Asset allocation is the most important decision a long-term investor makes, and it’s one of the few things in the world of investing that is fully within your control. A famous paper published 1986 determined that asset allocation explains 93.6% of variation in portfolio returns. It’s worth noting Read more…
The Power of Compounding
Time mixed with the power of compounding is the most potent combination for wealth creation. Read more…
Disability Insurance: The Missing Piece in Your Financial Plan
Five years ago when my wife and I were expecting our first child, I was quick to get term life insurance policies in place. It wasn’t until last month, however, that I protected my human capital from disability. Read more…
Put Your Personal Finances on Autopilot: How to Automate Your Income, Expenses, and Investments
Remember in high school when you had to read The Odyssey? Read more…
Fees Matter
When I look through the funds that investors use – be it an individual, institution, or 401(k) plan – I’m always amazed by the high fund expenses. Read more…
Thinking About Markets Like Piles of Sand
The idea of complex adaptive systems might sound overwhelming, but an experiment conducted by physicist Per Bak makes the concept easier to understand. Read more…
The Case Against Permanent Life Insurance
Nearly everyone needs life insurance, but it’s easy to end up with a bad policy. Read more…
Time Beats Timing
It’s tempting to think about the possibility of buying and selling at just the right moment. Here’s a dirty little secret that most of the investment industry doesn’t want you to know: Time is more important than timing in investment success. Read more…
Are Your Retirement Plan Fees "Prudent and Reasonable"?
In 2006, Jerry Schlichter, a St. Louis plaintiff lawyer, began suing 401(k) fiduciaries. His contention was that retirement plan fiduciaries were not properly overseeing their plans – particularly the duty to make sure fees were “prudent and reasonable.” Read more…
Raising Financially Savvy Daughters: Perspectives from Plancorp Dads
Instilling the value of money in our children is a difficult task for most anyone. There are so many questions to consider. What age do we start talking about money? How much of an allowance should we give our children? How should we encourage them to spend/save their money? Read more…
