10 Items for Your Year-End To-Do List

Can you believe it? 2009 is almost over! The older I get, the faster they go! I thought I would put together a quick note to remind you of some helpful, year-end tasks you may want to consider: 1. Rebalance investment accounts – this is something few people do but I highly recommend. This involves bringing your investment accounts back …

Who Do I Trust?

For well over a decade, my unrelenting focus has been understanding financial risk and developing practical strategies for managing the risk created by job loss, illness or disability, bear markets and funding thirty years of retirement. Since 1997, I have watched the job of managing those risks become increasingly complex. One reason understanding and managing financial risk is more difficult …

On Randomness

One of the most fundamental and most difficult concepts for investors to wrap their brain around is the randomness of markets. This is most likely because, as Terry Burnham ably shows us, in Mean Markets and Lizard Brains, humans are just not wired to deal with probability and randomness. In the investing classic, A Random Walk Down Wall Street, Princeton …

The mother of all reverse compounding problems

The only proven way to achieve a passive double-digit yield to replace your income is to own businesses – either directly or indirectly through common stock ownership. But this creates a challenge. The chart shows each of the bear market declines since the end of World War One. We are in the tenth decade and there have been twenty bear …

Problems with Viatical and Life Settlements

UPDATED 2019: This article, originally published in 2008, continues to be one of our most popular posts. Please keep in mind that it is possible some of the facts offered have changed throughout the years, but our sentiments about this topic have not.  I have received several questions in recent weeks asking for my opinion on a life settlements. Rather …