All tagged investments

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.”

The hidden problems in your nonprofit 403(b)

The hidden problems in your nonprofit 403(b)

David Creekmore
Retirement, Nonprofit Employment, Investing

What is a 403(b) and why does it exist? If you’ve ever asked you were probably told ‘it’s the nonprofit version of a 401(k)’ and that’s true more or less. The 403(b) was indeed created by Congress 1958 specifically for nonprofit organizations. It is the grandparent of the 401(k). 403(b) plans are fine if set up correctly, but there are many bad ones with lousy investments and high fees sold to trusting nonprofits by consultants and brokers that are not fiduciary financial advisors.

Some things cannot be adequately explained to a virgin.

Some things cannot be adequately explained to a virgin.

David Creekmore
Investing, Life Goals, Common Questions

The other week, a client called me from Mexico on her new vanlife journey around North America. She has modest assets and is trying to define herself less by her job, which she is doing part-time remotely. I’m proudly responsible for the financial plan supporting her life goal. I mentioned to her that the US stock markets were down over 11%. “Oh yeah, look at that,” she said, reviewing her online statements, with interest but not worry. If, like her, you were living your best life last month and not paying attention to the stock market, kudos. It’s not good for investor health or wealth to pay close attention to stock market returns.

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.