Category - Investing

1
The 3 Main Investment Styles: Pros and Cons
2
After-Tax Investment Considerations
3
How to Make Your Saving Automatic
4
6 Year End Tips for a Financially Productive 2017
5
Using Factor Investing To Boost Country Specific Returns

The 3 Main Investment Styles: Pros and Cons

By Eve Kaplan, CFP®

There are pros and cons to investing in the three main investment styles: active, passive and “evidence-based investing.” The benefits of “evidence-based investing” will be clearer after reviewing “active” vs. “passive” investing styles.

1. Active Investing through Mutual Funds: “Active” investors aim to “beat the market” (or a portion of a market) by investing in a large number of holdings through mutual funds and some Exchange Traded Funds (ETFs). The theory of doing better than the market sounds great but does it work well in practice? As a former active mutual fund manager, I can say: …

Read More

After-Tax Investment Considerations

Some individuals have the ability to contribute after-tax amounts to their employer-sponsored plans such as a tax-deferred 401k or a defined benefit pension. Generally, since these amounts are after-tax, the contributions start adding up to a sizable amount known as basis. Basis is simply the amount of after-tax money put into these accounts that is not taxed when it’s withdrawn. However, any earnings on the basis are taxable.

Individuals considering contributing after-tax amounts to the above plans may also consider if it makes sense to contribute to a non-qualified brokerage account. Like the aforementioned employer-sponsored plans, contributions to a non-qualified …

Read More

How to Make Your Saving Automatic

Sometimes it can be difficult to save for emergencies or for retirement. While physically not demanding, the mental strain can be a hump that is hard to get over. In other words, we experience a little bit of “pain” or mental anguish if we have to physically hand over money or write a check.

So how can we overcome this anguish? Automate.

First, determine how much you need for an emergency. This can either be to start the fund or to replenish amounts that have been used. Generally, it’s a good idea to have 3 to 6 months of non-discretionary …

Read More

6 Year End Tips for a Financially Productive 2017

Maroon Bells – Photo courtesy of Jason Raskie

As 2016 comes to a close in a few weeks and we start into 2017, here are some good tips to consider to start 2017 off with some good strategies that will hopefully become habits.

  1. If you’re not doing so already, set up your payroll deductions to save the maximum to your 401k. There’s plenty of time to your payroll allocated so your deductions start coming out on the first paycheck in January. The 2017 maximum contributions are $18,000 for those under age 50 and $24,000 for those age 50 or older.
Read More

Using Factor Investing To Boost Country Specific Returns

John Blood has a nice article in Investment Advisor magazine entitled “Factor Investing: A Post-Modern Portfolio Theory.”

In a previous article I talked about “Factor Investing: Small and Value Factors.” In this article I would like to highlight another factor, that of “profitability” which is sometimes called “quality” instead.

This latest factor of investing is relatively new, having been “discovered” relatively recently in papers by Robert Novy-Marx (2012) and Fama/French (2015).

Unlike size and value, quality has no universally accepted definition.

The rough idea is that the stock price of companies that are profitable are more …

Read More

Copyright 2014 FiGuide.com   About Us   Contact Us   Our Advisors       Login