Investors Don’t Understand Target Date Funds

Employees were surveyed regarding their understanding of the target date funds that have been touted is the great panacea for 401(k) and other similar employer-sponsored retirement accounts. The survey results show a widespread lack of understanding and basic investor education. Among the frightening results: Nearly 62% of respondents thought they would be able to retire on the fund’s target date. …

Mutual Fund Returns – Skill or Luck?

Now that we must rely on our investment prowess to provide sustainable retirement income, it is more important than ever to understand investing in mutual funds does not create wealth – quite the opposite. Two of the most pre-eminent economists alive today, Eugene Fama and Kenneth French, have recently published a paper that revisits, yet again, the question of whether …

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 …