Watch Out for “The Golden Ticket Trap”

by Jim Parker, Outside the Flags Vice President, Dimensional Fund Advisors In a popular children’s story, the young hero pins all his hopes on finding one of a handful of “golden tickets” hidden among millions of candy bars. It seems many people approach investing the same way. The notion that the path to long-term wealth lies in locating secret and previously undiscovered treasures in the global marketplace of securities is one regularly featured in media and market commentary. One magazine, for instance, runs a feature called “Fund Managers’ Secret Stocks,” referring to supposedly “bargain” stocks the pros keep hidden. (How the stocks can be secret […] Read more »

4 Surprising Insights about High Net Worth Retirees

wealthy retires can struggle in retirement

Wealthy Retires Can Struggle in Retirement Did you know that only 13 percent of workers are very confident of having enough money to live on when they stop working[1]? That percentage is low even for people who have a high net worth. So let’s reveal some truths about retirees and workers who will soon face retirement. Insight #1: Wealthy People Often Struggle In Retirement I’ve seen it many times. Some wealthy people fail to understand the serious financial challenges that even their high net worth can’t protect them from when they retire.  They don’t see the many factors that can destroy financial comfort for anyone: […] Read more »

Surprise! No Selloff in 2013

DImensional Fund Advisors

DFA VP Wes Wellington, whose prose I’ve provided from time to time in my Commentaries, has written an excellent piece reviewing the past year and, as he usually does, focuses on the absurdities provided to us by the media and the financial pundits, their predictions and how those predictions actually worked out. January 7, 2014 Weston Wellington Down to the Wire The unusually strong performance of US stocks in 2013 was a welcome surprise for investors who are following a simple buy-and-hold strategy and a source of exasperation for many professionals caught flatfooted by the steady rise in share prices. It was the best year […] Read more »

Doom and Gloom This Was The Year That Was

With Apologies To The Late David Frost by Fred Taylor I’ve written many times, over the years, regarding the worthlessness of the media — much less the pundits that they quote — regarding prognosticating the future. This applies whether their prognostications are positive or negative — the damage done to investors’ psyches (much less their investment accounts) tends to create either an ongoing case of angst or euphoria. Given the instincts and emotions that have allowed us to survive the millennia as a species, depending upon which phase of the moon is upon us or which phase of the investment cycle, investors seem to vacillate […] Read more »

7 Deadly Investor Traps

7 Deadly Investor traps

Click to view this slideshow “7 Deadly Investor Traps” on Slide Share Was this helpful? Can I help you think through any other issues about your retirement? Please feel free to call me, Gene Offredi, CFP, RFC at 203.453.1017 or visit our website at Summit Investor Coach, LLC.   Tweet Read more »

Surviving Retirement’s High Health Care Costs

Surviving Retirement’s High Health Care Costs

A couple who retired in 2013 is expected to need $220,000 to cover their health care cost in retirement. By some estimates health care will cost you more than food when you retire. For example, in the United States the average cost of a hospital stay increased 90 percent from 2000 to 2010, climbing from $17,390 to $33,079 according to the Health Industry Distributors Association. The better you plan for these high health care costs now, the more comfortable and secure your retirement will be. So how do you plan? Step one is no surprise: educate yourself. Learn about your options for health expense coverage. […] Read more »

With $16.7B in new money, a banner year for Dimensional Fund Advisors

DImensional Fund Advisors

By Jason Kephart | October 28, 2013 – 1:26 pm EST Dimensional Fund Advisors is on pace for its best year ever as the growing acceptance of factor investing attracts record gobs of cash. DFA has had $16.7 billion of net new deposits through the first three quarters, more than the company has received in any previous calendar year, according to Morningstar Inc. The company’s funds, which primarily are sold through financial advisers, trail only indexing giant The Vanguard Group Inc. in terms of sales so far this year. Not too shabby for the eighth-largest mutual fund company. Since 2010, DFA has leapfrogged OppenheimerFunds Inc. […] Read more »

A Banner Year

The following commentary was forwarded to me by my friend and fellow coach, Fred Taylor:   There really isn’t any reason to brag about any securities firm having a “banner year” when the market is in an upward trend, as it has been, over the last year (and beyond). However, what is particularly interesting is what this particular banner year has to tell us about emerging trends in the investing universe.   Most who have been with us since the early nineties know that we made an academically based, strategic decision to change our investment philosophy to one that was based upon a passive approach […] Read more »

Whose Advice Do We Rely On

New Matson Money Advisors Laffer Odean DSouza Ott

The following commentary was forwarded to me by my friend and fellow coach, Fred Taylor:   Most of our clients have been advised regarding some recent additions to the Matson Money board of advisors. They each add a diversity of both expertise and economic and policy outlook to the board. For those who might have missed the advisories, I’m providing a brief list and biography of each added over this last year.   Arthur B. Laffer, Ph.D. Dr. Laffer’s economic acumen brings a distinct advantage to Matson Money, our coaches and clients with insights on the implication of economic policy on savers and investors. Frequently […] Read more »

When it comes to investing, the past is definitely not prologue!

One of the least important and least informative questions that prospective investors (or anyone else for that matter) can ask of me — or anyone engaged in this profession — is what was your past performance (choose any period: last year, last three years, last ten years, ad infinitum). I have written and spoken on many occasions, as have many others, that past performance is, perhaps, the least reliable predictor of an investor’s future performance. This isn’t just an opinion, it is not only required by the SEC to be placed into just about every investment offering document, and is supported by a copious amount […] Read more »