Jack Bogle’s 5 Simple Rules for Investing in Stocks

Last week, 200 “Bogleheads” met for an annual gathering near Philadelphia, PA to hear the legendary founder of Vanguard, the world’s largest fund company, talk about investing. The Bogleheads is a not-for-profit organization in which anyone can post financial questions (at bogleheads.org) and then hundreds of volunteer members (Bogleheads) who are seasoned investors respond with advice — generally without a profit motive. To ask a question, you must join, but you can probably find the answer to your question by …

Regrets? Older Workers Have a Few

Which would you rather have: a job that offers a 401(k) or one that doesn’t have a retirement plan but comes with a higher salary? If you’re like most pre-retirees ages 55 to 65, you’re more than five times as likely to choose the 401(k). That’s one of the findings of the third annual survey by American Century Investments, a Missouri-based money manager that polled more than 2,000 workers ages 25 to 65 about saving, retirement and regrets. When the …

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. …

When to Sell an Investment

I’m often asked when the right time is to sell an investment. There are actually two answers — a logical one and an emotional one. Let me explain by illustrating through one of the lessons in a course I teach. I teach behavioral finance to CPAs (and confess I am one). I give the class the following situation and then poll them on what they would do: You have been gifted $10,000 and decide to buy two stocks with 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. …

Investors Win in Supreme Court 401(k) Decision

The U.S. Supreme Court this week sent a strong message to employers offering 401(k)s: You can’t just pick investments for the plan and then forget about them. This unanimous decision is expected to provide greater protection for 401(k) participants who increasingly rely on these plans to fund their retirement. And it may also trigger more lawsuits by workers unhappy with their investment options and the fees charged, legal experts say. “Participants over the long term should benefit from all of …