When I want to sound smart and intimidate people, I calmly look at them, chew on a muffin for a few seconds, and then throw it against a wall and scream, “DO YOU DOLLAR-COST AVERAGE???” People are often so impressed that they slowly inch away, then whisper to people around them. I can only guess […]
Whether you’re just arriving here directly from Index Funds or you’ve read through the basics of investing and decided you want to take the easy way after all, no problem—target date funds are the easiest investment choice you’ll ever need to make. Target date funds are my favorite investment of all because they embody the […]
Asset allocation is the process of dividing your investment portfolio into different asset classes, or groups of investments. Each group offers unique characteristics that are defined by risks and returns. Here’s what typical investors’ asset allocations—remember, that’s the mix of different investments—might look like as they get older. These figures are taken from Vanguard’s target […]
Stocks and Bonds have Many Flavors You’ll see each of the different types of Stocks and Bonds; and how they differ from each other. STOCKS BONDS Large-Cap – Big companies with a market capitalization (“market cap,” which is defined as outstanding shares times the stock price) over $10 billion Government – An ultra-safe investment that’s […]
Life isn’t just about target date funds and index funds. Lots of people understand that, logically, they should create a well-diversified portfolio of low-cost funds. But they also want to have fun investing. If you feel this way, sure, use a small part of your portfolio for “high risk” investing—but treat it as fun money, […]
Let’s be honest. Nobody really loves managing their money. I’d rather be using my money, like by taking a food tour in Tokyo or a weekend ski trip with friends. Basically, I’m always on the lookout for ways to spend less time and get better results. I’ve taken pains to research investments that don’t take […]
In 1975, John Bogle, the founder of Vanguard, introduced the world’s first index fund. These simple funds buy stocks and match the market (more precisely, to match an “index” of the market, such as the S&P 500), versus the traditional mutual fund, which employs an expensive staff of “experts” who try to predict which stocks […]
Investing is a personal thing that can be really rewarding if you do it right. But what does “doing it right” mean? Is there really a “right” way? And how do you even get started if you’re considering investing in a new asset class or method of investing? In this article, we’ll tackle the basics […]
There are a lot of great money columnists out there. In this article, I’ll be sharing three columnists who I think do a great job relating their discipline to aspects of investing and personal finance. They each offer different perspectives and have strengths in different areas. I would consider them must reads if you are […]
We’ve all heard stories about investors who consistently beat the market. There are books about them, conferences dedicated to them, and YouTube videos made about them. It’s no secret that there are investors out there who have beaten the market consistently for years. But what we don’t know is how they do it: What stocks […]