97% of Mutual Funds Underperform
Twice a year the S&P publishes a report called SPIVA, which is a scorecard to see how mutual funds, aka active portfolio managers, are faring versus their passive index funds. SPOILER ALER: Active management is getting killed. The SPIVA report even controls for other variables such as style drift, survivorship bias, and avoids double counting different share classes of the same fund. This makes SPIVA the most accurate and reliable performance data available in the Active vs. Passive debate.
How To Diversify An Equity Portfolio
"Help! I need to diversify my equity exposure!" Fortunately, we have lots of data and research to show which asset classes are helpful in adding diversification to a stock portfolio. Here are a few asset classes you may want to look into, and two that are wrongfully assumed to add diversification.
How CA Law SB1126 Impacts Businesses
If you run a small business in California, and have even ONE employee, you are required to offer a retirement savings plan by the end of 2025. The penalty for non-compliance, per Government Code Section 100033(b), could be up to $500/employee.
Why QQQ Isn't For Y-O-U
QQQ, the fund based on the Nasdaq 100 Index, is the consensus investment for "tech exposure." However, it has flaws that no one is talking about. Given its popularity ($97bill in inflows over the last 12 months) it is important to understand how this fund works.
The Myths of Dividend Investing
Investing in high dividend paying companies is a popular trope in the personal finance community. Here are 10 reasons to reconsider this approach.
Tax GAIN Harvesting?!?!
Tax Gain Harvesting is a tax arbitrage strategy where you sell investments in a taxable brokerage account at gains, during a year in which your tax rate is low. This can eliminate, or severely reduce, the amount of taxes you pay on the appreciated positions.
Ready for a Big Capital Gains Tax Bill?
If you own mutual funds, you may have received a bill for capital gains tax, even if you didn’t sell your shares. Why?
Active ETFs Are A Joke
Growth Stocks FTW!!! For the first half of 2024, large cap growth stocks in the U.S. returned over +23%, the best performing asset class by far.
Year End Tax Planning
Only 73 days left until the end of the year! Below are some tax savings strategies that you will want to take advantage of before year end.
Growth Stocks FTW!!!
Growth Stocks FTW!!! For the first half of 2024, large cap growth stocks in the U.S. returned over +23%, the best performing asset class by far.
2024 Tax Planning
Congrats! You just finished paying your 2023 taxes! Now is the perfect time to get started on tax planning for 2024.
The Tax Hack Every Investor Should Know
IRS Code 852(b)(6) is the greatest tax hack that every investor should know.
The Solo 401k
ATTN: Solopreneurs – The Solo 401k is the secret wealth hack you didn’t know you needed. If you are a business owner and your only employee is yourself, you can save a massive amount in taxes by opening a Solo 401k plan. These plans can be setup at a reputable firm like Charles Schwab, and often have low/no fees.
Time In The Market > Timing The Market
The human brain is laughably terrible at being able to correctly predict when you should buy and sell investments. Here are some fun facts that show the benefit of staying invested for the long term.
The American Dream
From 1980-2023, the U.S. housing market returned 8.6% while the S&P 500 returned 14% when including dividends.
Passive Income Vol. 3: Preferred Stock
Not quite a bond, and not really equity, preferred stock sits between these two major portfolio building blocks in the capital stack. So why should you consider adding preferred stock to your portfolio?
Financial Habits
40% of your daily actions are habits, not decisions!
Market Timing
"Stocks are so expensive! I can't invest now!" - Everyone
The Fixed Income Fallacy
"My advisor picks the best bond funds. These portfolio managers can add alpha because bonds are less liquid than equities." 🤔 🤔
Passive Income Vol. 2: Municipal Bonds
Tax-free income and protection of capital?!?!… Its not an IUL, its municipal bonds!!