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Tag Archives | investing behavior

What To Expect From Rising Interest Rates

In December, the Federal Reserve raised the federal-funds lending rate by .25%, only the second increase in the past decade. The day the rate hike was announced I received several calls from journalists, all wanting to know what this means for the economy. My email inbox also started filling up with questions about the effect […]

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Feelings Are Normal, But Not Reliable Investment Guides

The first week of January 2016 I talked with a retired man in need of some retirement planning. He had a portfolio of about $1,000,000 invested in money market and certificates of deposit. His Social Security income was about $25,000 and his lifestyle spending was around $60,000, meaning he needed to withdraw about 3.5% annually […]

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Looking Backward at a “Perfect” Investment

“If I only had a crystal ball.” Every investor has probably made this wish from time to time. We would all like a way to avoid the emotional pain and anxiety that are sure to come when our portfolios lose value due to inevitable market downturns. Surely a perfect investment would spare us that pain. […]

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How to Protect Your Investment Strategy From Yourself

Research shows that most investors and investment advisors woefully underperform the markets. How woeful is woeful? Over the past 30 years, it meant leaving an average of $7,100 per year on the table for every $100,000 invested. For a 401(k) that grows to $1 million at retirement age, this means $71,000 less in retirement income […]

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Brain Can Sabotage Buy-and-Hold Investment Strategy

Over 25 years of writing this column, I have often discussed the value of a static buy-and-hold asset allocation with periodic rebalancing. This means investing specific percentages of your portfolio in several asset classes (a few of which are stocks, bonds, commodities, and real estate). Then, at least once a year, you buy or sell […]

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