Financial Planning by Decade: Your 20’s

After two decades of relying almost exclusively on your parents to foot your bills, you may embrace your 20s as a time for welcomed financial independence. There are five steps to help you on your way.

The One Page Financial Plan Synopsis Part 3: Not All Goals Are Attainable

In The One Page Financial Plan, Richards tells one painful case where a client realized that her globetrotting travel goals were simply unattainable. It was a hard part of the book to read but an important one, for it is indicative of real life. After all disappointment comes when there is a gap between expectations and the reality of the situation.

The One Page Financial Plan Synopsis Part 2: Awareness

The second key takeaway is that awareness is key. As humans, we like to avoid pain. A great example is budgeting. Budgeting to many is a scary word: something that, if applied “will hold us from buying what we want” and that make us “feel guilty about paying for the things we need.” In reality, however, a budget should be used as a tool for awareness.

The One Page Financial Plan Synopsis Part 1: Values

When it comes to money and investing, the questions people ask themselves typically involve the usual suspects: When? Where? How? How much? In The One Page Financial Plan, Richards turns this on its head by asking the question “Why”. Why is money important to you?

How Do You Define Success?

It is no secret that the investment industry’s reputation has suffered in recent years. Between scandals, culture crises and underperforming active management, many are questioning the validity of the investment advisor model. Indeed, more and more are turning to DIY solutions of virtual advisors and online “e-vesting”. “So why even have an advisor?” The Economist […]

The behavior gap

The Behavior Gap

Research firm DALBAR’s “Quantitative Analysis of Investor Behavior” has because somewhat famous for showing that in terms of performance results, investors tend to be their own worst enemy. For instance, for the 20-year period ending in 2010, the annualized return of the S&P 500 was 9.14%, while the average equity fund investor gained only 3.83% per […]