When it comes to evaluating investment performance, the Sharpe Ratio has become one of the most respected tools. Named after Nobel laureate William F. Sharpe, the Sharpe Ratio is more than just a statistical measure; it’s a powerful tool that helps investors understand the risk-adjusted return of an investment strategy. In this article, we’ll explore …
When it comes to investing, the focus is usually on returns, or risk. But believe it or not, the small expenses that you incur along the way can actually have a huge impact on your overall net worth. While these expenses can’t be avoided, they can certainly be minimized … and doing so can save you a fortune.
In last month’s article, we addressed the topic of active vs. passive management. Specifically, we provided clear and comprehensive evidence that active management is never a prudent decision. Today, we’d like to elaborate on this topic by relaying the story of a famous bet made by the greatest investor of all time – Warren Buffett. Mr. Buffett shares our perspective on this issue, and in typical fashion, made a large wager to prove his point.
Planning for retirement may seem intimidating, but it’s not quite as difficult as you might expect. In fact, with the answers to just a few key questions, you can have a good idea of where you’re headed, and how rosy that final destination may be. You can also easily pinpoint your “move back in with the kids date,” in the event that you need to give them some advance notice.
When you begin to save for retirement, the easiest way to get started is to enroll in your employer-sponsored retirement plan (401(k), 403(b), TSP, etc.). The next step (or the first step, for those who don’t have access to an employer-sponsored plan) is generally to open an Individual Retirement Account (IRA). These types of accounts provide great tax advantages, and come in two types: “Roth” and “Traditional.”
