Search Results for: investment

Do Your Investments Suffer From Mutual Fund Overlap?

by
Do Your Investments Suffer From Mutual Fund Overlap?

How many mutual funds do you invest in? Do you have several funds spread out between Roth IRAs, or do you invest in several mutual funds through your company’s 401k retirement plan? Do you know which stocks those funds invest in? You may suffer from mutual fund overlap. You may be surprised to learn that many of these mutual funds overlap. There can be a real danger in overlap, and you may not as diversified as you think. What Is Mutual Fund Overlap? When a mutual fund does well, investors pile into the investment. Eventually, you wind up with incredibly large mutual funds. For example, the Fidelity Contra Fund (Ticker Symbol – FCNTX) has over $56 billion in total assets … Read more

How Sunk Costs Keep You Stuck in Bad Investments

by
Sunk Costs Keep You Stuck in Bad Investments

Last fall, I had tickets to an NFL game. It was freezing that day, and all my friends backed out. But I didn’t want to waste the $70 I’d spent on the ticket. So I went to the game and was absolutely miserable. I hate to admit it, but my friends were right. I didn’t even have much vested interest in the teams playing. Nor did I have a good time at the game; I would’ve been much better off just watching it from the comfort of my couch. But I was obsessed with not having wasted the money I spent on the ticket. In hindsight, I know I should have recognized that it was a sunk cost, chalked up … Read more

Worthy Bonds Review – How to Easily Earn a 5% Rate of Return on Your Investments

by

Wouldn’t it be great if you could score high returns on your investments while supporting companies that share your values? For investors who would prefer adding environmentally friendly and/or socially responsible companies’ stocks to their portfolios, this might seem like a distant dream since socially responsible investing typically isn’t correlated with great returns. Worthy Bonds might be a great option for you! However, there may be a silver lining on the horizon with Worthy Bonds, which sells SEC registered bonds designed to support small businesses in the U.S. Worthy Peer Capital helps small businesses grow their operations by lending proceeds of Worthy Bonds to business owners who, in turn, provide collateral (e.g., inventory) to secure the funds. If you invest … Read more

Investment Temperament Trumps Investment Intelligence – 7 Rules for Successful Investing

by
401k Retirement Plans

The following is a guest post by Larry Swedroe, co-author of “”. If you’d like to contribute a guest post to Money Q&A, check out our guest posting guidelines. Warren Buffett famously once said, “Success in investing doesn’t correlate with IQ. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people in trouble investing.” Temperament trumps intellect because having the right temperament allows you to ignore the “noise” of the market and be a patient, disciplined investor, adhering to your well-thought-out financial plan through the inevitable bad times — times when even good strategies deliver poor outcomes. 7 Rules for Successful Investing My almost 25 years of experience as a financial advisor … Read more

Why Socially Responsible Investing May Not Be Great for Your Investment Returns

by

In conjunction with present-day debates about pressing issues like climate change, unfair labor practices, green energy, and skyrocketing obesity rates, investors are becoming more aware of the roles their money could play in perpetuating societal ills. This has led to the rapid expansion of socially responsible investing (SRI). SRI allows investors to exclude certain types of companies or industries from their investment portfolios based on their own moral values. This sounds like a great idea…in theory. In practice, SRI is much more complicated, and focusing primarily on socially conscientious investments could potentially limit your success in the stock market. While SRI may be beneficial for our global society, it may not be the best strategy for your individual portfolio. If … Read more