The takeaway: GameStop is a declining company, whose stock enabled one investor to turn $53,000 into $48 million in barely 18 months. The stock’s unlikely investors have driven its share price to new heights, savaged Wall Street hedge funds, and caught the eye of Congress, due to fears their actions are roiling financial markets. It’s … [Read more…]
The takeaway: Protect yourself from sequence of returns risk so it doesn’t wreak havoc with your retirement plans. Sequence of returns risk is the danger that market returns will decimate your nest-egg, just as you finally need that money to live on. If you plan to ever live off your savings, you’ll want to understand … [Read more…]
Last week I met up with my college roommate in San Diego. I reserved us each a room on the beautiful San Diego bay. The rooms were right next door to each other. Both had gorgeous views and identical amenities. Yet, my room was 30% more expensive than hers. They were identical rooms! (That got handled, … [Read more…]
“But ma’am, you get what you pay for. Stop looking at our mutual fund fees. Instead, look at our investment returns. Returns are where the money is,” said the rep for my 401(k). With clenched teeth, I resisted grabbing him by his Armani tie and saying, “Your fees will destroy my returns.” “Ma’am! Quit thinking … [Read more…]
Hey, Boomer. There’s money to be made in index funds. And one of the richest men in the world thinks so too. Warren Buffett has instructed that 90% of the cash he bequests to his wife be invested in index funds. Why? Why not leave her some shares in Berkshire Hathaway, the magnificent company … [Read more…]