We teach teenagers a lot more about sexuality than we do about money. This can confuse them about what they should be learning. Give this article to a teenager and encourage him or her to start a Roth IRA.
posted by David John Marotta @ 1:22 PM
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Franco Modigliani won the Nobel Prize for a simple technique that squirrels know intuitively from birth. You have to squirrel away some nuts during times of plenty so you can survive during times of scarcity.
posted by David John Marotta @ 1:09 PM
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I often get asked, "Are investment management fees tax deductible?" The answer is not a simple "yes" or "no." Like many tax questions, the answer is "It depends."
posted by David John Marotta @ 7:56 PM
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Emerging market bonds are an attractive way to get a higher yield, but historically they have come with higher volatility and a high incidence of default. But that has been changing.
posted by David John Marotta @ 12:16 PM
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Laws have always regulated who may marry, the obligations related to marriage and children and whether and how a marriage can be ended. Governments have always put their own social agenda above the pluralism of personal choice.
posted by David John Marotta @ 12:12 PM
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A gone-fishing portfolio has a limited number of investments with a balanced asset allocation that should do well with dampened volatility. Its primary appeal is simplicity. As a secondary virtue, it avoids the worst mistakes of the financial services industry.
posted by David John Marotta @ 12:05 PM
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Think of static asset allocation as where to set your sails and dynamic asset allocation as a way to keep your balance as your boat glides and sometimes bounces through the waves.
posted by David John Marotta @ 11:57 AM
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What we would really like to measure are the changes in price (P) that cause a company with a good long-term track record to look relatively cheap. Economist Robert Shiller created just such a measurement.
posted by David John Marotta @ 11:53 AM
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The Marotta allocation method is a proportionally weighted allocation based on the square of each Sharpe ratio. Squaring the Sharpe ratio drastically reduces asset categories in proportion to their distance from the efficient frontier.
posted by David John Marotta @ 11:49 AM
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Crafting portfolio asset allocations is a combination of art and engineering. Just as a blending of colors can produce cerulean, so a blending of indexes produces a unique shade of risk and return.
posted by David John Marotta @ 11:47 AM
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The efficient frontier measures all investments on a scale of risk and return. Risk is commonly placed on the x-axis, and return is placed on the y-axis.
posted by David John Marotta @ 10:07 PM
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A stock's valuation is measured on a continuum from "value" to "growth" In broad strokes, value stocks are cheap and growth stocks are expensive.
posted by David John Marotta @ 10:03 PM
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The second factor of investing is size as measured by a stock's total capitalization. Over time small cap will outperform large cap even after factoring out measurements of volatility.
posted by David John Marotta @ 9:56 PM
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Modeling investment returns seeks to find an equation to predict your expected returns as much as possible. The simplest equation for the markets would be "Return equals 11.71%." This has been the average return from 1927 through 2010, the zero factor model.
posted by David John Marotta @ 12:14 PM
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