Stock prices adjust to reflect the collective expectations of all investors. The basic formula for estimating a stock price is estimating future cash flows and discounting them based on risk. Lower expected cash flows = lower price. Higher risk =…Read More
As of September 2019, life is good here in Austin, TX and much of the United States. Wages are up, jobs creation is abundant, the business community is thriving, home values have been on the rise for years. People under…Read More
The amount of investment risk you take will probably make the biggest difference in how your account performs over short and long periods of time. It deserves our attention more than almost any other topic. The two competing investment objectives…Read More
College funds are designed to be simple so the largest number of people will use them. Signing up is easy. Linking your bank account is easy. Accessing accounts online is easy. Now investing is easy… maybe too easy. Choosing investments…Read More
The stock market brought us gifts just in time for Christmas. The chart above show the % declines from all-time highs over the past five years for the S&P 500. Christmas Eve just happened to be the most significant pull…Read More
Vanguard stepped up its research capabilities and provided more information to investors in 2018 than ever before. Their market outlook for 2019 is particularly well assembled. My cliff notes are below and you can find the entire paper here. Short…Read More
Ben Bernanke can smile… and he is actually kind of funny. The perfectly formal and stiff Bernanke we remember from appearances during his tenure at the Fed spoke freely with occasional wit and humor at a November 2018 lunch meeting…Read More
A Donor Advised Fund (DAF) is kind of like your own personal endowment, but without the administrative costs and hassles. A DAF is an investment account that receives your charitable donations, allows you to take the tax deduction in the…Read More
If you have open enrollment between now and the end of the year, here are some important considerations. Health insurance – if your employer offers a high-deductible plan with an HSA account and matching funding, this may be worth strong…Read More
The Roth IRA is fantastic. When you deposit funds to a Roth IRA, the IRS tells us that you will never be taxed again on that money. This can be particularly compelling if you are expecting significant taxable income in…Read More
