Introduction to Investing

The Humble Arithmetic of Portfolio Management
I am often in the situation that people want to tell me about their unpleasant experiences with financial advisors... The person has spent time with an ‘advisor’ or ‘planner’ at a brokerage firm or fund family or local bank and has come away feeling that all the advisor really wants to do is to steer clients into highfee investments or other strategies that will benefit the advisor and his/her firm. On top of this, many investors are familiar with studies that show that passive investment strategies tend to dominate active strategies over time...
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Choosing Your Portfolio Risk Tolerance
In a recent article, "The Humble Arithmetic of Portfolio Management", I laid out a series of steps for portfolio planning that emphasized how to get the most return for a given level of risk via asset allocation and minimizing fund expenses. Everyone has an interest in getting more return for the risk that they bear, but...how do investors determine how much risk they should take on? This issue is most often tackled in one of two ways... The [preferrable] approach to determining the appropriate risk level for an investor’s portfolio is to analyze the level of portfolio risk and return that is most likely to allow an investor to meet his or her financial goals. See full article...
The Disappearing Retirement, 2012
We have shifted from a society in which employers provided lifetime retirement income via traditional pension plans, to one in which individuals now must manage every aspect of their financial futures, including how much to save and how to invest their retirement savings.

See full article at Morning Star...
New Study Released: How Much Americans Need to Save to Retire, 2011
The Center for Retirement Research at Boston College recently came out with a new analysis of how much Americans need to save in order to be able to maintain a reasonable lifestyle in retirement. Published in November 2011, the report is titled “How Much to Save for a Secure Retirement.”

The study starts with an assumed target “replacement rate” that represents the fraction of pre-retirement income that an individual will be likely to need to maintain their lifestyle in retirement.
See full blog at Portfolioist.com...
FAQ about Modeling Risk
Monte Carlo simulations use historical statistics and mathematical models for the variability in returns on the market and various asset classes as well as individual stocks to forecast the range of possible outcomes associated with a saving, investment, asset allocation, and income plan... Monte Carlo simulations actually generate hundreds of possible futures and then allow you to look at the probability of funding a specific income goal, running out of money, becoming very wealthy, etc. This approach is called Monte Carlo because it involves using the computer to generate many "rolls of the dice."
See full FAQ...
Compiled List of Reading Materials which...
...we believe are important for all investors to read and consider. The list includes books by a range of authors including John Bogle, Ben Stein and Phil DeMuth.

Under Resources, in our main menu, you will see a page called Materials. Go to Materials...

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