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You Can’t Get Decent Returns Without Risk

This could, or could not, be a myth depending on how we define “decent” and “risk”. My definition of “decent” is a rate of return that exceeds the “risk-free” rate plus inflation.   The risk-free rate is typically the T-bill rate or long-term government bond yield.  The current long-term composite (>10yrs) is 2.12, down from …Read More


THE TWO MOST IMPORTANT FINANCIAL TOOLS FOR 2017

This post heading is NOT a myth, for once. Think about common risks in your life and the tactics you use to minimize or avoid them. If you’re trying to lose weight then you burn more calories (read: Exercise) and consume fewer or at least better calories (quality proteins, greens, fruits & oils versus sugars, …Read More


Follow Your Gut

I want to profusely thank Brian Love for his excellent Behavioral Finance article in the latest issue of Financial Advisor IQ (The Incredible “Shrinking” Advisor).  Love’s article reiterates why the most important aspect of our profession is not securities analysis or projecting rates of return.  So I title this post with the myth that you should …Read More


Caveat Venditor

We’re all too familiar with the doctrine of “caveat emptor”, or buyer beware, which places all responsibility for a bad deal on the shoulders of the consumer.  Caveat venditor reverses that responsibility, placing all responsibility upon the seller.  With financial products and services, both are true, as the case below shows.  A quick check with http://brokercheck.finra.org/ …Read More


Financial Abuse of Seniors Isn’t Really a Problem

I want to remind you again, especially with this title, that the titles of these posts are myths.A recent article in Financial Planning Magazine detailed the red flags that regulators look for to catch and prevent financial abuse of seniors.  Here they are, summarized by me: Taking too much risk with the senior client’s money …Read More