Stocks for the Long Run? Really?

Most of us have heard that stocks have outperformed bonds in the long run. But what is the definition of long run? So far this century, have stocks really outperformed? To answer that question, I decided to look at how three different asset classes have performed in the new millennium. I examined the performance of stocks vs. bonds from Dec. 31, 1999 through June 30, 2015. I compared the total returns of U.S. stocks, international stocks and investment grade U.S. …

How to Beat the S&P 500 Index

I’m going to try to mislead you, but it’s for a very good reason. What I have for you is a U.S. stock fund that not only has beaten the S&P 500 index, it’s nearly certain to continue doing so in the long run. For now, I’m going to call this mutual fund the Super-Secret Fund, or SSF for short. Looking back over 20 years, you can see that the SSF trounced the S&P 500 index. Not only did it …

Financial Adviser Exposes Own Portfolio

People are often surprised when I describe my personal portfolio to them. Using an analyzing tool from Chicago-based Morningstar, I’ve put together a brief description of my own daringly dull portfolio and, far more important, why it looks like it does. Most of my investments are in mutual funds with an average expense ratio of 0.16 percent annually. I don’t have enough money to diversify by buying individual stocks, so I buy low-cost index funds that track the overall market. …

Stock Investing: Time Versus Timing

More and more investors are telling me that their portfolios have now fully recovered from the 2008 stock market crash. I respond in my typical tactless way by telling them their performance has been awful. That’s because stocks are now 64 percent above their pre-crash high. Put another way, if you had timed the market perfectly wrong and put $10,000 in a total stock market index fund on Oct. 9, 2007, the pre-crash peak, you’d have about $16,375 today. All …

3 Ways to Cut Your Investment Tax Bill

As tax season draws to a close for another year, you may be among those feeling the pinch from taxes paid on investments. I admit that paying taxes is not exactly my favorite thing, so I always look for ways to be more tax-efficient. Here are three things you can do to keep more of what you earn: First, buy tax-efficient investments. Mutual funds that turn over stocks in the portfolio pass along any taxable gains to their holders. Many active funds …

Where to Stash Your Cash This Spring

If you want to make a hundred bucks or even thousands for just an hour of your time, then this post is for you. All you have to do is pick the right place to stash your cash and perhaps change your thinking on certain certificates of deposits (CDs). Read on, and you’ll see that CDs which appear too good to be true really do exist. The power of inertia often has us leaving large sums of cash at our local …