When you think about greatness, we default to Micheal Jordan, President Lincoln or Albert Einstein. The Los Angeles Unified School District’s 457(b) plan may not appear to be great but when compared to the typical 403(b) plan, it is most certainly GREAT!Learn More
According to the Tax Foundation, the richest Americans pay almost all of the Federal Income Taxes assessed by the IRS. Is this good news for us ordinary income earners? Well, perhaps not, as it is an indication of a severe decline in the middle class.Learn More
Constructing a broadly diversified, low-cost portfolio is straight forward. But human beings continue to struggle to wrap their heads around this idea of the nonmechanical aspect of investing–what’s between our ears. The financial media is of NO HELP what-so-ever! First off, the well-known financial pundits imply that you can beat the averages by constructing an “exciting” portfolio. On the other side of the argument based on Jack Bogle and his author followers including this writer is to construct a “boring” portfolio. A boring portfolio is defined as a broadly diversified plan that performs close to the market averages, not too high (speculative) and not too low (managers making bad choices and charging the investor too much). My portfolio is boring because it neither exceeds or falls below the averages. It’s just right. That’s what I call genuine excitement. This excitement is the reasonable and sane returns I earned this past year. Nothing wrong with my 5.9% return for a conservatively constructed portfolio and the fun I have spending it supporting my values.
I have updated my data to include the 2016 returns of my portfolio. You can see for yourself. The enclosed graph shows an exciting portfolio during the 1990s and a boring portfolio since 2003. My graph will help you answer the question: Do you want to construct an exciting or a boring portfolio?
Lots to discuss. Pictures of my latest travel adventure to Cuba, dissecting and evaluating my 5.9% portfolio return for the calendar year 2016, and explaining the power of simplicity.Learn More
What do you do in the wake of a personal devastation? How would you heal from the shock, pain, fear, and anger of a sudden loss? In this blog post, I hope you will find a sense of security, or even inspiration as you walk with me on my path this past year. Sudden misfortune creates strong emotions, and opportunities. Preparing for the death of a loved one overlaps with preparing for a loss after a divorce, a close family member, relationship, or a significant financial loss of any kind through litigation, job loss, or from a stock market crash. Emotional preparation has limitations, but not all is impossible. Know how you might react and plan ahead of time to begin the healing process.
I know what it’s like to lose the love of my life for 40 years. I can confidently say that it was how I reacted to my shocking tragedy that made the difference. When tragedy strikes isn’t it always how we respond over the long term that counts? Will I be bitter and angry forever, or will I grow into a better human being with more compassion and kindness than ever before.