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What is the Backbone of an Evidence-Based Portfolio?

An accumulation of studies since the 1950’s has identified three risk factors that form the backbone of an evidence-based portfolio. They are:  The Equity Premium – The additional return investors should expect to earn for taking the risk of investing in stocks rather than short-term bonds. (6.27% per year since July, 1926)*  The Small Cap […]

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Traditional versus Roth contributions: What to consider – PART 2

See Part 1 of this blog post here.[PR1]  What’s best for me? When determining which contribution is a better fit for you, understand that there is no single right answer for everyone.  The contribution that’s best for you will be determined by your personal situation.  Ask yourself the following 5 questions before making your decision: […]

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Traditional Versus Roth Contributions: What to Consider – PART 1

Key Takeaways The decision to make Traditional or Roth contributions to retirement plans adds an extra layer of complexity to investing. Traditional contributions allow participants to defer tax until funds are withdrawn, while Roth contributions allow participants to pay tax up front, so there’s no tax obligation upon withdrawal. When deciding what type of contribution […]

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For Better Investment Results, Rely on the Evidence

Understanding the source of investment returns is an important part of being a successful long-term investor. Unfortunately, far too many investors are under the impression that successful investing requires predicting markets. More than 60 years of academic research says otherwise. Still, investors are often distracted from the focus on their long term goals by the […]

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2015 Annual Limits for Financial Planning

Key Takeaways In 2015, retirement plan participants can contribute up to $18,000 annually to their 401(k), 403(b), Thrift Savings Plans and most 457 accounts. Savers age 50 and over are able to contribute an extra $6,000 catch-up contribution this year, for a total of up to $24,000. Contributions to Individual Retirement Accounts (IRAs) are unchanged […]

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Markets Work

The evidence is clear. Markets do a great job of setting prices. Markets aren’t perfect but they do such a good job that they make it nearly impossible for investors to outguess the markets and cover their costs. We, at Independence Advisors, know that this runs counter to what investors are told on a daily […]

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Want to Sleep Better at Night?

Turn off the news, embrace some volatility and stick to your plan Key Takeaways Savvy investors know  there will be periods of volatility along the way to healthy long-term returns in equities. Short-term volatility—sensationalized by the financial news media—is what typically disrupts many long-term investment plans. $10,000 invested in the S&P 500 when I started […]

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