All tagged inflation

Another in the Virgin series: Exciting ideas and companies don’t make good stocks.     

Another in the Virgin series: Exciting ideas and companies don’t make good stocks.     

David Creekmore
Common Questions, Stocks

In the last few years almost 200 specialized 'thematic' ETFs and mutual funds have been created. The asset growth of thematic funds quadrupled. Thematic funds offer unique, tactical bets on investment opportunities grouped by a subject or motif. Typically, it’s about technology and our changing future. Thematic funds tend to be a bull market phenomenon, possibly a result of investor overconfidence and enthusiasm. (There’s a good line that bull markets make everyone look smart.) It’s an intuitive strategy: “Let’s invest in a handful of really smart innovative companies that people are excited about, the growth potential is incredible.”

Estimating the future cost of college

Estimating the future cost of college

David Creekmore
Common Questions, Life Goals, Education

College has a big impact on a family’s long term finances. It’s a large expense that comes relatively quickly in the family financial lifecycle, so there isn’t a lot of time to see salary improvements and allow for beautiful, beautiful compound interest to do its magic. Most of us know college prices have gone up a lot faster than the Consumer Price Index, our general benchmark for inflation. But how much faster? What should you and I assume today about the cost of four-year college in 18 years?

A better way to manage your emergency fund.

A better way to manage your emergency fund.

David Creekmore
Life Goals, Common Questions

The question I get the most is ‘Should I invest my emergency fund in the stock market?’ Bank interest rates are at all-time lows and are not rising with interest rate hikes any time soon. Banks have enough consumer deposits and don’t need to compete. With inflation surging and the S&P 500 returning a blistering 14.36 % for the last 10 years, it’s painful to see your .5% bank account lose money in real terms.

Can you protect your investments from inflation?

Can you protect your investments from inflation?

David Creekmore
Common Questions, Investing

Last week I wrote about who is exposed to inflation risk and identified low-income workers and retirees as the most endangered. To minimize exposure to inflation risk retirees can use both planning techniques or investment strategies. One planning technique we don’t like is to simply spend less, although sometimes that’s the best choice. Technically, one could die younger. We really do not like that. But the math undeniably works. But, here are some planning techniques I do like.