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A Nerve-Rattling Snake Tale

I’ve written before about how gut instincts and rapid reflexes – behavioral factors – can do you in as an otherwise sensible investor. The other day, I was reminded that, in other walks of life, those instincts aren’t such a bad idea. Like if you encounter a real, live rattlesnake. I had been fishing with […]

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Research Confirms Actively Managed Funds Struggle to Outperform

High costs and portfolio turnover remain key drags on performance over time. Key Takeaways Most actively managed funds do not outperform their benchmarks over time. These mediocre results are heavily influenced by high costs and high turnover. A strong track record one year has little bearing on whether good results persist into the future. When […]

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Don’t Let a Wolpertinger into Your Portfolio!

Key Takeaways Like the elusive Wolpertinger of Bavarian folklore, active managers who are successful over the long term tend to be mythical creatures. Academics have been evaluating sightings of successful active managers for decades. There is little evidence that such managers exist in large numbers. Just as few people survive encounters with Wolpertingers, many investors […]

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The German Connection

Key Takeaways A small, but growing cadre of advisors in Germany is moving away from the commission-based compensation model in order to serve their clients better. It’s rewarding to help talented advisors in other countries adopt our philosophy of putting the client’s best interest first and foremost, and accept the role of a fiduciary. Thanks […]

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Preventing Financial Elder Abuse – Part I

Advisors and family members can team up on a loved one’s behalf. Key Takeaways The vast majority of financial elder abuse is perpetrated by family members and caregivers—not by strangers and professional crooks. Only a tiny fraction of elder abuse is actually reported. Look for the warning signs of financial elder abuse. As many of […]

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Over 70 and Charitably Inclined? Don’t Miss This No-Brainer Tax Break!

Key Takeaways A qualifying charitable distribution (QCD) allows you to donate up to $100,000 per year directly to a qualified charity from your IRA and exclude it from income. QCDs can enable you to give to charity and shield some or all of your Required Minimum Distribution (RMD) from taxes. QCDs require your contribution to go directly from […]

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There Is a Secret That Wall Street Doesn’t Want You to Know…

Wall Street’s Secret? “Where there is mystery there is margin”. The more the financiers of Wall Street can make investing sound complex and mysterious, the more they can promote their mysterious high-margin solutions. The greater their margins, the greater their profits. Now don’t get me wrong. I have no problem with anyone earning profits. Profits […]

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