Taylor Larimore, Mel Lindauer and Michael LeBoeuf are the co-authors of The Boglehead’s Guide to Investing. Acolytes of Vanguard founder Jack Bogle, they believe in long-term, low-cost index fund investing. Here’s their advice on what resolutions an investor should make for 2011. Continue reading
A few weeks ago, Mel Lindauer expressed his worry that the super-low yields offered by bonds these days have people considering questionable move: switching money out of bonds and into dividend-bearing stocks in a search of more income. “People look around and there’s nowhere to turn,” said Lindauer of the fixed income market. “I’m really concerned. I’m concerned that people are talking about possibly going into equities to get the 2.5% yield and forgetting about the risks in equities.”
Larry Swedroe added his voice to the chorus of concern in his MarketWatch column last week. High-dividend stock strategies “are poor substitutes for either a high-quality bond approach or [a] diversified stock approach,” Swedroe writes, Continue reading
Taxes are the single biggest drag on investor returns, says Taylor Larimore, the well-known moderator of the Bogleheads’ investing board. Now with Washington having come to some agreement on taxes, and moving toward extending the current tax status quo for two years, there’s no excuse for not putting some attention on your taxes. As a former IRS Revenue Officer, Larimore has a special interest in tax planning as it relates to mutual fund investing. He recently published his 2010 year-end tax tips for investors, and tells Portfolioist in an email interview (below) that sticking to smart tax planning, can make a big difference. Continue reading
Bloomberg BusinessWeek has published a story about some of the extreme derivative products being sold to retail investors looking for a higher yield. This fast-growing business involves highly complicated products that several experts warn most investors don’t really understand.
While reading this I was reminded of Mel Lindauer’s concerns that too many investors are wandering into exotic regions to juice the return on their income investments. Clearly these particular products are in high demand. According to the piece, $31.9 billion worth of structured notes were sold in the first eight months of 2010, up 58% from the same period last year. Continue reading
Yesterday Mel Lindauer, Forbes columnist, book co-author, Boglehead extraordinaire, offered some advice for younger investors. Rocky markets like the one we’ve been bobbing along in are great for the young, Lindauer argued, because investments are essentially “on sale” at the moment.
But the perfect market for someone in their 20s is a tough one for someone in their 60s. The last few years have been extremely tough for those close to retirement. In today’s post, drawn from the same interview with Lindauer, he addresses the challenges older investors face and the downside of a down market. Continue reading
Mel Lindauer, Forbes columnist, book co-author, Boglehead extraordinaire, draws a road map for young investors in this installment of Portfolio Investing 101. Among his rules: start early, buy cheap if you can, automate your savings, and use your asset allocation to diversify your bets and manage your risk. Continue reading