Posts Tagged ‘401k tips’
Annual Dalbar Study Shows Investors Are Still Behaving Badly
Dalbar releases an annual study gauging the impact of investor behavior on investors’ long term portfolio returns. Our friend Carl Richards of BehaviorGap.com, writing for the NYTimes.com Bucks blog, illustrates the impact of investors’ decisions on their long term portfolio performance via the findings of this year’s study.
Read More401(k) Investing, Diversification and Asset Allocation – In Plain English
The BeManaged Ingredients and Recipe Investment Analogy
Over the past number of years I have come to really enjoy cooking. It unknowingly led me to an analogy for investing that is simple to understand and better yet, visual. The analogy, consisting of ingredients and the underlying recipe, has helped hundreds of investors better understand what they can ‘control’ within their 401(k). Furthermore it helps investors understand confusing terms such as “diversification” and “asset allocation” and how they impact the ‘behavior’ of their portfolio.
Read MoreBeManaged August ’10 Research Newsletter : Capital Disappearing in Private Sector
The following are some highlights discussed in the August ‘10 Research Newsletter from John Whaley, CFA, AIF, Director of the BeManaged Research Department.
Equities Gain Over 7% in July
The EBRI Retirement Readiness Rating
Capital is Disappearing in the Private Sector
Everyone Makes Investing Mistakes, Just Don’t Create ‘Anchors’
Our friend Carl Richards, writing for the NYTimes.com Bucks blog, does an excellent job of speaking to the ‘waiting-until-I-get-back-to-even’ mistake many investors make. It’s called anchoring. Essentially, we create a value in our mind for an investment we want to receive before selling.
Read More401(k) Investors Achilles Heel #4 – Managing Risk Through Contributions
One of the biggest issues we see during this time is people will stop their contributions when the market takes a down turn, and then contribute again once the market is doing “better.” Unfortunately, as with the other achilles heels we have discussed, this is the exact opposite thing 401(k) investors should do.
Read MoreIgnore Generic 401(k) Guidance Posed as Advice
We have seen people follow guidance from the likes of the Jim Cramers, Suze Ormans and Dave Ramsey (though we are big fans of his debt reduction advice), which more often than not steers people into an inappropriate portfolio. Many 401(k) providers will even provide some general guidance as well, but they leave investors to figure out the ideal recipe (asset allocation) to create from their plan’s ingredients (investment options).
Read MoreBeManaged July ’10 Market Outlook Newsletter – Second Quarter Ends with a Thud
The following are some highlights discussed in the July ‘10 Research Newsletter from John Whaley, CFA, AIF, Director of the BeManaged Research Department.
Second Quarter Ends with a Thud
Another Review of Long-Term Market Value
A Picture of Risk
BeManaged June ’10 Research Newsletter – Govt. Finance Bubbles Hit World Markets
The following are some of the highlights discussed in the June ‘10 Research Newsletter from John Whaley, CFA, AIF, Director of the BeManaged Research Department.
Read MoreAre All Investment Mistakes Investor Mistakes Instead?
Carl Richard’s latest article brings up a very interesting perspective on investing. The following sums is up pretty well,
We’re quick to focus on the reward but fail to appreciate the consequences of our choice. If an investment performs well, we like to think, “I picked a winner.” If it’s the reverse, and the investment fails, it’s someone else’s fault.
Read MoreThe Temptation (and Danger) of Past Investment Performance – NYTimes Bucks Blog
It’s understandable. You are looking to invest in something different in your 401(k), and what is the most accessible bogey to judge the funds in your plan? Past performance. It tugs at the foundation of human nature, greed and fear.
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