BeManaged

May Newsletter – Fiscal Debt and Investment Returns

Jonathan Ericksen — Thu, 03 May 2012 16:03:34 +0000

Investment Returns and Overall Account Growth Your contribution level critical to a successful retirement The Employee Benefit Research Institute’s latest survey of 401(k) valuations looks at account growth by age and tenure (number of years participating in the plan). From January 1, 2011 through January 31, 2012, account values of newcomers under the age of [...]

Beware of Confirmation Bias – And its Assault on Your 401k

Jonathan Ericksen — Thu, 03 May 2012 15:19:44 +0000

There is a useful analogy that relates the observation a goldfish makes when looking through the rounded glass of his fish bowl and us – the human. As we might suspect, a goldfish observing the outside world through the lens of a glass bowl would see things differently than you or I. To the goldfish, [...]

Advisors – An Analogy to Understanding A Fiduciary Vs. A Non-Fiduciary Advisor

Jonathan Ericksen — Wed, 11 Apr 2012 15:22:33 +0000

Those who guide individuals on their personal financial decisions generally fall under two categories: those who manage assets acting as a Fiduciary and those who advise clients acting as a Non-Fiduciary. The greatest distinction between these two groups is the incentives behind their guidance. I’ll help clarify what we mean by an analogy. First, the specifics. [...]

April Newsletter: An Exceptional Quarter and the Monetary Base

Jonathan Ericksen — Thu, 05 Apr 2012 18:52:12 +0000

Headlines Tout Largest First Quarter Gains in Years! What Happens Next? How can we not be excited! The S&P 500 rose 12.6% over the first three months of this year, the best start since 1998. Foreign stocks rode along, with an 11% gain since December 31st. Over the last 40 years, the record hints that [...]

Video – Illustrating the Difference – Brokers vs. Fiduciary

Chad Griffeth, AIF — Mon, 26 Mar 2012 20:07:46 +0000

Over the past few years, I have become a big fan of whiteboard illustrations that simplify concepts which can be challenging to understand. The video below by HighTower Whiteboard Animation does a great job of simplifying the confusion over the difference between brokers and a fiduciary in a nice little analogy. Can’t view? Click here [...]

March Newsletter – Earnings Estimates Dropping

Jonathan Ericksen — Mon, 05 Mar 2012 17:27:46 +0000

February Market Returns Good news for aggressive investors Aggressive investors were rewarded in the month of February with the Dow Jones Aggressive benchmark returning 4.63% on investor capital. The S&P 500 index, the broadest and most comprehensive measure of U.S. equities, returned 4.32%. International investors did equally a well with the Morgan Stanley Capital International [...]

February Newsletter – Considering Risk When Evaluating Your Investment Options

Chad Griffeth, AIF — Mon, 13 Feb 2012 20:39:45 +0000

Adding Measures of Risk to Your Fund Evaluation Picking your funds based solely on performance is a common mistake Return numbers are the most readily accessible pieces of information available to you as an investor. As a result, it is too easy to make fund choices for your 401(k) based on those returns. The level [...]

The Surprising Paradox of Choice in 401k Plans

Jonathan Ericksen — Wed, 01 Feb 2012 16:34:27 +0000

You may have heard about experimental studies that aim to capture the human experience when provided a large variety of options. Consumers today are often bombarded with a very high number of choices when they enter shopping malls, department stores, restaurants, mobile phone stores, etc. It is likely we have all experienced a certain level [...]

A Mountain Climber’s Perspective on Risk

Jonathan Ericksen — Thu, 19 Jan 2012 01:08:53 +0000

Imagine you’re a mountaineer about to scale the face of El Capitan in Yosemite National Park. As you hike to the bottom of the face your level of risk to injury is relatively low. You might trip and fall on your hike but any injury is nonetheless negligible. In this situation, your exposure to downside [...]

BeManaged Year End Newsletter – 2011 Was a Treacherous Ride to Nowhere

Chad Griffeth, AIF — Thu, 19 Jan 2012 00:04:36 +0000

Conservative Investors Rewarded in 2011 A treacherous ride to nowhere Pretend for a moment you pulled off your best Rip Van Winkle imitation and slept through 2011. You pick up a “Year in Review” newspaper, and find out: A number of European countries (Portugal, Italy, Greece, Spain) are close to defaulting on their debt. The [...]