Financial Wellness @ Work

Should You Buy Life Insurance as an Investment?

In response to this article we published on Forbes, we received this question on our Facebook page:

I recently read your article “Should You Use Life Insurance as an Investment?” on Forbes. I wanted to know how this article would apply to me. I just graduated and started my first job that pays pretty well. I don’t have any dependents so I didn’t think about life insurance until I meet with a financial advisor. He said starting insurance young is a better investment where I could keep safe dollars and be more risky in other parts. Would I be better off buying insurance now and benefiting from compound interest or use that money in other investments? Thanks! Read more

How to Invest: A Tale of Two Investment Theories

My first exposure to investment theories was during an economics class I took in college. I was always sort of a geek when it came to graphs and numbers—which I guess explains my degree in statistics—so I was captivated when the professor drew an example of the efficient frontier on the chalk board. It made perfect sense to me.  Read more

What Was I Thinking? – How Some Investment Decisions Are Made

Think about the last investment decision you made. Why did you make it?  Was it part of an existing investment strategy? Did you see somebody else do it? Perhaps it was done for you?   Read more

How Making Mac-n-Cheese is Like Investing

I was talking with my friend Diane recently and she told me a story about a visit she made to her daughter’s house.  Here is her email recap of a portion of that visit:  Read more

What Baseball Can Teach Us About Investing

This weekend, I watched my nephew play in a baseball tournament.  They played very well in their first game, outscoring their opponent by more than ten runs.  They played well in their second game too but an unfortunate mix up in fielding assignments when there were two outs cost them two runs late in the game that proved to be the difference. It was a hard loss and for the next few days, all I could think about was that one play. If only they had made that play they would have gotten out of the inning with the lead and quite possibly won the game. Read more

Online Investment Platforms: Wave of the Future or a Passing Fad?

Last week, we looked at how the asset allocation process doesn’t have to be an overwhelming task and that a variety of options exist to create a diversified portfolio.  As we continue to examine different ways to create an investment plan that matches your life goals, it is important to understand where you can turn to for asset allocation guidance.  After all, financial literacy research studies demonstrate that most people do not have the financial knowledge and confidence to manage their own investments.  Read more

Is Robo Advising Right For Me?

There’s been a lot of buzz recently on the idea of investors using robo-advisors to manage their investment portfolios rather than human advisors.  If you are not familiar with the term, a “robo-advisor” is an online financial advisory service that uses a basic investment philosophy to create software programs that can manage a person’s investment portfolio automatically.  The argument for using this type of approach rather than a human advisor goes something like this: if an investment portfolio using fundamental investment strategies can be implemented automatically with a computer, then why pay for human involvement?  Read more

Are You Choosing the Right Investments in Your 401(k) Plan?

It can be hard to figure out if the investment selections within your retirement plan investments are a good fit for your personal goals. The concept of diversification is usually represented by the phrase “don’t put all your eggs in one basket.” It makes perfect sense but how do you know which baskets are the best fit and how much do you put in each basket?   Read more

Be an Owner Rather Than a Loaner in Retirement

One of the most common pieces of investment wisdom is that you should invest more in conservative “loan” investments like cash and bonds and less in more aggressive “own” investments like stocks and real estate as you get closer to retirement. This may have made sense when bonds were paying 6% or more but with long term bonds rates now closer to 3%, this could actually make it harder to retire comfortably or more likely you could run out of money in retirement. Cash is paying less than inflation. Rather than to low-interest bonds and cash, why not shift towards high-yielding dividend stocks and real estate? Here are some advantages of this approach: Read more

Can You Beat the Market…With Index Funds?

Last week, I wrote about different types of index funds and how some “index funds” aren’t as diversified or as low cost as they may seem. However, there’s also a case for certain types of diversified index funds that are designed to outperform traditional index funds. They come in two flavors: equal weight and fundamental index funds. Read more

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