial planner?

Most planning firms are reluctant to toot their own horns—partly out of modesty, and partly out of a conviction that you probably have better things to do than read about how they help you with your financial […]

Forrest’s Great Investment

If you watched the popular Forrest Gump movie, you may have noticed that moment when the perplexed young man opened his brokerage statement and noticed that a big chunk of his shrimp operation profits had been invested in (as he said) some kind of fruit company. He had opened a brokerage statement and comically […]

Good News or Bad News?

 

July joined January as the only two down months for the U.S. investment markets, and the month’s last week (down 3%) provided yet another exciting lurch of the roller coaster. But if you put it all in perspective, July’s overall 1.5% decline is relatively small and has since been mitigated somewhat by rising stock […]