Why The Failure of the Fiduciary Rule Could Still Benefit Consumers and Fiduciary Advisors

Over the past two months, this blog has attacked guaranteed income annuities and the purported advantages of leasing a vehicle, assuredly triggering ill sentiment from annuity salespeople and auto dealerships.  Given the recent string of controversial opinions and analysis, what better time to address the Department of Labor’s “fiduciary rule”?  The fiduciary rule has been a [...]

Stocks at an All-Time High

“Congratulations.  I always thought that record would stand until it was broken.”  -Yogi Berra in a telegram to Johnny Bench after Bench broke Berra's record for most home runs as a catcher.   We recently explained why the Dow Jones Industrial Average is a terrible, no good, very bad index.  In spite of our best [...]

Guaranteed Income and No Risk of Principal – Too Good to be True?

It is difficult to go more than a week without seeing or hearing advertisements for an investment that guarantees zero risk of principal loss, promises an attractive return (5-10% per year), and ensurers lifetime income that never expires.  Admittedly, these promises can sound very attractive on the surface, especially for risk averse investors.  But are they too [...]

Q4 2016 Investment Commentary: Planning vs. Prognosticating

Last Friday here in Atlanta, local businesses closed, restaurants shut their doors by late afternoon, school activities were cancelled, and the Atlanta metro region went under a State of Emergency in anticipation of a debilitating storm.  Meteorologists unanimously predicted 2-5 inches of snowfall later that evening – an obviously dire amount of snowfall by southern [...]

The Dow is a Bad Accident of History

I was a recent college graduate and there I was on the trading desk of a large institutional investment manager, entrusted with a role well beyond the pay grade of a newly minted liberal arts history major.  Like many people in their first job out of college, my primary objective was not to make a [...]

Luck and Skill in Baseball and Investing

The following is our quarterly investment letter that was recently sent to clients. 75 years ago this month, a thrilling World Series concluded what many baseball historians decidedly describe as the best baseball season ever.  That season is notably remembered for two historic accomplishments: Joe DiMaggio’s 56-game hitting streak and Ted Williams finishing the season with [...]

Asset Location: The High Cost Mistakes People Make

Earlier this month, we published an article explaining why investors would be well served to organize their portfolios like their kitchens.  This process, one that the finance industry calls ‘asset location’, is simply intended to make the most of the existing tax code.  The IRS sets the rules with different tax treatment for different account types [...]

Asset Location: Organize Your Portfolio Like Your Kitchen

My family’s kitchen will not be profiled on HGTV as a model of organization.  We face the practical limitations of 25-year old builder-grade cabinets and constrained space.  We also face the reality confronted by many parents of young children.  That is, the focus of children emptying a clean dishwasher is on getting it done quickly [...]

Investing in Election Cylces

"It is a habit of mankind to entrust to careless hope what they long for, and to use sovereign reason to thrust aside what they do not fancy.” — Thucydides Immediately following the British vote to exit from the European Union (“Brexit”), we sent an email to you and other clients explaining the implications.  A [...]

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Simple and Effective Investing

“It might be the simplest play in all of sports, and the most effective.  Give the ball to Michael Jordan, and everyone else get out of the way.” These two sentences began an Associated Press article on May 28, 1989.  The day prior, the Chicago Bulls had the ball in the closing seconds of a [...]