There is a cost to indexing that most investors are unaware of. It is called “reconstitution.” What is reconstitution and how may the costs involved be solved? What is an index? An index tracks changes in the markets – think of it kind of like a weather barometer. The first article below discusses how the reconstitution effect […]
This brief slideshow discusses some elements necessary to recognize that our emotions and reactions to investing and markets often hurt results. Our brains are NOT wired for investing. Discipline and a focus on what you can control are important to success. There is an investing approach that is based on discipline and evidence from research in […]
DOW 20,000. Is that good? Or is that bad? Guess what – this is simply another way point much like DOW 15,000 was, or DOW 10,000, or pick any DOW number. The Power of the Markets Markets don’t know your specific emotions and behaviors – so the markets march on ignoring them. It is best […]
Most people understand to some degree, what investments are for – presumably for “their goal,” whatever that goal may be. Most people though, miss the difference between what and when investments are for. So, what is the when of investing? Investing by definition means money for the future; contributions buy shares for the future, and shares […]
Indexes were originally developed in the late 1800’s, early 1900’s, as a barometer to what markets were doing overall, rather than trying to determine trends of the cumulative market by looking at different specific stocks making up the market; because, some stocks may fall, and others may rise in price, but what is the overall […]
What makes Dimensional different? Applying Science to Investing. What are those ideas that came from the rigors of scientific research in finance? Which are the ideas worth paying attention to? This four-part video series will provide insights into those answers.Please click on box below to start your video. Part 1 of the series. […]
What makes Dimensional different? Applying Science to Investing. This four-part video series will provide insights into these answers. The origins of Dimensional. Implementing great ideas from finance science that are rooted in academia. Please click on box below to start your video. Part 1 of the series. Part 2 of the series. Note: […]
What makes Dimensional different? Applying Science to Investing. This four-part video series will provide insights into those answers. It all began in the classroom with professors and students. Please click on box below to start your video. Part 1 of the series. Note: Your RSS feed or email may not show […]
What makes Dimensional different? Applying Science to Investing. This four-part video series will provide insights into those answers. The science behind uncovering where returns come from. Please click on box below to start your video. Note: Your RSS feed or email may not show the embedded part of this blog … […]
Predictions are hard to do, especially about the future. (Sidebar: Origins of this quote – you may be surprised). Yet, people seem to believe that they, or somebody, are able to predict what is going to happen next. What is going to happen next? If the news says this, then that? And how do the […]
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About Larry Frank Sr.
As an MBA and CERTIFIED FINANCIAL PLANNER™ practitioner, I help people make sensible plans for a successful retirement. I'm also the author of Wealth Odyssey, a book about financial planning. My retirement planning research is published periodically in the Journal of Financial Planning.
Have a Financial Question?
- Are market returns really the key to your portfolio value? February 27, 2012
- Rebalancing? How does it work? March 4, 2012
- Resources to help with aging issues August 9, 2012
- The Dividend Income Illusion. March 27, 2013
- How do Safe Withdrawal Rates compare to Dynamic Retirement Income? June 20, 2014
- The cost of indexing – and an approach how to reduce those costs February 8, 2017
- Social Security as Longevity Insurance January 25, 2017
- Investor Discipline – What’s that? January 11, 2017
- You don’t need a scanner anymore January 5, 2017
- Will working longer, or part time, increase, or decrease, my Social Security benefit? December 28, 2016