Articles by Paul Palmer Jr, CFP®
The credit crunch
While most of you have probably read way too much on the subject already, I thought you might like to hear my thoughts on the subject and how it might affect you. I don’t want to say “I told you” but, I told you a problem was coming.
Putting Risk in Its Place in Your Portfolio: Part 4
In part one of this series, we explained two measures of risk, standard deviation and beta. In part two we talked about correlation and how it is the key driver of total portfolio risk (while most investors only consider beta and standard deviation).
Putting Risk in Its Place in Your Portfolio: Part 3
In part one of this series, we explained two measures of risk, standard deviation and beta. In part two we talked about correlation and how it is the key driver of total portfolio risk (while most investors only consider beta and standard deviation). This is all well and fine, but we’ve only spoken theoretically up to this point.
Putting Risk in Its Place in Your Portfolio: Part 2
Yes this is not fun to learn, but for those of you who have lost a great deal of money (over 30%) in the past, want to know why it may have been avoidable and ways to help prevent it the next time, read on!! In part one of this series, we explained two measures of risk, standard deviation and beta.
Investing Driving You Crazy? Maybe It’s Because You Already Are! (Part 5)
In Part 4 of this series, we discussed 4 of the 7 common emotional biases people exhibit. As a review, emotional biases originate from impulsive feelings or intuition (as opposed to conscious reasoning) and so are much more difficult to correct. The final 3 errors are denial, herding or groupthink and fear and greed (never!).
Investing Driving You Crazy? Maybe Its Because You Already Are! (Part 2)
In part one of this series on investor biases and behavioral finance we discussed the two major investor biases (cognitive and emotional). We recognized that both cognitive and emotional biases result in irrational decisions, with cognitive biases stem from faulty reasoning and emotional biases originating from impulsive feelings or intuition (as opposed to conscious reasoning).
Investing Driving You Crazy? Maybe Its Because You Already Are! (Part 1)
When it comes to your investments and portfolio, are you overconfident? Are you just a bit too greedy? Do you panic at signs of a stock market drop, or become elated during latest surge? Do you choose stocks based on vague feelings? Does a 10% loss bring you more disappointment than an 11% gain brings happiness? If you're like most investors, the answer to at least some, i
A Hot Investment TIP - Treasury Inflation Protected Securities
To quote a Morningstar article from March 2001, “While fast-paced technology high flyers were the subject of some of investors’ favorite “hot” tips going into last year, investors who chased them saw stock values plummet.
Understanding Value vs. Growth Investing
Everyone hears over and over, from Morningstar and other sources, about value versus growth investing. The problem, and reality is, that most investors simply don’t understand the difference between the two philosophies. Notice that I did not say between the two different kinds of stocks. Why? Well, because stocks can float between the two categories based on certain fundamentals.
Interpreting 529 Plan Expenses
529 plans have many benefits, ranging from the fact that the owner, not the beneficiary controls the assets to the fact that earnings grow tax free from federal taxes and withdrawals for qualified education expenses are free from federal taxes through 2010.
Should You Use More Than One Financial Advisor?
Many of you reading this article today have more than one financial advisor. In fact, many of you have more than two financial advisors, plus a 401k for which you may receive no input from either of your one, two or three advisors. This can create inherent problems and conflicts.
Seven Things NOT to Assume About Retirement Planning
1. You’ll retire at age 65 and live to age 80. Forced early retirement is a trend that won’t go away soon. Aim to retire at age 65, but calculate that you might have to retire at 58 and calculate that you’ll need enough income in retirement to last you until at least age 90.
Putting Risk in Its Place in Your Portfolio: Part 1
Most investors see risk as the chance that they may lose money. But academics and statisticians, who have been studying risk in the financial markets for the past half-century, define risk as measurable uncertainty. And that additional notion — that risk can be measured — makes all the difference. If you can quantify risk, you can use the information to become a smarter investor.
Investor Vs. Speculator: Which Are You?
A huge misnomer is that anyone holding stocks or bonds is an “investor. ” In fact is that this couldn’t be further from the truth! In this assumption, we must first attempt to define investing and speculating. According the Benjamin Graham, “An investment operation is one, which upon thorough analysis, promises safety of principal and an adequate return.
Investing Driving You Crazy? Maybe It's Because You Already Are! (Part 4)
In Part 3 of this series, we discussed the final cognitive biases, namely overconfidence, selective memory and mental accounting. Remember, cognitive biases are biases or errors that are based on empirical factual knowledge. In this article we will discuss and provide examples of some emotional biases (continued in Part 5).
Investing Driving You Crazy? Maybe Its Because You Already Are! (Part 3)
In Part 3 of this series, we will continue on in our analysis of cognitive biases. In Part 2 we discussed anchoring and adjustment, availability and representativeness. In this article we will discuss selective memory, overconfidence and mental accounting.
Beneficiary Designation Planning – Not As Simple As You Think
Most of us are familiar with the term beneficiary designation, and while the obvious choices such as your spouse, children, or parents come to mind, they may not be the most appropriate choices. Often, beneficiary designations are not updated or coordinated with an estate plan, especially in wills and trusts, and after mistakes are made, your heirs may have to live with them.
College Savings Plans – The Benefits of a 529 Plan
College Savings Plans – The Benefits of a 529 Plan
Do you know what a “529” college savings plan is and how they work? If you’re concerned about investing enough money to send your children to college, it’s critical you know about this new, powerful way to save for higher education.
Do you know what a “529” college savings plan is and how they work? If you’re concerned about investing enough money to send your children to college, it’s critical you know about this new, powerful way to save for higher education.
