Shares of stock represent very small ownership stakes in businesses. How do we arrive at a fair value of what any business is worth? You take all future estimated cash flows from the business, and discount them back a certain rate to a present value. … [Read more...] about It’s All About Discount Rates
Investor Reassurance
The longer an investor's portfolio is beneath an all-time high, the more doubts start to creep into their mind. The common words of wisdom begin to grow old such as "stay the course", "buy low", or "it always recovers". Patience is tested. One may … [Read more...] about Investor Reassurance
Student Loan Forgiveness
I am aware that no one really wants to hear their financial advisor voice opinions over a political issue, so I'll try to only do this on rare occasions. Student loans and college planning are well within the realm of financial planning, so here we … [Read more...] about Student Loan Forgiveness
“We’re Talking Millions”
Last year financial author and educator, Paul Merriman, appeared for an interview on The Rational Reminder podcast (check it out here). During the interview, Merriman discussed his most recent book "We're Talking Millions" which outlines 12 steps for … [Read more...] about “We’re Talking Millions”
Take Your Money Out of The Bank
I am not advocating we initiate a run on the banks, but we are at a point in the interest rate cycle where I think it makes good sense to keep as little in the bank as possible. Banks have not increased deposit rates just yet, meanwhile you can get … [Read more...] about Take Your Money Out of The Bank
Is This Worse Than 2008?
We are now 164 days into a market decline with the S&P 500 Index experiencing a drop of 24.5% thus far. This is the longest decline we have seen since May 2015 - February 2016, which lasted 267 days but only resulted in a 15.2% decline. This … [Read more...] about Is This Worse Than 2008?
I-Bonds: Everything to Know
I-Bonds can be a great safe option to consider. It is a fixed income instrument with no default risk, no principal risk, and no inflation risk. While they have been written about extensively by financial columnists for the last year or so for … [Read more...] about I-Bonds: Everything to Know
Adam Dunn, Clayton Kershaw, and Value Stocks
Adam Dunn was an intimidating Major League Baseball player. At 6'6", 285 pounds, and nicknamed "Big Donkey" he could hit a ball a country mile. He wasn't much of a contact hitter, leading the league in strikeouts on 4 different occasions and ranking … [Read more...] about Adam Dunn, Clayton Kershaw, and Value Stocks
Interest Rate Math Reposted
Below is a short blog post I wrote in June of 2018 regarding interest rate math. It's always entertaining to look back and read what the current thoughts were at that time. I remember 2018 quite well, and everyone and their mother seemed to think … [Read more...] about Interest Rate Math Reposted
Annuities: The Good, The Bad, The Ugly
When equity markets dip 10%+ the annuity pitches get amplified by 5 orders of magnitude as people start exploring "alternative investments" to equities and bonds. Are annuities a viable solution, or are they simply pushed aggressively by agents … [Read more...] about Annuities: The Good, The Bad, The Ugly
