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Advanced Investing

Speculative Investments – What Percent Should I Invest?

Speculative Investments – What Percent Should I Invest?

By in Advanced Investing, Asset Allocation, Reader Question, Stocks | 13 comments

Are Passive Investments for You? “What is your take on passive investing? If passive investing, what percentage of your portfolio would you allocate for “speculative investments”, like single tech stocks and such?” ~ Jake at I Heart Budgets asks this two part investing question. Passive Investing and Speculative Investments You don’t usually see these two topics discussed together. Passive investing is the cornerstone of John Bogle’s index fund investing platform. Backed by empirical research and millions of practitioners, one topic that’s rarely discussed with passive investing is speculation.  Well, here goes….  Passive Investing-My Take Jake asks about my take on...

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Should I Invest In An IPO?

Should I Invest In An IPO?

By in Advanced Investing, Investing, Stocks | 0 comments

Just Because You Can Invest in an IPO, Doesn’t Mean That You Should Sometimes it feels like the best time to invest in stocks is 50 years ago—not an encouraging thought for someone looking to get started investing in 2018! Since it seems like everything good is already too expensive to start investing in, you might wonder if you should invest in an IPO. An IPO, or an Initial Public Offering, is when a company first makes its stocks publicly available for purchase. This typically happens when the company is young and hip and has potential for some serious...

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Best Asset Allocation Based On Age & Risk Tolerance

Best Asset Allocation Based On Age & Risk Tolerance

By in Advanced Investing, Asset Allocation, Investing, Reader Question | 14 comments

How To Figure Out the Best Asset Allocation For You Graham from Moneystepper asks; What metric (rule of thumb) would you recommend for asset allocation based on age and risk appetite? Choosing your best asset allocation is not as simple as it might seem. Let’s attack it from several investment angles and throw in a bit of research as well. What Is Asset Allocation?   The asset allocation decision divides total investable funds by percent into specific investment categories. An asset allocation represents the investor’s choice of broad asset classes and the percentages distributed across the categories. The two most...

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Rebalancing Your Investments and Other First World Problems

Rebalancing Your Investments and Other First World Problems

By in Advanced Investing, Asset Allocation, Investing | 0 comments

I’m practically cringing as I write this article. There are so many real problems in this world, that rebalancing your investment portfolio shouldn’t even make the top 10,000. But, with that caveat, I’ll tell you that there’s some stress and anxiety when buying and selling investments.  Annual Investment Portfolio Rebalancing – Need More Fixed Assets In January, I manually update our family accounts and input the amounts into an excel spreadsheet to track the asset allocation. Although I use Quicken and Personal Capital, I’m old school and like the control of my own, personally designed excel sheet. I programmed...

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Cryptocurrency Trends – Should I Invest in Bitcoin, Litecoin or Ethereum Round up?

Cryptocurrency Trends – Should I Invest in Bitcoin, Litecoin or Ethereum Round up?

By in Advanced Investing, Links | 2 comments

Cryptocurrency Investing Thoughts Every time I open my news, twitter, LinkedIn feeds or Wall Street Journal paper, I’m bombarded with cryptocurrency news. Bitcoin was up to $17,050 on December 20, 2017 and recently fell to $9,833 on January 19, 2018 for a one month 29.39% drop. Does that mean, it’s time to “buy on the dip”? Only if you’ve got money to burn.  If I hear about one more bitcoin millionaire – oops, that was last month, I think I’ll scream. This reminds me of the tech bubble, on steroids. Except that the technology companies of the 1990’s had actual...

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What the Opera Carmen Teaches About Investing and Behavioral Biases

What the Opera Carmen Teaches About Investing and Behavioral Biases

By in Advanced Investing, Guest Post, Mind and Money | 0 comments

I received a message in my inbox from Mitzi Perdue, author of How to Make Your Business Last, the widow of Frank Perdue and daughter of Ernest Henderson, co-founder of the Sheraton Hotel Chain. She wanted to share this story. Her tale is inspired by legendary hedge-fund Manager Roy Niederhoffer’s analysis of the opera Carmen and it’s lessons for investors. She synthesizes an analysis of Carmen, the opera written by George Bizet, and describes its behavioral economics and investing lessons.  Even the smartest most sophisticated investors are sometimes swayed by their hearts. By, Mitzi Perdue What’s Really Going on with the...

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