A Lesson in Diversification and Regret Minimization

“Diversification is always working; sometimes you’ll like the results and sometimes you won’t.” – Larry Swedroe Traders get to use cool sayings like, “let your winners run but cut your losers quickly.” Long-term investors need to periodically do the exact opposite and sell their winners to buy their losers. Mean reversion rests on the premise of…

The Most Overused Analogies in Finance

I love using analogies to explain complex ideas. It’s a great way to make boring or difficult topics more relatable and easily understood. But when you read as much financial information as I do you start to see some repetition in the analogies used to describe the markets and financial planning. I’m not saying most…

Time to Refinance Your Mortgage?

“Given the large percentage [of Americans] who never refinance, it’s really important for them to step back and determine whether there’s an opportunity for them to get this big benefit that’s potentially out there,” – Steve Deggendorf, Fannie Mae

How Spending Money Affects Happiness

“The business of life is the acquisition of memories. In the end, that’s all there is.” – Mr. Carson, Downton Abbey Money can’t buy happiness, but it can make you happier up to a certain point. By now most people have seen the studies that suggest $75,000 a year is the income threshold for happiness….