Articles

Article Index

Wishing You A Happy Tax Season Tax season is a good time to evaluate whether your investment approach is minimizing your tax bill. This article explains the importance of two straight forward strategies: tax loss harvesting and optimization of tax deferred accounts.

Published by Alpha Architects, the article Market Volatility? Hold on and Enjoy the Ride explains why investors should largely ignore volatility given the nature of changing discount rates and expected returns.

Recognized as one of the outstanding financial articles of 2017, “Passive” Investing, Theory and Practice in a Global Market argues that pure passive investing is a myth. As such, investors shouldn’t try to track an ad hoc index at the expense of cost and tax efficiency.

Your benchmark is up 9.3% so far this year, but you’re not. Should you care? This is a less academic and more practical companion piece to the “Passive” Investing article. The answer is yes, but not too much given we neither have a good definition of “the market” nor of relative risk-adjusted performance.

Delink Past Performance from Your Financial Plan  Do not adjust your financial plan based on past performance and your current portfolio valuation. Except that a 4% withdrawal rate has historically been a conservative assumption regardless of market performance, but the best approach to a safe retirement is mindful spending, including fees, and a smart tax strategy

2017, A Lesson in Investment Humility As is common, experts failed to predict the strong market performance of 2017 because the market is by its nature unpredictable. Investor should learn from that poor record and apply a heavy dose of humility to their own outlooks and focus on areas they can control like fees and taxes.

Published in December of 2016 by Alpha Architects, Interest Rates and Value Investing, reviews how the market determines interest rates and why real returns, independent of market forecasts, indicate that few bonds offer investors much value.

Published in October of 2016 by Alpha Architects, Digging Deeper into Closed End Fund Investment Opportunities, explores Closed End Fund valuation and theory. This is an asset class that at times can offer investors compelling valuations.