• filtering through
    your money management questions
  • partnership
    that expands your resources
  • collaborative approach
    to help you create the life you want
Filter Insights
Receive Insights in your inbox.

Rock, Paper, Scissors? How do most investors decide what mutual funds to buy? Many buy what their brokers or bankers sell them. Others prefer to do it on their own, and rely upon “expert” ratings services in their decision-making. The chart below shows how five different and eminently reputable mutual fund ratings services rate four actual mutual funds (names withheld to protect the foolish). *DFA, Inc. Clearly, there seems to be some meaningful disagreement among these financial powerho...
Read More
The Science of Freaking Out There is a scientifically measurable human tendency to want to avoid losses more than acquire gains. Behavioral scientists call this Myopic Loss Aversion.* (We call it the average investor.) In fact, it has been shown that the average person is so highly risk adverse that they need odds of 2 to 1 to even accept a 50-50 bet. Said another way, an investor’s pain in experiencing losses is twice as strong as the joy they get for the same amount of gain. That’s the Pros...
Read More
Does God Want You To Be Rich? This unsettling question was found on the cover of TIME magazine’s 9/18/06 edition. As you may have guessed, the article interviewed both sides of the issue. Not surprisingly, many people interviewed who believed God wanted them to be rich, in fact, were rich; and those who believed otherwise, appeared to be at a lower economic level. We are not trying to take sides on this issue, but think it is a good example of how one’s belief structure about money can abs...
Read More
Fee-only vs. Fee-based: The Dirty Little Secret All of us at Wealth Advisor Group make a big deal about being a fee-only Registered Investment Advisor. We shout it from the rooftops whenever given a chance. If you look at the three-ringed logo in the upper right corner of this letterhead, note that one represents the importance of objectivity in the investment process. We, and virtually all other independent, unbiased experts, believe that fee-only investment management is the supreme way to sh...
Read More
One Bad Apple Can Indeed Spoil the Whole BunchFormer superstar Michael Jackson has made some blunders in his career. Included on this list would be dangling his child out of an upper-story window, and having sleepovers with inappropriately aged bedmates. But for our purposes, his biggest mistake occurred much earlier in his life, when he, Tito, Jermaine and the other two brothers sang the lyrics “One bad apple don’t spoil the whole bunch, girl!” Poor grammar aside, that statement was patent...
Read More
Conventional Market WisdumbThe wisdom floating around the investment world is vast. If you doubt that statement, just ask almost any highly paid Wall Street guru and they will confirm just how wise they are. All this pent-up brilliance usually filters down to the average investor as a type of conventional wisdom. Remember, a wise man once said that conventional wisdom is information you overhear at a convention. That unfortunately means that your mentor might be wearing a hat with a tassel or a ...
Read More
A Coin TossMany investors, both amateur and professional, believe that they can beat common stock market benchmarks, such as the Dow Jones Industrial Average, the S&P 500 Index, etc. All of our country’s top universities offer business degrees in finance, and the top brokers, bankers and mutual fund companies pay their managers top dollar to determine what to buy and sell and when to do it. So naturally, being able to outperform an industry benchmark shouldn’t be too difficult—wouldn’t y...
Read More
Indexing Is Not EnoughSometimes when a sophisticated investor first learns about Wealth Advisor Group’s adherence to Modern Portfolio Theory and asset class investing, they will immediately exclaim, “You must be ‘Indexers’”. Translated, that means they think WAG uses all index mutual funds to build our clients’ portfolios. They are wrong. In fact, we are currently using only three index-based fund vehicles to represent three of the 15 specific asset classes our clients can hold in their po...
Read More
Page 7 of 7 First 3456[7] NextLast