Elder Investing: Helping Grandma Make Decisions

What types of investments should Grandma and Grandpa have and how much should they keep in each? The appropriate allocation may surprise you as we discuss the overlooked topic of elder investing. Let’s start by painting a picture of the demographic group that I’m referring to. First, if you’re old enough to be interested in [...]

The Problem with Foreign Bond Funds

Foreign bonds in a portfolio make sense for two reasons. First, they give you more diversification. Second, bonds denominated in foreign currencies provide diversification away from the U.S. dollar. Although the nominal return from investment-grade foreign bonds is expected to be about the same as U.S. investment-grade bonds, owning a fixed amount of both and [...]

Save and Grow Rich

What’s the fastest way for younger people to grow their wealth? The answer is to make saving a habit. A solid savings plan that puts away 10 percent of income or more is the most reliable method for growing wealth at an early age. Learning to invest well is also important, but it’s not nearly [...]

Life-Cycle Investing

Age plays an important role in asset allocation decisions, but that’s not because we get older. It’s because our circumstances and resources change over time. We all have a physical life-span, and we also have an earnings life-span. During our working years, we convert human capital onto earnings. These earnings are used to live day-to-day [...]

How to Choose Egg Baskets

“Don’t put all your eggs in one basket” is an investment adage that dates back to the beginning of civilization. It means dividing your assets among different investment types to help protect your principal from a large loss when one basket fails. Diversification among asset classes is a hedge. A well-constructed portfolio reduces risk and [...]