IRA’s (Individual Retirement Accounts) are one of the most common ways to save for retirement. Conceptually, they are familiar to many, but the details related to and surrounding these types of accounts can be confusing. Many investors are also familiar with Roth accounts, which are a type of an IRA. This time of year, January thru April 15, is a critical time to understand IRA parameters since during that time you can address both tax years--2017 and 2018. In this article by Jim Glass of The ... [Continue Reading]
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Starting on Friday, February 2, and continuing on the following Monday, global equity markets sustained their largest correction in more than two years. While small in historical context, this correction was a rude awakening for many investors who had grown comfortable with the unusual stability in the stock market throughout 2017. Some investors did more than just grow comfortable, they started betting on this stability to continue, in the form of shorting volatility. These bets, which ... [Continue Reading]
The Dow Jones Industrial Average had its largest decline in history on Monday, February 5--dropping 1,175 points! The headlines practically wrote themselves and were too exciting not to print. This was the largest single day decline in history, as long as we’re measuring in points and not percentages. By that measurement, Monday's drop wasn’t even the biggest decline in this decade. In addition, the 4.6% slide wasn’t significant enough to register within the top 20 daily declines and, of course, ... [Continue Reading]
Facebook, Amazon, Apple, Netflix and Google collectively form the acronym FAANG. You may have heard about this group of stocks in the media recently as they’ve outperformed the market significantly this year. Should you therefore be changing your portfolio allocation to gain more exposure to these companies? That’s the question addressed by Jim Parker, a Vice President at Dimensional, in today’s recommended reading article "Catchphrase Investing." ... [Continue Reading]
From 1926 to 2016, the average annual return for the S&P 500 index was 10.2%. A statistic like this shapes the way we set expectations for future returns for our own portfolios, but without having the right perspective we might be setting ourselves up for disappointment. For example, over that 91 year period how often do you think the S&P 500 produced returns within the range of 8% to 12%? You might be surprised to learn that this was only achieved six times over this period. In the ... [Continue Reading]