Winning Investing & Planning Principles: Putting It All Together
Becoming an empowered investor is as much about identifying what financial serenity means to you as it is about understanding the mechanics of investing.
Investment Principal #4: Using Investment Factors To Pursue Higher Returns
By mixing and matching factor-based asset classes into a personalized portfolio, you can pursue higher expected returns while managing the investment risks involved.
Investment Principal #3: Using Passive/Index Funds or ETFs
Index-based or passive asset class funds focus on how to reduce the costs and frictions involved in capturing the market’s generous expected returns over time.
Investment Principal #2: Diversify Your Asset Classes
The magic behind diversification is found in a financial measure known as correlation, or the degree to which two asset classes move in similar patterns.
Investment Principal #1: Invest in Asset Classes
Evidence suggests your portfolio’s asset class mix has a much larger impact on its variation of returns, compared to stock-picking and/or market-timing techniques.
From Indexing to Evidence-Based Investing
To appreciate evidence-based investing, it helps to look at its historical roots, planted more than a half-century ago, and incorporated into its early solutions: index and passive asset-class investment strategies.
Winning with Evidence-Based Investing
How do you ensure your best financial interests are the top priority when you invest? One way is to use evidence-based investing instead of traditional active investing
The Investment Policy Statement
Your IPS is a platform from which to build your financial future, as well as a living reference that grows and evolves through conversations, feedback, and updates.
Personal Financial Planning in Retirement
As you approach and enter retirement, your focus typically shifts from saving, investing, and staying on track to spending, preserving, and ensuring you have enough to last.
Planning for Your Prime Earning Power Years
Here we zoom in on your best power plays for the age 35–65 sweet spot, when you’re not yet fully financially independent, but you’d love to do all you can to get there sooner than later.
Personal Financial Planning for Ages 25–35
Investing early makes the most of your youthful super powers: time and compound growth on your investments.
Taking Control of Your Personal Financial Action Plan
Having a retirement plan and investment plan is key to preparing for long-term financial security. Additional components factor in as well, including debt management, risk management, tax planning, and estate planning.