Value Premium Investing - How Viable Is It Today?

Value Premium Investing – How Viable Is It Today?

It’s no secret that in U.S. markets, value stocks have been underperforming relative to growth stocks for around a decade. Has the Value Premium Lost its Mojo? Are the underwhelming returns a temporary,

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The Randomness of Global Equity Returns

The Randomness of Global Equity Returns

Investment opportunities for over 15,000 publicly traded companies exist all around the globe. Fluctuations in performance from year to year add to the complexity of investing globally, and provide little

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Good Advice For Your Personal Financial Planning

Good Advice For Your Personal Financial Planning

In today’s world of one-page financial plans, bargain-basement fund pricing and automated investing tools, you don’t just need advice. You need good advice.

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What Are Liquid Investments?

What Are Liquid Investments?

What are Liquid Investments? When a holding is liquid, it simply means you can sell it anytime the market in which it trades is open for business, without losing your proverbial shirt in the exchange.

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The Uncommon Average

The Uncommon Average

The US stock market has delivered an average annual return of around 10% since 1926. But short-term results may vary, and in any given period stock returns can be positive, negative, or flat. When setting

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6 Tax Planning Strategies to Optimize Your Retirement Wealth

6 Tax Planning Strategies to Optimize Your Retirement Wealth

You’ll benefit from the tax planning strategies in this post, whether you are currently retired or are still counting down the years, months, or days until retirement. Being deliberate about your

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Earning The Equity Risk Premium

Earning The Equity Risk Premium

A rubric of modern portfolio theory taught at colleges and universities holds that investors get paid extra return for taking risk. The risk premium is the amount you get paid for owning a risky asset.

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Five Financial Adages for Thriving in Volatile Markets

Sometimes the best, most rigorously developed financial advice is so obvious, it’s become cliché. And yet, investors often end up abandoning this same advice when volatile markets are on the rise. Why

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Understanding How Investments are Taxed Differently

Taxes in retirement can have serious impacts and different investments are taxed differently. Retirees should be aware their taxable income could have an impact on more than their investment portfolio...

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Objective Advice From Fee Only Advisors

Understanding How Fee Only Advisors Work [Infographic]

The vast majority of employees of banks, brokerage firms, and insurance companies charge a management fee part of the time and are commissioned salespeople at other times. These brokers call themselves

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Diversification

Alternative Reality

Diversification has been called the only free lunch in investing. This idea is based on research showing that diversification, through a combination of assets like stocks and bonds, could reduce volatility

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Financial Anxiety

10 Steps to Easing Financial Anxiety During Major Life Changes

Life happens and, sometimes, it can be incredibly worrisome from a financial standpoint. You’ve struggled through a divorce. Perhaps you’ve faced a life-threatening illness. And, you look at your bank

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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,

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What You Pay, What You Get: Connecting Price and Expected Returns

It has been more than 50 years since the idea of stock prices containing all relevant information was put forth. Information might come in the form of data from a company’s financial statements, news

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The Impact of Inflation

This erosion of the real purchasing power of wealth is called inflation. Inflation is an important element of investing. In many cases, the reason for saving today is to support future spending. Therefore,

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Models, Uncertainty, and the Importance of Trust

Models are approximations of the world. They are simplifications of reality. Models can be useful for gaining insights that help us make good decisions. But they can also be dangerous if someone is overconfident

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What Is Correlation (and Why Would You Care)?

Here at Finley Wealth Management, we try to keep the financial jargon to a minimum. But even where we may succeed, you’re likely to encounter references elsewhere that can turn valuable information into

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Tuning Out the Noise

For investors, it can be easy to feel overwhelmed by the relentless stream of news about markets. Being bombarded with data and headlines presented as impactful to your financial well-being can evoke

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A Focus on Fixed Income

It’s been approximately a decade since the Great Recession began. By year-end 2008, the U.S. Federal Reserve (the Fed) had lowered the target federal funds rate to near-zero and embarked on an aggressive

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What’s Social Security Got for You?

  Building the best strategy starts with pinpointing your benefit at different ages. Back in the late 1980s, when much like today there was mounting concern about the future of Social Security, Congress

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Doing Well and Doing Good?

Growing interest in the impact of fossil fuels on the global climate may spark questions about whether individuals can integrate their values around sustainability with their investment goals and, if so,

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Evidence-Based Investing vs. Indexing

Making a Good Thing Even Better As the public grows increasingly familiar with “passive” or “index” investing, it’s becoming easier for individual investors to gain cost-effective exposure to

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Sailing with the Tides

  Embarking on a financial plan is like sailing around the world. The voyage won’t always go to plan, and there’ll be rough seas. But the odds of reaching your destination increase greatly if

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10 Things To Do When Markets Get Scary

“This is a test; this is only a test. Had this been an actual emergency …” The truth is, the markets are doing just what markets do from time to time, they correct themselves. In fact, overall market

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Timing is Critical for Boomers Preparing to Claim Social Security

Make the Most of Your Benefits It has begun. America’s largest generation, the 79 million strong, post World War II baby-boomers has begun cashing in on its Social Security benefits. And, just as history

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Our Jekyll-Hyde Relationship with Investment Risk

“What the imagination can’t conjure, reality delivers with a shrug.” – Trumbo (movie voice-over) Whether it’s the recent destruction wrought by Canada’s Fort McMurray oil sands wildfire, a

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Cost Control: An Investor’s Greatest Investment

In the mid-1800s, is a collection of essays entitled “Conduct of Life,” Ralph Waldo Emerson observed, “Money often costs too much.” More than 150 years later, his words remain well worth heeding,

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The Vital Role of Rebalancing

If there is a universal investment ideal, it is this: Every investor wants to buy low and sell high. What if we told you there is a disciplined process for doing just that and staying on track toward your

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Market Timing: The Built-in Hurdle

Market timing generally refers to approaches that seek to outperform a traditional static asset allocation by switching back and forth between asset classes. However, as shown in this article, these approaches

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Home Bias and Global Diversification

By pursuing a globally diversified approach to investing, one doesn’t have to attempt to pick winners to achieve a rewarding investment experience. Every day we enjoy the benefits of an interconnected

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