Welcome to the 'No-Guilt' blog!
People come to here because they want to build financial confidence and take meaningful action. We provide the context for those things that affect your financial health. Our goal is to help you live in the 'No-Guilt Zone'.
U.S. households generally agree they need a financial plan to achieve long-term success and security. However, too many households—including those with engineers and scientists—hold beliefs about financial planners that make them hesitant to seek out or work with a qualified financial planner.
Here are eight truths to dispel the myths about “real” financial planners.
Myth 1: Financial planners are the same as stockbrokers, insurance agents and other financial salespeople.
Diversification is a fundamental concept of investing that was introduced to us through the groundbreaking, Nobel Prize-winning research of Harry Markowitz in the 1950s.
Most investors think of diversification from the traditional perspective, which means investing in different types of stocks and bonds in an effort to increase portfolio returns while mitigating risk.
Now, thanks to 60 years of empirically-validated financial science, we can expand our concept of diversification and consider it within the context of "factor investing.” Factors are simply sources of expected returns that are well documented in markets around the world and across different periods.
Former Fed Chief Alan Greenspan coined the phrase “Irrational Exuberance” in 1996, during the dot-com craze of the 1990s. Many interpreted the phrase as his warning that the market was getting overvalued or overheated.
Since the dot-com bubble imploded in 2000, we’ve heard the phrase whenever someone perceives any kind of speculative frenzy in the stocks, housing, commodities or some other asset class or area of the economy. For many, irrational exuberance means we’re in bubble territory.