Conventional wisdom tells us that as we age, our investment portfolio should become more conservative. Once we reach retirement we want to start reducing the volatility in our portfolio, so we add more stable bonds into the portfolio and we start to remove a portion of stocks. As we age further, we may want an even more stable portfolio of investments, so we add even more bonds into the mix. However, 'conventional wisdom' doesn’t apply to every situation and every family. When we meet with ... [Continue Reading]
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On the journey to a successful retirement we know that small habits can add up over time. Every dollar saved and invested has a chance to grow, and the earlier we save the more growth potential that dollar has. Since we know this is true, savvy savers look for ways to invest a few more dollars and get that process started sooner, rather than later. This can lead to activities such as clipping coupons, keeping the thermostat set to a more reasonable temperature, or bringing a sack lunch to work ... [Continue Reading]
Carlson Capital Management operates under the fiduciary standard, which means we provide advice that is in the best interest of our clients. And, as an independent Registered Investment Advisor (RIA), we are not beholden to any third party and have no hidden incentives to recommend one product or solution over another. We often describe this concept using the metaphor that we are in a supermarket--with access to the entire store, and can pick and choose the solutions (products) that best fit ... [Continue Reading]
Our emotions affect our investment decision making in countless ways, which can have a very real impact on our long-term financial goals. One of the most powerful ways our emotions affect us is through our appetite for risk. When markets are calm and returns have been positive, our brain tells us that it’s okay to take on more risk in hopes of achieving higher rates of returns. The opposite is true as well. When markets become volatile and returns have been negative, our brain tells us to take ... [Continue Reading]
Traditionally, when we discuss the concept of a highly concentrated portfolio, we talk about risk. As we know, putting all of your eggs in one basket means a single mistake can be very devastating. What is often less emphasized is how a concentrated portfolio will most likely underperform a diversified portfolio over time, and how this can negatively impact an investor's financial goals.How can we say that a concentrated portfolio will most likely underperform? After all, we don’t have a ... [Continue Reading]