Something rare happened in the S&P 500 this year. The index has experienced a double-double-digit drawdown (kind of like double secret probation?) for the first time since 1990. That means the S&P 500 fell 10%, made those losses back, only to fall 10% yet again. The only other years on record I could find when this happened…
Good News & Bad News About Saving For College
I was having drinks last week with a group who were all in a similar situation as me — working in the wealth management field with young children at home. The topic of saving for college came up since many of us have multiple little ones to plan for continuing education some day. We all…
Normal Accidents in the Stock Market
Deep Survival by Laurence Gonzales is one of the best books I’ve read over the past few years. it’s a mixture of unbelievable stories of survival, bravery, stupidity, adventure, and the psychology of how humans react under pressure situation. Gonzales introduced me to the book Normal Accidents by Charles Perrow while describing complex systems: Perrow’s Normal Accidents, first published in…
What’s Not Going to Change in Financial Services?
I had a great time in Wisconsin earlier this week talking to the CFA and FPA societies in Madison and Milwaukee. My talks centered around where I think the financial services industry is going in the future, how to stand out from the crowd in an era where information is abundant, and why fighting new…
Animal Spirits Episode 58: The Sellers Are in Control
On this week’s Animal Spirits with Michael & Ben we discuss: Michael’s two appearances on CNBC. The couple who retired in their 30s with $1 million. Are the FIRE people offering unrealistic expectations? Can your savings really last 50+ years using the 4% rule? When FIRE goes wrong. How much money does the average retiree…
The 80-Hour Workweek
A reader asks: I see amongst new grads that work in the finance industry that there is a general sentiment that more hours worked equates to some level prestige. The extreme example is investment banking where you most likely work 80+ hours a week. Maybe it’s just me experiencing this but regardless I’d like to hear…
Talk Your Book: Investing in Commodities
Today’s Animal Spirits: Talk Your Book is presented by Graniteshares: We discuss: Boom and bust nature of commodities What is the role of commodities in a portfolio — manage risk or price appreciation? Why would commodities add a risk management component to a typical portfolio? Do commodities need inflation to do well or is it…
Your Household CFO
I liked this from The Next Millionaire Next Door by Thomas Stanley and Sarah Stanley Fallaw: WANTED: Household CFO Description: The role of Household CFO is to ensure his/her household is building wealth in order to ultimately achieve financial independence. The Household CFO will oversee the household’s budgeting and financial planning. He/she will be required to create, manage,…
The Amazons of the Fund World
The Wall Street Journal had a headline that got a bunch of finance people in a tizzy yesterday: What?! The father of index funds is worried about…index funds?! People need to settle down and read the actual article. But before I get to this story let’s look at a cool graph about Amazon Prime you can…
The Biggest Myth in Retirement Savings
Congress passed the Revenue of Act of 1978 to lower tax brackets on individuals. Within that act, there was a short 900-word section 401(k) which was added with the intent of limiting executive compensation (Narrator: It did not have that effect). Ted Benna, an insurance company consultant at the time, realized this part of the…
