Salient to Investors: Studies suggest that investors who use advisers get better returns than individuals going at it alone. Advisers usually have confidence and discipline that are key factors in successful investing. Most people do not have the time or interest in managing their own portfolios. Individual investors can be
READ MORE... →Salient to Investors: Luke Sims at Eagle Capital Growth Fund said Warren Buffett is trying to build up his stock pickers Combs and Weschler to show he hired the right money managers to succeed him. Buffett book author Jeff Matthews said the 2012 performance by Combs and Weschler was extraordinary but wants to see
READ MORE... →Salient to Investors: Mark Miller writes: A growing number of employers are adding unbiased third-party investment guidance options as they work to improve their retirement plans. The best type of planner: independent advisers who have the fiduciary responsibility to put client interests first. A Deloitte Center for Financial Services survey
READ MORE... →Salient to Investors: The financial foundation of leading-edge boomers is stronger in the aggregate than commonly assumed, and is likely to improve in coming years. A study by Alan Gustman at Dartmouth, Thomas Steinmeier at Texas Tech and Nahid Tabatabai at Dartmouth found that the inflation–adjusted wealth of people aged
READ MORE... →Salient to Investors: Lee Topley at Unified Trust said 401(k)s were first introduced in the late 1970s as supplements to defined benefit pensions, when companies could easily to meet obligations through low-risk bonds with double-digit interest rates. After interest rates fell 401(k) plans grew as more companies decided that pensions
READ MORE... →Salient to Investors: Keith Chen at Yale says: The grammar of the language we speak affects both our finances and our health. If you speak English you are likely to save less for your old age, smoke more and get less exercise than if you speak a language like Mandarin,
READ MORE... →Salient to Investors: Moshe Milevsky at York University says: People with stable careers and regular paychecks – tenured professors, accountants, nurses etc. – should invest in bonds. People with variable incomes tied to the market or economy – salesmen, brokers, home builders, entrepreneurs etc. – should buy stocks. The most
READ MORE... →Salient to Investors: Beth McHugh at Fidelity Investments said average balances in 401(k) accounts in the US rose 12 percent from a year earlier to a record high of $77,300 at year-end 2012 – 2/3 of the increase from market appreciation, the remainder from contributions. ICI says Americans held $3.5 trillion in 401(k) accounts as of Sept.
READ MORE... →Salient to Investors: First-time enrollment in graduate school has declined for 2 years in a row. Debra Stewart at the Council of Graduate Schools said undergraduates with debt are half as likely to pursue a graduate degree as those without. Mark Kantrowitz at finaid.org graduate students owe 30 percent of
READ MORE... →Salient to Investors: Dan Ariely at Duke and Nina Mazar at Rotman School of Management write: Our brains are hard-wired to choose short-term payoff over long-term gain. Saving money as a habit is especially important, so use commitment devices like pre-committing to saving a percentage of future wage increases. Studies show
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