Mutual funds have many costs, all of which affect the net return to investors. Costs matter. Whether you're buying a car or selecting an investment strategy, the costs you expect to pay are likely to be an important factor in making any major financial decision. People rely on a lot of different information about costs to help inform these decisions. When you buy a car, for example, the sticker price indicates approximately how much you can expect to pay for the car itself. But the costs of … [Read more...] about Total Cost of Ownership
The Happiness Equation
As an investor, your happiness depends on having realistic expectations about returns and viewing market events in proper context. These two factors can drive your sense of financial well-being and influence your financial outcome. Click HERE to read "The Happiness Equation", by Dimensional Fund Advisors Vice President Brad Steiman. … [Read more...] about The Happiness Equation
From Dimensional: Do Mutual Funds Outperform Benchmarks?
Dimensional Fund Advisors's 2018 analysis of US-based mutual funds shows that only a small percentage of funds have outperformed industry benchmarks after costs—and among top-ranked funds based on past results, only a small percentage have repeated their past success. … [Read more...] about From Dimensional: Do Mutual Funds Outperform Benchmarks?
The ABCs of Education Investing
With school back in session in most of the country, many parents are likely thinking about how best to prepare for their children's future college expenses. Now is a good time to sharpen one's pencil for a few important lessons before heading back into the investing classroom to tackle the issue. THE CALCULUS OF PLANNING FOR FUTURE COLLEGE EXPENSES According to recent data published by the College Board, the annual cost of attending college in the US in 2017-2018 averaged $20,770 at … [Read more...] about The ABCs of Education Investing
The Tao of Wealth Management
The path to success in many areas of life is paved with continual hard work, intense activity, and a day-to-day focus on results. However, for many investors who adopt this approach to managing their wealth, that can be turned upside down. Click HERE to read "The Tao of Wealth Management", by Dimensional Fund Advisors Vice President Jim Parker. … [Read more...] about The Tao of Wealth Management
Where’s the Value?
From 1928-2017 the value premium in the US had a positive annualized return of approximately 3.5%. In seven of the last 10 calendar years, however, the value premium in the US has been negative. This has prompted some investors to wonder if such an extended period of underperformance may be cause for concern. But are periods of underperformance in the value premium that unusual? We can look to history to help make sense of this question. SHORT-TERM RESULTS Exhibit 1 shows yearly … [Read more...] about Where’s the Value?