Risk and Return are Joined at the Head

I found this article on Risk & Return (By Chuck Jaffe, MarketWatch) to be worth reading.

Steve

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BOSTON (MarketWatch) — Some people are afraid of making a mistake by taking on risk, while others take risks that lead to mistakes.

Such behaviors are the focus of the new book “Investment Mistakes Even Smart Investors Make … and How to Avoid Them,” by Larry Swedroe of Buckingham Asset Management in St. Louis, who is one of the most thoughtful financial advisers.

No matter your feelings about the market — if you think the current run will continue or you expect a downturn – the mistake comes when you let those feelings override long-term strategy.

That’s what investors need to guard against now. And anyone who avoids the bulk of the book’s 77 different errors is likely to reach the end of their investing lifetime pretty happy with the results.

That said, no blueprint will help an investor avoid all of the potential and theoretical booby-traps. Moreover, even the best investors make mistakes; the key is to avoid the giant ones from which there is no recovery, and to avoid being bled to death by an endless series of small errors.  Read the complete article here:

Risk and return are joined at the head – Chuck Jaffe – MarketWatch.

How to Take a Month Off

How to take a month off

Building a Family Dynasty Group News | LinkedIn

Building a Family Dynasty Group News | LinkedIn.

Building a Family Dynasty Group News | LinkedIn

Building a Family Dynasty Group News | LinkedIn.

What to Do With Your Tax Refund

NEW YORK (MainStreet) – Simply utter the words “Tax Day” to friends and they’ll likely respond with a cringe and some serious eye rolling. Yet despite the stress and drudge many associate with filing tax returns, there is a light at the end of all the paperwork: the glorious tax refund.

As MainStreet has reported, it isn’t exactly a good thing to get a large refund, because that just means Uncle Sam is handing back the money you loaned it all year – without paying you any interest. But many still prefer to receive that big, fat check in the mail anyway.

Last year’s average refund wasn’t too shabby, coming in at $2,985, according to the IRS. And Larchmont, N.Y.-based tax attorney Julian Block predicts this year’s refund to be “a shade over $3,000″ on average, such as around $3,050.

via What to Do With Your Tax Refund – MainStreet.

Invest With the Silent Minority

A routine report from Morningstar contains some great advice for investors, if you know how to interpret it. The report notes that passively managed funds basically index funds had a net inflow of more than $76 billion in 2011. In stark contrast, actively managed funds, where highly paid fund managers attempt to beat the returns of a designated benchmark, had net outflows of $9.4 billion.

via Invest With the Silent Minority – On Retirement usnews.com.

The Stages of Change and Starting New Healthy Habits

Reminders about Starting New Healthy HabitsFebruary 17, 2012 By Matthew Killorin Comments 0change ahead. Matthew Killorin Have you ever decided to make a change in your life to improve your health, only to return to the unhealthy behavior you were doing before? We’ve all done it at one time or another – maybe it was trying to improve our sleep routine, giving up cigarettes, or maybe improving our diet. For a time, we’re doing a good job of sticking to our new regimen, but then for some reason, we go back to doing the unhealthy habit. That backslide into the old, unhealthy habit can be discouraging, but we shouldn’t let that deter us from trying again. According to experts, that backslide, or “relapse”, is a normal part of the habit-forming process.

via The Stages of Change and Starting New Healthy Habits.

Non-financial planning for financial hardship

This week adds four more strategies that are as much about people as about money.

1. Build a good support team before you need one. In the middle of a financial trauma isn’t a good time to find professionals you can trust. This is best done when you are not under pressure and can take the time you need to research, interview, and analyze options. Professionals you need to vet and have on call could include an attorney, accountant, doctor, therapist, financial planner, insurance broker, bookkeeper, and banker.

2. Keep your career skills up to date

Read the complete article here:  Rick Kahler: Non-financial planning for financial hardship | Financial Awakenings.