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Along with fund performance and risk ratios, expense ratios are a critical factor in determining the potential of funds to outperform the indexes and their peers, but they are easily overshadowed by robust returns in strong markets.  Now that the market is settling in, and fund returns are reaching relative parity with the market, expense ratios become even more important.

A thoughtful client expressed concern recently because of a CNNMoney article titled “‘Extreme Fear’ is Back for the Stock Market”.

To which my initial response was:  So What?

Early in my financial planning career, I learned the first obligation of a true financial advisor:  Protect your clients from the financial services industry. 

If you listen to any of the world’s leading investors they will tell you that nothing is more important to long-term investment success than a clear investment philosophy. Investment strategy, while important, is nothing more than a manifestation of an investment philosophy.

The need for retirement planning didn’t really exist until well into the 1970s. Up to that point, people worked until age 65, spent a few years in leisure through their life expectancy which was about 69. Many retirees of that era were able to coast into retirement with a cushy pension plan.

I think all advisors have a list of things that we wish that product salespeople would tell their clients.  When they come to us, we get to tell them the “bad news”.  And then they feel bad because they did something wrong (I’ve learned I never score bonus points with prospective clients by telling them they messed up).  Here are some of our most recent experien

The above chart teaches some great lessons on investing.  It shows two important data points per year for the S&P 500 Index from 1980 thru April 30, 2015.  Those two points are 1) the overall rate of return including dividends each year shown as the grey bars, and 2) the largest intra-year drop that occurred during the year noted by the purple dots (in other words, the largest pea

With more than 10,000 Baby Boomers crossing the retirement threshold every day, the Social Security check writing machine has kicked into overdrive.

While recently visiting four of my Exceptional Grandchildren in South Africa, I learned about a wonderful program that made me rethink my commitment to helping those with basic needs.  The KFC (aka “Kentucky Fried Chicken”) Add Hope Campaign raises funds for meals for children throughout South Africa.  Customers can participate by adding “Hope”

After costs, the return on the average actively managed dollar will be less than the return on the average passively managed dollar for any time period.
—William F. Sharpe, 1990 Nobel Laureate