More wisdom from the late, great, John Wanamaker: Twenty years ago I had a capital of about a half million dollars. I then realized that a business man with a half million of capital and a million and a half of insurance on his life would have better credit than one with a half million […]
The chilling truth about financial risk
Back when Yours Fatherly was a tweenager, my best friend John and I sneaked up to the loft of my parent’s barn and jumped out the hay door. It was winter and there was a bunch of snow on the ground. And, since we didn’t own a snow plow, my parents would convince a friend […]
My zero tolerance policy on financial risk
Let’s rap about risk. I have a zero-tolerance policy for risking my client’s money. Now, that doesn’t mean clients should never risk money. It just means any money my clients give me is not at risk in the financial markets. This wayward financial advice hinges on a financial concept called “risk capacity.” Risk capacity refers […]
Why midwits advise you to take financial risks you cannot afford
I recently done heard a new werd. Actually, I’m not 100% sure it’s a real word, but here it is: “Midwit”. A midwit is someone who has average or above average intelligence but acts like they are of genius-level intelligence when they’re not. So… they’re not really a nitwit, but they’re also not a for-real genius. […]
Why the California pension system is in the crapper despite recent good results
Whelp… it looks like index funds didn’t save CalPERS. Back in 2014, the California pension systems (CalPERS and CalSTRS) yanked a bunch of money out of actively managed funds and shoved them into passive index funds. Yay passive investing. Uh. Wait. CalPERS and CalSTRS are still underfunded and still not making headway, aren’t they? Yes, they […]