When it comes to expected return, we love big numbers. We gravitate to it like paparazzi to a celebrity. We do it with performance and projections because it sells.
But there’s one tiny problem. Our expectations change with the market.
A while back I covered how asset allocation lowers volatility. In it, I showed how four different asset mixes performed against an all stock and an all bond portfolio. It looked like the graph below. It showed how volatility lowers as you decrease the amount of stocks in your portfolio. But did it?
Of course it did. It was a simple exercise to prove a point. But it also showed how much better an all stock portfolio performed over the same period. Continue Reading…
Are you ready to join the mad rush to the tax deadline or did you finish your return early? There’s about two weeks left to get your return finalized, signed, and sent to the IRS. With that in mind, I’ve put this reminder together with info to help you make the most of your refund and get that tax return in on time.
Did you know you might be overpaying capital gains tax on investments because of tax rules that went into effect in 2011? Those new rules changed the way we report capital gains and losses on investments. Under the old rules, it was your job to report cost basis, that’s what you paid for the investment, to the IRS. With the new rules, it’s your broker’s or fund company’s responsibility.