Getting Started

Mutual Fund Investing–The Video!

The link with this post will take you to a YouTube video that dramatizes the perils of investing in a handful of actively managed mutual funds. For those who prefer words to film, here’s the same story in prose. When you invest in stocks or bonds, you can do so either through passive index funds that simply own (or replicate) all or part of the total stock or bond market, or through “active” managers that attempt to outperform the market return and charge relatively high fees. If you hire the latter, you are incurring “active risk”: the risk that your […]

Hiring a Financial Planner

Among the most important decisions we make as savers and investors is whether to manage our own financial affairs or hire someone to do it for us. The notion that we can all be successful investors is a delusion foisted on us by financial service firms eager to make money from our ignorance.  So unless you have considerable financial and investment knowledge and expertise, you should outsource to someone who does. But it’s critically important to select a financial planner or investment adviser whose financial interests are truly aligned with yours; that is, he or she has no incentive to […]

“Simple, Smart Investing”: The Book

Here’s a synopsis of my new book for individual investors, Simple, Smart Investing: A How-To Investment Guide for Everyone, which is available everywhere books are sold.  (If you like it, a nice review on Amazon and Barnes & Noble would be much appreciated!). Most savers simply don’t know enough about investing to protect themselves from financial advisers who earn their living selling products and services that cost a lot and generate inferior returns.  A double whammy. In fact, investors are spoon fed a steady diet of falsehoods and delusions by financial service firms intent on making money from them rather than for […]