Tag Archives: investing

Back to Basics – Active Versus Passive Investing

Investing Performance. Most active investors underperform against the index they’re competing against. For example, the 2014 SPIVA (which is basically the Standard & Poor’s scorecard that shows how well actively managed funds perform against various indices) showed that 86.44% of active large-cap mutual fund managers failed to match the S and P 500’s performance over a 1 year period. Continue reading

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Invest in Flowers, Not Rims

So why is this important? Like I mentioned earlier, spending thousands of dollars on auto accessories means that money isn’t invested for the future. Most people would read this to mean investing in Thrift Savings Plan, your retirement accounts, or putting money towards your children’s’ college education—all worthwhile goals. However, I’ll define it in a slightly different manner by describing what the auto accessory store replaced—the flower shop. Continue reading

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Does Your Financial Plan Pass the Sleep Test?

Members of the Greatest Generation, my grandparents came of age during the Depression, a period marked by severe distrust of financial institutions and an extreme aversion to risk. After my grandfather died, my grandmother had to manage her finances for the rest of her life, 28 more years. The way she handled her money reflected her upbringing, her deep dislike of risk and her commitment to her goals. Continue reading

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