Here is what we know about active management:
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Our goal is to regularly communicate timely, concise ideas on how to help you better serve your clients and grow your business.
As much as we all like to think of ourselves as rational, occasionally we worry about things we probably shouldn’t. Here’s an example: what worries you more, getting bitten by a shark or a mosquito? If you said the shark you might want to think again.
Check out the infographic on the World’s Deadliest Animals which shows that although 10 people a year die from shark attacks, 725,000 die from mosquito bites. Sometimes when we focus on the wrong thing, it causes us to make poor decisions, including with our investments.
On a recent routine run I got the surprise of my life when I was bitten by a rattlesnake. My experience that followed made me reflect on some similarities to investing.
Do you know what you’d do if you were bitten by a rattlesnake? Your first instincts might be to apply a tourniquet to the bite area or attempt to suck out the venom from the bite area. But either of these could actually make things worse.
We often hear questions about rising interest rates and how those may impact investments. Will inflation pick up? How quickly will the Fed taper? Is the economic recovery robust? These are all questions which certainly impact the markets’ expectation of future interest rates. Continue reading
Floor-Leverage Rule Spending Simulation1
Total assets in individual retirement accounts and defined contribution plans have grown more than 400% over the last 18 years from $3 trillion in 1995 to $12.4 trillion in 2013 according to Investment Company Institute (2014)2. More importantly, these assets as a percentage of the total retirement market have grown to 54%, which indicates that the responsibility of managing investments is shifting towards individual investors. The need to assist these individuals with managing their retirement assets is growing. Continue reading