A lesson for young workers: Save as much as you can now

Here is a lesson to keep repeating to your children and grandchildren: it is easier to save $381 per month toward retirement than to save $5,778 per month. Seems simple, doesn’t it? Yet it might ...

Marriage and wealth determine whether retirement is a success

What is the secret to leading a financially successful and healthy retirement? Accumulate wealth while you are working and stay married in retirement. And, for the best individual outcome, die before ...

Simplicity and Sophistication

The Chinese philosopher Confucius once said that life is very simple, but we insist on making it complicated. You could say the same thing about investing. Complexity in investing often comes with a lack ...

Rate Expectations

Interest rates around the world are at historic lows. They can only go in one direction from here, right? And aren’t rising interest rates bad for bond investors? The truth might surprise you. Central ...

Eugene Fama, recipient of the 2013 Nobel Laureate in Economic Sciences

Professor Eugene Fama of the University of Chicago was recently awarded the Sveriges Riksbanks Prize in Economic Sciences in Memory of Alfred Nobel for 2013. Professor Fama began his work in the 1960’s ...

Client Letter – Q3 2013

During the past quarter, the international markets performed the best, with modest returns in the U.S. markets.  The chart below shows the 3-month, 1-year, and 10-year performance of many DFA funds (representing ...

Congressional Inaction May Lead to Short-Term Pain

The stalemate over the federal budget and debt ceiling in Washington, D.C. has put the markets on edge and generated a lot of scary headlines. We are following events very closely, but we can make no certain ...

The Impact of the U.S. Government Shutdown On the Markets

Stocks markets worldwide declined Monday as the U.S. government faced a shutdown due to the Congressional budget stalemate. Today, markets rose, even though the shutdown occurred.  Here are some considerations ...

What We’ve Learned Five Years After the 2008 Crisis

Five years ago this month the world’s financial markets endured one of their biggest crises ever. Lehman Brothers Holdings failed, igniting a firestorm. Within days the unthinkable occurred: Insurance ...

More Stocks Can Mean a More Secure Retirement

Some people who are about to retire make a big mistake: They keep too much of their retirement portfolio in “safe” fixed-income investments, and not enough in “risky” stocks. Some ...