Category: Wealthy Tales

A Tale of Duration

“Just Learn the Rule of Thumb” What do you mean?  Is it really?  Are you sure?  These are common phrases frequently used when we simply don’t understand something.  I’m sure we all have our unique ways to express our bewilderment.  Duration is a financial term that applies to bonds that falls in the bewilderment category.  […]

A Tale of Magic

A Tale of Magic

Abracadabra! 2% is 3% I was recently asked a question that I had not heard in over a decade or two.  The reason of course is because the risk associated with rising interest rates has not been the topic of news or discussion in quite some time.  The question was-why would I invest in short […]

Creating Certainty in Today’s Uncertain World

Creating Certainty in Today’s Uncertain World

Creating Certainty in Today’s Uncertain World (The Road Less Traveled) If you were able to corral twelve financial planners in a room and asked them to produce the best financial plan for you using identical data you would most likely wind up with twelve different solutions.  How would you know which one is  really the […]

DEALING WITH HIGH INFLATION: A PRESERVATION TALE

DEALING WITH HIGH INFLATION: A PRESERVATION TALE

This tale is specifically written for those that are looking for ways of dealing with high inflation with a secondary consideration for dealing with high inflation and receiving periodic income from your portfolio.  It is why I call it A Preservation Tale, because the objective during periods of high inflation is to preserve purchasing power.  It […]

AN INTERPRETATIVE TALE: “TALKING YOUR BOOK”

AN INTERPRETATIVE TALE: “TALKING YOUR BOOK”

Once an investor makes a commitment to becoming a better investor they must overcome a number of hurdles. One of the most difficult hurdles to surmount is the interpretation of information, reading between the lines or what I call true listening. It is difficult to listen because to truly listen you must understand the point […]

AN INFLATIONARY TALE: “HOW DOES INFLATION AFFECT MY INVESTMENT?”

AN INFLATIONARY TALE: “HOW DOES INFLATION AFFECT MY INVESTMENT?”

Inflation is a complicated concept.  It’s simply not easy to understand but if you choose to ignore it, your money will slowly and stealthily go from your pocket to someone else’s.  Thus the subtitle of this tale is How Does Inflation Affect My Investment.  As a teenager growing up in the 70’s I would hear […]

AN ASSET ALLOCATION TALE: WHAT ARE THE CORE ASSET CLASSES?

AN ASSET ALLOCATION TALE: WHAT ARE THE CORE ASSET CLASSES?

If you have $1 what do you do with it? How about $1000 or $10,000 or more? You only have two choices; you can either spend it or save it. If you save it you can put it in your pocket, you can bury it in the back yard, put it under a mattress or you […]

A TALE OF DIVERSIFICATION: “WHAT IS DIVERSIFICATION?”

A TALE OF DIVERSIFICATION: “WHAT IS DIVERSIFICATION?”

People say diversification is the only free lunch on Wall Street. By this they mean that if you properly diversify your portfolio you can reduce the risk of your portfolio without necessarily reducing the expected return. This is a powerful mathematical concept. What is diversification? It means that for every stock that you buy and add to […]

A REBALANCING TALE: “A FREE BREAKFAST”

A REBALANCING TALE: “A FREE BREAKFAST”

I often get asked the question, “how should I invest within my company retirement plan.” In specific, clients want to know how to invest in their company 401(k) or 403(b) plans. These plans offer the opportunity to grow money on a tax-deferred basis by investing in a number of mutual funds and to save a percentage […]

A MARTINI TALE: THE RATE OF RETURN ON INVESTMENT

A MARTINI TALE: THE RATE OF RETURN ON INVESTMENT

Many people won’t remember that in 1992 Bill Clinton was elected President of the United States based on a simple phrase, “It’s the economy, stupid.” At the time it seemed that the incumbent George H. Bush was unbeatable, but Clinton campaign strategist James Carville is said to have coined the phrase and it became the […]

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